GST Notices Issued by Government

What is Notice under GST

Notice under GST is information sent to taxpayers by the authorities. As a taxpayer, you can use one of the best GST billing software to file the taxes and ensure you comply with all regulations. But if you get a notice from GST authorities, don’t fret, here are details that will help you.

Latest Updates:

GST NOTICE ON 11th May 2023

The update in May was the system’s automated return scrutiny module. This was launched from the Financial Year 2019-20 for all officers to help run automated checks for GST returns for scrutinisation.

GST Notice on 27th December 2022

The update issue in December 2022 was about how and when tax officers can re-determine the tax, interest and penalty demand in a no-fraud case, where there is no proper evidence of fraud.

GST Notice on 05th July 2022

The notification issued in July enabled tax officers to issue demand orders to taxpayers for unpaid and underpaid interest and taxes. This is only for non-fraud cases and applies to unpaid fees and penalties.

GST Notice on 21st December 2021

The December update enabled officers to issue notice u/s 74 to multiple persons for tax short-paid or excess ITC claims by fraud. Now, the officers can also confiscate and seize goods even after concluding proceedings against all persons liable to pay penalties.

The most common reasons for GST Notices

There are several reasons why GST notices will be sent to taxpayers including the delay in filing GST forms like GSTR-1 and GSTR-3B for consecutively over six months. Other common reasons include:

- Mismatch in details provided between GSTR-1 and GSTR-3B
- Difference in input tax credit claims made in different GST forms
- Inconsistent declaration in GSTR-1 and e-way bill portal
- Non-payment of GST liability (tax) or the short-payment of the tax with or without the intent to defraud: show cause notice (SCN)
- GST Refund is wrongly made with or without the intent to defraud: show cause notice (SCN)
- Business is liable but failed to obtain GST registration - Input tax credit is wrongly availed or utilized

Types of Notices under GST law

 A few types of notices under GST law include

- Usual notice - GSTR-3A
- Issued for non-filers of GST returns
- Show cause notice
    - CMP-05 - Questioning the eligibility to be a composition dealer
    - REG-17 - Why should the GST registration not be canceled for the reasons laid down in the notice
    - REG-23 - why the cancellation of GST registration must be revoked for the reasons laid down in the notice
    - PCT-03 - misconduct by the GST practitioner - Scrutiny notice - ASMT-10 - Notice for intimating discrepancies in the GST return after scrutiny

Valid modes of sending GST Notices

- Hand-delivering the notice to the taxpayer or his representative either directly or by a messenger.
- By registered post/speed post/courier
- Through e-mail
- Make it available on the GST portal after logging in
- Publication in a regional newspaper being circulated in the locality of the taxpayer’s last known residential address
- Affixing it in some prominent place at his last known place of business or residence PS: If it is sent in any other mode that is not under GST law (it may change from time to time), the taxpayer need not act upon the notice

Reply to GST Notices & effects of not replying

The reply can be submitted online on the GST portal and the payment can be made if necessary. In case the taxpayer does not reply to the GST notice within the specified time limit, they shall be liable for penalties and further proceedings as each case demands under the GST law. As a taxpayer, you can also assign another representative or practicing chartered accountant to look into the matters.

Conclusion - Defend Government Notices with Accurate Accounting

Be it while filing GST or answering the officer for the notices issued, the taxpayer should be honest and accurate. This is why accurate accounting is very crucial for any business activity. You can use a GST accounting software to ensure there are no accuracy errors present while filing GST forms, thereby avoiding situations that lead to issues of notices.