Different GST notices & Precaution to avoid notices from Department:
Now a days, notices from GST department are continuously received buy different ways and no one should avoid/ignore such notices otherwise one can face heavy repercussion.
Mode of Communication of Notices:
- Communication to the email address
- Making it available on the GST portal after logging in.
- Hand-delivering the notice either directly or by a messenger by a courier to the taxpayer or his representative.
- By registered post or a speed post or a courier with an acknowledgement- addressed to the last known place of the business of the taxpayer.
- By publication in a regional newspaper being circulated in the locality- that of the taxpayer based on the last known residential address.
- If none of the above means is used, then by affixing it in some prominent place at his last known place of business or residence. If this is not found as reasonable by the tax authorities, they can affix a copy on the notice board of the office of the concerned officer or authority as a last resort.
Following are the reasons for issuing GST notices by the Department
- Mismatch in details reported between GSTR-1 & GSTR-3B: scrutiny notice
- Differences in Input tax credit claims made in GSTR-3B vis-a-vis GSTR-2A
- Delay in filing of GSTR-1 and GSTR-3B consecutively for more than six months
- Inconsistent declaration in GSTR-1 and e-way bill portal
- The Input tax credit is wrongly availed or utilised.
- Inconsistencies in reporting of Exports in GSTR-1 with information available on ICEGATE. GST Refund is wrongly made with or without the intent to defraud: show cause notice (SCN)
- Non-payment of GST liability (tax) or the short-payment of the tax with or without the intent to defraud: show cause notice (SCN)
Precaution to be taken:
- File GSTR-3B very carefully- Avoid causal mistake like typing error/ punching error and feed the data n GSTR-3B very carefully and in the respective column only.
For eg: In one client, one person has mistakenly just put the Purchase figure in ITC column and upload the GSTR-3B, he has received the GST notice in ASMT-10 regarding mismatch between GSTR-3B and GSTR-2A.
- Match Your GSTR-3B with GSTR-2A – If you have followed this regularly then notice in the form of DRC-01 may be avoided. In this notice, officer has asked to reverse the excess credit taken in GSTR-3B along with interest.
- Reconciliation between GSTR-3B & GSTR-1- If there is any difference between these two then try to find it out and make the working of it. Because you can received the notice in the form of ASMT-10 for explaining the difference.
Following are the notices which one can received commonly other than special circumstances
|Name of the Form- Notice||Description||Reply or Action to be taken||Time limit to respond||Consequence of non-response|
|GSTR-3A||Default notice to non-filers of GST returns in GSTR-1 or GSTR-3B||File the particular GST Returns, that is yet to be filed along with late fees for the delay and interest on the GST liability, if any||15 days from the date of receiving notice||Tax is assessed to the best judgment using the information available with the department.
The penalty will be applicable of Rs. 10,000 or 10% of the tax due, whichever is higher.
|REG-03||At the time of verifying the application for GST registration, a notice can be sent requiring the clarification for the information provided in the application or documents needed for verification. Also, the same form for the notice is applicable for amendment of GST registration||Reply letter in REG-04 with clarification or the information||Within 7 working days from the date of receiving the notice||Reject such application and inform the applicant electronically in REG-05.|
|REG-17||Show cause notice why should the GST registration not be cancelled for the reasons laid down in the notice||Reply letter in REG-18 with the reasons for non-cancellation of GST registration||Within 7 working days from the date of receiving the notice||Cancellation of GST registration in REG-19|
|REG-23||Show cause notice why the cancellation of GST registration must be revoked, for the reasons laid down in the notice||Reply letter in REG-24||Within 7 working days from the date of receiving the notice||Cancellation of GST Registration will be revoked|
|ASMT-10||Scrutiny notice -Notice for intimating discrepancies in the GST return after scrutiny along with tax, interest and any other amount payable in relation to such discrepancy, if any||Reply in ASMT-11 giving reasons for discrepancies in the GST returns||Within the time prescribed in the show cause notice or a maximum time of thirty days from the date of service of notice or such deadline notified||Proceed to assess the taxpayer based on information at hand – may lead to prosecution and penalty|
|DRC-01||Show cause Notice for Demand of Tax-
Is issued for demanding tax paid shortly or not paid with or without an intent to defraud. It is served along with a statement of details in DRC-02
|Reply in DRC-03 for paying the amount of tax demanded in the notice along with Interest and penalty*, if any applicable. Use DRC-06 to reply to the show cause notice
*Note: Where no fraud is committed, the penalty is chargeable only if payment is made beyond the thirty days time limit
|Within 30 days of receipt of the notice||Order can be passed with higher penalty or prosecution- within three years from the due date of annual returns for the particular financial year for which tax is demanded|