GST notices are a form of direct contact between the GST administration and taxpayers. Taxpayers should take GST notifications seriously and follow the instructions in the notice to the letter. If GST notices are disregarded for an extended period of time, taxpayers may be subject to monetary penalties.
We will examine the many causes for the issuing of GST notifications in this brief essay, as well as present you with the various sorts of GST notices that are sent to taxpayers. We’ll also go through the process for responding to big GST notices.
Some of the most common causes for obtaining a GST notification include:
– Liable, but has neglected to register for GST.
– More than six-month delay in submitting GSTR-1 and GSTR-3B sequentially – Mismatch in details provided on GSTR-1 and GSTR-3B
– Inconsistent GSTR-1 and e-way bill site declarations
– Differences between GSTR-3B and GSTR-2A requests for input tax credits
– With or without intent to deceive, non-payment of GST liability/short-payment of tax – GST Refunds incorrectly claimed with or without intent to deceive – Anti-profiteering – Prices not dropped owing to lower GST rates
– An information return was necessary to be filed with the tax authorities, but it was not submitted within the deadline.
The list of Notices issued under the GST legislation is as follows.
|No||Notice name||CGST Act/Regulations||Description||Action to be taken||Time limit to reply||Consequences of Failure to Respond|
|1||REG-03||Rule 9(2)||Clarification of the information supplied in the new registration application or GST registration update is necessary.||Return the form REG-04 with any clarifications, information, or documents, if applicable||Within seven (7) working days of receiving the notification||Rejection of the application (tell the applicant through email using the REG-05 form).|
|2||REG-17||Rule 22(1)||Why should the GST registration not be terminated, SCNon?||Return the form REG-18, together with the reasons for your response.||Within seven (7) working days of receiving the notification||GST registration cancellation (receipt of form REG-19)|
|3||REG-23||Rule 23(3)||For the grounds stated in the notice, the cancellation of GST registration must be reversed.||Respond through form REG-24.||Within seven (7) working days of receiving the notification||GST to be repealed The registration will be cancelled.|
|4||REG-27||Rule 24(3)||For situations involving the transition from the VAT to the GST regime, for failing to file an application after receiving provisional registration, or for failing to provide accurate or complete information therein.||Respond by filing a REG-26 application and appearing before the tax authorities with a reasonable opportunity to be heard.||None||Cancellation of provisional registration (using REG-28 form)|
|5||GSTR- 3A||Rule 68||Non-filers of GST returns in GSTR-1, GSTR-3B, GSTR-4, or GSTR-8 would receive a default notice.||Returns for GST, as well as late fines and interest, if applicable, must be filed.||15 days from the date of notification||The Department’s evaluation is based on its best judgement, and it includes a penalty under section 122.|
|6||CMP-05||Rule 6(4)||SCN on the requirements for becoming a composition dealer||Justification in CMP-06 form.||15 days of receipt of the notification||Penalty u/s 122 plus order (in form CMP-07) refusing the benefit of the scheme|
|7||PCT-03||Rule 83(4)||SCN for the GST practitioner’s misbehavior||Justification is required.||Within the time frame set forth in the SCN||The license as a GST practitioner has been revoked.|
|8||RFD-08||Rule 92(3)||SCN issued in response to the rejection of a GST refund.||RFD-09 is the form to use to respond.||After receiving the notification, you have 15 days to respond.||Order of rejection (in the form RFD-06)|
|9||ASMT-02||Rule 98(2)||Additional information for the GST provisional assessment||Response (in the form ASMT-03, with supporting papers)||Within 15 days of the notification being served||It is possible that your application may be denied.|
|10||ASMT – 06||Rule 98(5)||Additional information for the GST final assessment||Response (in the form ASMT-03, with supporting papers)||Within 15 days of the notification being served||Ex-parte orders in the type ASMT-07 are possible.|
|11||ASMT-10||Rule 99(1)||After verification of the GST return, a notice is sent for informing inconsistencies.||Return the form ASMT-11 with an explanation of the differences||Within the time limits set out in the SCN, or within 30 days after receiving the notification, whichever comes first.||Ex-parte evaluation|
|12||ASMT-14||Rule 100(2)||Assessment u/s 63 (best judgment assessment) for SCN||Appearance in front of the appropriate authority||After receiving the notification, you have 15 days to respond.||Form ASMT-15, Assessment Order|
|13||ADT-01||Rule 101(2)||Notice of Audit Pursuant to Section 65||Attend in person and/or provide documentation||Within the time frame set forth in the notification||It is presumed that the taxpayer lacks the required records, and legal action will be taken as a result.|
|14||RVN-01||Rule 109B||The provisional authority has issued a notice under section 108.||Respond within the timeframe specified and/or appear in front of the authorities.||Within 7 working days of the notification being served||Ex-parte decision|
|15||DRC-01||Rule 100(2) & Rule 142(1)(a)||SCN for tax demand’ (served along with DRC-02)||DRC-06 is the form to use to respond. Form DRC-03 is used to make a payment.||After receiving the notification, you have 30 days to respond.||The order was completed with the information that was provided.|
|16||DRC 10||Rule 144(2)||Auction of Goods’ Notice u/s 79(1) (b)||Pay the outstanding demand using the DRC-09 form.||According to the notification||Continue with the auction and sale.|
|17||DRC-11||Rule 144(5) & Rule 147(12)||The successful bidder will be notified.||Pay the sum of the bid.||Within 15 days of the auction’s conclusion||Re-auction`|
|18||DRC-13||Rule 145(1)||DRC-13 Rule 145(1) Notification to a third party according to section 79(1) (c)||Fill out form DRC-14 and deposit the amount mentioned in the notification.||This is not applicable||Considered a defaulter|
|19||DRC 16||Rule 147(1)& Rule 151(1)||Notice for attachment of sale of immovable /movable goods/ shares u/s 79||Refrain from transferring/ creating charges on the asset||Not applicable||Prosecution and penalties|
A taxpayer is required to act or respond to notifications within the time frame provided in the notice. Failure to do so might place the taxpayer in hot water with the law. In such a case, the authorities can take action and apply punitive measures, including but not limited to both a punishment and a prosecution.
GST Notices are issued for a variety of reasons.
- GSTR-1 and GSTR-3B information are out of sync: a scrutiny notice has been issued.
- Differences between GSTR-3B and GSTR-3A applications for input tax credits GSTR-2A
- For more than six months, there has been a delay in filing GSTR-1 and GSTR-3B.
- Inconsistent GSTR-1 and e-way bill site declarations
- Non-discounting of prices owing to lower GST rates, effective as of the CBIC’s notification date. As a result, the taxpayer (seller) commits a default by failing to pass on the advantage of lower prices (or GST rates) to the end consumers. Profiteering is the term for this type of behaviour. GST authorities have implemented a number of anti-profiteering actions in response to the default.
- Show cause notice issued for non-payment of GST liability (tax) or short-payment of tax with or without intent to deceive (SCN)
- When a GST refund is made incorrectly, whether with or without the intent to deceive, a show cause notice is issued (SCN)
- The input tax credit is being taken or used incorrectly.
- Inconsistencies in reporting of exports in GSTR-1 with information accessible on ICEGATE if a firm is entitled but has failed to get GST registration and has not cleared the tax and other liabilities under the GST Act.
- For the purpose of providing any information relating to the records that a taxpayer is required to keep, the tax authorities will conduct an audit.
- When an information return was required to be filed to tax authorities but was not done so within the time frame specified.
As a good practice and quick reaction to the notification, taxpayers are always urged to maintain an eye on the facts provided on the GST site. If an irregularity or error is discovered, the taxpayer should make every effort to make it right in the most recent return. Taxpayers should also reconcile all returns, such as the GSTR 1 turnover with the GSTR 3B turnover and the produced e-way invoices. GSTR 3B also uses ITC reconciliation with GSTR 2A or GSTR 2B.
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