Home > GST Home > GST Help Center > GST Notice TypesLast Updated: Jan 09th 2020

Notice from GST Department ? Top Reasons, Response, Timing

With increased GST Tax fraud, decreased GST Revenue, the Government of India increased scruitiny on the GST Compliance. Notices sent due to Tax evasion, non-compliance in rates, late filings, missing, wrong invoices, eWay Bill mismatch, non-payment are some of the common reasons for receiving Notice.

It is important to understand what are different notices that a business or a professional receive and it's timing, impact, and response times to the Tax Officials.

GST Notices Explained

Top 10 reasons for getting a GST Notice ?

There are many reasons for GST registered taxpayer to get a GST Notice, some may be due to non-compliance and others may be due to routine audit by the tax officials, hence not all notices are severe in nature. The top 10 reasons for getting a GST Notice are listed below.

  1. Non-filing or delayed filing of GST Returns. (most common)
  2. Insufficient, worng documentation supplied at the time of GST Registration
  3. Revocation Request for a Closed GST Number
  4. Mismatch between Purchase side (inward) invoices and the GSTR 2A report from GST Portal
  5. Wrong ITC Claim in the Returns
  6. Non-payment of Taxes
  7. Mismatch between GSTR1 Invoices and the details in e-Way Bills
  8. ITC Credit Refund
  9. Not having GST Registration though the turnover crosses the threshold.
  10. Higher GST rates applied on Sales (Profiteering)

List of Notices - Definition, What to do and When ?

A service should be classified as OIDAR service only if the following two conditions are satisfied

Notice TypeDescriptionResponseResponse Time
 GSTR-3ANotice to non-filers of GST Returns. This is the most common of all notices. Applicable for GSTR-1, GSTR-3B, GSTR-4, GSTR-8 (only for eCommerce Operators)Prepare & eFile specific GST Returns that are due along with late fees, interest on the GST liability, if any.per notice or within 15 days of notice date. (Team @ EZTax.in observed that this could be 7 days also in some cases.)
REG-03Clarification Notice raised to show or upload additional documentation to complete a new GST registration, or amendment to an exisiting GST registration (core field updates etc.)Furnish a clarification to the notice in REG-04 with clarification or uploading additional information / documentation requestedGenerally 7 days of notice date
CMP-05Show cause notice to Question the eligibility of a taxpayer to be a composition dealerJustify along with reasons as to why the taxpayer should still be eligible for the composition scheme per the sector they were in and the revenue they holdper notice or within 15 days
REG-17Show cause notice why should the GST registration not be cancelled for the reasons laid down in the noticeFurnish a clarification against the notice in REG-18 with the reasons for non-cancellation of GST registration and upload any supporting documents that were requested in the Notice.per notice or within 7 days
REG-23Show cause notice why the cancellation of GST registration must be revoked, for the reasons laid down in the noticeFurnish a clarification to the notice in REG-24per notice or within 7 days
REG-27In case of migration into GST by taxpayers of the VAT regime, a notice can be issued in REG-26 within the time limit prescribed, for not making application after obtaining provisional registration or not giving correct or complete details thereinReply by applying in REG-26 and appear before the tax authority giving reasonable opportunity to be heardper Notice
Most migrations are already completed. This may be rare notice.
PCT-03Show cause notice for misconduct by the GST practitionerFollow the instructions and reply to the show cause notice.as per notice
RFD-08Show cause notice as to why the GST refund must not be made to the applicant (taxpayer)Furnish a clarification to the notice using RFD-09 and follow the instructions as per Tax Notice.per notice or within 15 days
ASMT-02Notice for Seeking Additional Information for provisional assessment under GSTFurnish a clarification to the notice in ASMT-03 along with supporting documents per notice.per notice or within 15 days
ASMT-06Notice for seeking additional information for Final assessment under GST (for those who applied for provisional assessment)Supply additional information required per Tax Noticeper notice or within 15 days
ASMT-10Scrutiny notice for intimating discrepancies in the GST return after scrutiny or a raid along with tax, penalty, interest and any other amount payable in relation to such discrepancy, if anyRespond using ASMT-11 by giving reasons for discrepancies in the GST returnsper notice
ASMT-14Show cause Notice for assessment u/s 63 - reasons for conducting the assessment on a best judgment basisReply in written form & if required appear before the GST authority issuing such noticeper notice or within 15 days
 ADT-01Notice for conducting audit by Tax authority u/s 65Attend in person as directed in the notice or produce GST Certificate, Entity Certificate, Sales, Purchase Invoices, GST Return documentsas per Notice
RVN-01Notice u/s 108 is issued to the taxpayer by the revisional authority before passing the revision order of appeals, giving the opportunity of being heard. Order of revision is usually passed to fix errors in order for appeals passed u/s 108Reply within the prescribed time and/or appear before the GST authority passing the order of revision on a given date and timeper notice or within 7 days
DRC-01Show 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-02Reply in DRC-03 for paying the amount of tax demanded in the notice along with Interest and penalty, if applicable. Use DRC-06 to reply to the show cause notice.per notice or 30 days
DRC-10 & DRC-17Notice of Auction of Goods u/s 79(1)(b) of the Act- Reference to the order of demand will be given, being the order for recovery through specified officer u/s 79 OR through execution of decreeMust be able to pay the outstanding demand as per DRC-09per Notice
DRC-11Notice to the successful bidderPay the full bid amountper notice or within 15 days
DRC-13Notice of Recovery of outstanding tax from a third personDeposit the amount specified in the notice and reply in DRC-14per notice
 DRC-16Notice for attachment and sale of immovable/movable goods/shares u/s 79A taxpayer receiving this notice is prohibited from transferring or creating a charge on the said goods in any way and any transfer or charge created by you shall be invalidper notice

Consequences of not responding to GST Notices ?

GST registered taxpayer who received a notice must act to respond to the notice, if not the consequences could be severe and may be any of the folllowing

  • Rejection of a new GST Registration
  • Cancellation of GST Registration
  • Recovery of Tax Liabilities directly from a Bank (this is the most scariest part of all)
  • Rejection of Refund
  • Seizure of Assets
  • Assets Auction
  • Monetary Penalty
  • In most cases, there would be a penalty for non-filing / delayed filing / mis-representation, additionally interest being levied on the tax due.

What to do ?

Notices in general is critical to respond in a timely fashion. GST is still a moving target as the law, applicability, practicality being changed almost every week (this article was originally published on Jan 2020). It is very important to address the GST Notices with the help of a professional, unless it is a slam dunck.

EZTax.in GST Team is ready to help in handling your GST Notice quickly, professionally. We are meant for that, afterall we are the highest reviewed Tax Compliance Company in India.

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