How to Handle GST Notices from the Tax Department

Imagine, it’s Monday morning you are sipping your coffee with some snacks, scrolling through business updates, and suddenly a GST notice bangs on into your mailbox. Panic takes over, and anxiety sets in- right? Questions like did I miss filing deadlines, will the tax officer scrutinize my business records, did I make any mistake while filing returns, and more- start flooding your mind. 

Before you turn the panic mode on, just take a deep breath in! Notices under GST are more common than they look like. How you respond to these notices outlines a difference between seamless resolution and a financial nightmare. Over the years, we have seen big and small businesses grapple with these notices with some minor discrepancies or even serious compliance lapses. 
Take a closer look into GST insights, learn how to reply to GST notices without unnecessary stress, and learn some expert tips that will guide you in handling these notices seamlessly! Read the article to handle notices like a pro, avoid penalties, and stay ahead of compliance risks.

Before we dive in to understand how to respond to the notices, let’s check out reasons for receiving GST notice!

Why Have You Received a GST Notice- 7 Reasons You Shouldn’t Miss! 

1. Mismatched GST Returns:

Discrepancies reported between GSTR-1 (sales return) and GSTR-3B (summary returns) or between GSTR-2A (auto-populated purchase return) and actual input tax credit (ITC) claimed. 

2. Delayed or Failed to File Returns:

Have you missed filing returns? Missing out even a single month can get you caught with the GST notice.  

3. Excess Input Tax Credit (ITC) Claims:

Claimed ITCs do not match supplier filings. Review it because submitting them the same way will lead you to GST troubles as the department will flag it. 

4. E-way Bill Violations:

Do you often miss out on e-way bills for transported goods? Make a note: Every missed e-way bill can trigger notices under GST.

5. Tax Evasion Suspicions:

Ever done sales underreporting or just misclassified goods or service? Claimed fraudulent ITCs? If yes, stop doing so! Tax officials keep an eye on all these discrepancies which will cause you heavy loss and your mailbox will pop-up with tax evasion notice. 

6. Refund Clarifications:

Claimed a GST refund? The department might ask for supporting documents to process it. 

If you haven’t claimed your GST refund yet, learn the complete process here: How to Claim GST Refund.

7. Random Scrutiny:

If you see a GST notice in your mail box, don’t panic. At times the tax evasion notice is sent just as part of routine audits. 

How to Reply GST Notice Like a Pro? – Take a 5 Mins Read! 

This section will guide to types of notices under GST, how to reply to them, response time, and consequences. Let’s see more detail

Sr. No	GST Notice Type	Why Have You Received the Tax Notice?	How to Reply GST Notice?	When should you Respond?	What happens if you don’t respond?
1	GSTR-3A	You failed to file GST returns in GSTR-1, GSTR-3B, GSTR-4 or GSTR-8	File the GST returns you have failed to file. Also, don’t forget to pay late fees applicable on the delay and interest charged on GST liabilities, if any.	Respond within 15 days from the day you have received the tax evasion notice.	If you fail to reply, you may be charged ₹10,000, or 10% of the unpaid tax amount whichever is higher.
2	CMP-05	It’s a show cause notice that questions your eligibility to be a composition dealer	Share a response that justifies why you are eligible for the composition scheme	The response should be given within 15 days after you have received the GST notice.	This applies penalty under section 122 and order in CMP-07 that forbids the taxpayers from leveraging the composition scheme
3	REG-03	While verifying your GST application, the tax officials might send notices under GST that request a clear classification of details provided in the form. It also requests for document verification through the notice.	Share the response in REG-04 with clarification or details	The GST notice should be shared within 7 working days from the date of receiving the notice.	Your GST application will get rejected and you will receive the notice electronically in REG-05
4	REG-17	It’s a show cause notice that asks why your GST registration shouldn’t be cancelled for the reasons given in the notices under GST	Share a response in REG-18 giving the reasons why your GST registration shouldn’t be cancelled	The GST notice should be responded to between 7 working days from the date you have received the notice.	Your GST registration stands cancelled in REG-19
5	REG-23	This is again a show cause notice on why your GST cancellation should be revoked for the cancellation reasons mentioned in the notice	Explain the reasons why your GST cancellations should be revoked in REG-24	Give the response within 7 working days of receiving the notice	GST cancellation should be revoked
6	REG-27	You will receive a GST notice in REG-26 within the time limit prescribed for migrating into GST by the taxpayers of the VAT regime. You will receive this notice for not making an application post obtaining the provisional registration or for sharing incomplete information.	Reply in REG-26 and give reasons to the tax authority availing the opportunity to be heard	There’s no time limit	Cancellation of provisional registration in REG-28
7	PCT-03	It’s a show cause notice you have received for the misconduct of GST clause	Explain the reasons for misconduct	This notice comes with prescribe time limit, reply within the deadline	Failing to reply leads to cancellation of GST license as practitioner
8	RFD-08	This is a show cause notice as to why the taxpayer is not liable to receive the GST refund	Share a response in RFD-09	Respond within 15 days of receiving the notice	You will receive order in RFD-06 saying your GST refund application is rejected
9	ASMT-02	This GST notice seeks additional details for provisional assessment under GST	Respond the notice in ASMT-03 along with all the required documents	Reply within 15 days of receiving the tax evasion notice	Your provisional assessment application will get rejected
10	ASMT-06	Seek additional details for final assessment under GST	Share all the required information for final assessment	Reply within 15 days of receiving the notice	ASMT-07 will be directly passed without considering the taxpayer assessment
11	ASMT-10	It’s a scrutiny notice that intimates discrepancies in the returns post inspection along with the tax, interest, and amounts payable with regards to errors	Respond to ASMT-11 and share reasons for discrepancies in the GST returns	Generally, the time limit is specified in the notice and if not, the response time is valid for 30 days from the date of receiving the notice	Assessing the taxpayer on the basis of details shared can cause prosecution and penalty
12	ASMT-14	It’s a cause showing notice under section-63 used for assessment on the judgment basis	Give the response in written and appear before the Tax officials who have sent the GST notice	Reply within 15 days	Assessment order in ASMT-15 will not approve the assesse
13	ADT-01	This GST notice is issued by the tax authority to conduct audit under section 65	Appear in front of the tax officials as notified in the notice	The time limit is given in the notice	Failing to respond leads to assumptions
14	RVN-01	Taxpayers receive the notice under section 108 which is passed by the revisional authority before issuing the revision order offering a chance to be heard. Order of revision is generally issued to resolve issues under the appeals passed in section-108	Reply before the prescribed time limit and appear in front of the tax officials as given in the notice	Reply within 7 working days from the date of issuing the notice	The situation will ex parte based on the records and merits
15	Enquiry Notice by Directorate of Anti-profiteering	This notice is issued when the supplier fails to pass on the ITC perks to the consumer and the proceedings will begin by directorate of anti-profiteering	Co-operate with the officials in all the proceedings and give evidence if needed	The time limit is specified in the GST notice	Proceedings will begin ex parte based on proof available
16	DRC-01	It’s a show cause notice for Tax Demand issued for asking for taxes paid or unpaid without intentions to deceive the law. This notice under GST is served along with the details in DRC-02	Share response in DRC-03 for tax amount demanded in the notice along with the penalty and interest applied. Reply the show cause notice with DRC-06	Reply with 60 days after receiving the notice	Order will be passed with higher penalty within 3 years from the annual return due date for the particular financial year for which tax is demanded
17	DRC-10 & DRC-17	Notice of auction of Goods under section-79(1)(b) of the act reference to demand order will be shared which turns to be the order of recovery through the tax officer	Pay the outstanding demand depending on DRC-09	The time limit is specified in the GST notice. Take a note that the last day of bidding is not before 15 days of receiving the notice	Auction and sale begins
18	DRC-11	Notice issued to a successful bidder	Pay the entire bid amount	The time limit is 15 days from the date of auction	A re-auction will be conducted
19	DRC-13	Recovery notice of outstanding tax from a 3rd person	Share response in DRC-14 and deposit the amount given in the notice under GST	Time limit doesn’t apply	Considered to be a defaulter with regard to the amount mentioned in the notice and can be levied with penalties
20	DRC-16	You have received this notice for attachment and sale of movable or immovable goods / shares in section-79	The taxpayer is prohibited from transferring or issuing a charge on specified goods. If done, the transfer stands invalid.	Not Applicable	The violation of this notice under GST leads to prosecution and penalties

Taxman Calling? Here’s How to Reply – 5 Expert Tips!

Wrap up! 

Handling GST notices can feel traumatizing, but a right strategy will help you navigate seamlessly and avoid unnecessary prosecutions. The only way to avoid these consequences is to maintain precision in records, and respond professionally with structured explanations and evidence. If you have any query, do connect us for expert advice. 

Do you want to avoid GST hustles and receive notice under GST? Try Munim GST return Filing right away! Sign up now! 

FAQs 

1. What is show cause notice in GST? 

A Show Cause Notice (SCN) serves as a formal communication document sent by the GST authorities to the taxpayers asking them to justify actions which have violated GST laws. 

2. How to check GST Notice? 

• Go to www.gst.gov.in 
• Login with your credentials 
• Navigate to Dashboard > Services > User Services > View Notices / Orders 

3. What happens when notice under GST is issued? 

The GST notice is sent to the taxpayers to caution them against the defaults being observed for not following the GST laws. 

4. How do I avoid GST Notice? 

• File Returns on time 
• Make sure details are accurate 
• Give documents for evidence 
• Take professional advice 
• Use GST software for return filing