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Types of Notices under GST- Why, What and When

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Types of Notices under GST- Why, What and When

Have you ever received a notice from the government or the GST officials and were unsure of what steps to take under such circumstances?

Relax, we have you covered.

The government or the GST officials often send notice to registered taxpayers pertaining to any non-compliance or oversight in their GST returns. Some of the most common reasons of such notices include,

  • Mismatching details in inward ( as per GSTR 2A)and outward (as declared in GSTR 1) summary i.e., ITC and Tax liabilities details respectively.
  • Delayed Return filing
  • Mismatch between EWB portal and for GSTR 1
  • Profiteering
  • Faulty claim of ITC
  • Failure to obtain GST Registration
  • Inconsistency in return compliance
  • Non-Payment of tax liabilities.

Under such circumstances, the government/GST officials may send you a notice form as applicable.

Types of notices under GST

GSTR-3A

What/Why
Default notice to non-filers of GST returns in GSTR-1 or GSTR-3B or GSTR-4 or GSTR-8

What to do:
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

When:
Within 15 days of receiving notice

CMP-05

What/Why
Show-cause notice to Question the eligibility of a taxpayer to be a composition dealer

What to do:
Justify along with reasons as to why the taxpayer should still be eligible for the composition scheme

When:
Within 15 days of receiving notice

REG-03

What/Why
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

What to do
Assesse needs to furnish a clarification to the notice in REG-04 with clarification or the information

When

Within 7 working days of receiving notice

REG-17

What/Why
Show cause notice why should the GST registration not be cancelled for the reasons laid down in the notice

What to do
Assesse needs to furnish a clarification to the notice in REG-18 with the reasons for non-cancellation of GST registration

When
Within 7 working days of receiving notice

REG-23

What/Why
Show cause notice why the cancellation of GST registration must be revoked, for the reasons laid down in the notice

What to do
Assesse needs to furnish a clarification to the notice in REG-24

When:
Within 7 working days of receiving notice

REG-27

What/Why
In 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 therein

What to do
Reply by applying in REG-26 and appear before the tax authority giving reasonable opportunity to be heard

When
Not yet prescribed

PCT-03

What/Why
Show-cause notice for misconduct by the GST practitioner

What to do
Reply within the time prescribed in the show cause notice

When
As prescribed in the show-cause notice

RFD-08

What/Why
Show cause notice as to why the GST refund must not be made to the applicant (taxpayer)

What to do
Assesse needs to furnish a clarification to the notice in RFD-09

When
Within 15 days of receiving notice

ASMT-02

What/Why
Notice for Seeking Additional Information for provisional assessment under GST

What to do
Assesse needs to furnish a clarification to the notice in ASMT-03 along with documents

Read here to know more https://blog.irisgst.com/9-answers-to-the-most-frequently-asked-questions-about-provisional-assessment-in-gst-1/

When
Within 15 days of receiving notice

ASMT-06 Read here to know more: https://blog.irisgst.com/9-answers-to-the-most-frequently-asked-questions-about-provisional-assessment-in-gst-1/

What/Why
Notice for seeking additional information for Final assessment under GST (for those who applied for provisional assessment)

What to do:
Reply in 15 days of receipt of the notice

When:
Within 15 days of receiving notice

ASMT-10

What/Why
 Scrutiny 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

What to do
Reply in ASMT-11 giving reasons for discrepancies in the GST returns

When
As prescribed in show-cause notice or within 30 days of receiving the notice.

ASMT-14

What/Why
Show Cause Notice for assessment under section 63- reasons for conducting the assessment on the best judgment basis               

What to do
Reply in written form and appear before the GST authority issuing the notice    

When
Within 15 days of receiving notice

ADT-01

What/Why
Notice for conducting audit by Tax authority under Section 65   

What to do
Attend in person as directed in the notice or produce records   

When
As prescribed in the show-cause notice

RVN-01

What/Why
Notice under section 108 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 under section 108        

What to do
Reply within the prescribed time and/or appear before the GST authority passing the order of revision on a given date and time      

When
Within 7 working days of receiving notice

Notice of Enquiry by Directorate of Anti-profiteering   

What/Why
In cases where the supplier has not passed on the benefit of ITC/reduced GST rates to the recipient/consumer, proceedings may be initiated by the Directorate of anti-profiteering. All interested parties will get a notice asking for more details.

What to do
Cooperate in the proceedings and provide evidence, if any        

When
As prescribed in the notice

DRC-01

What/Why
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

What to do
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.

P.S: In case where no fraud is committed, the penalty is chargeable only if payment is made beyond the thirty days’ time limit

When
Within 30 days of receipt of the notice  

DRC-10 and DRC-17

What/Why
Notice of Auction of Goods under section 79(1)(b) of the Act- Reference to the order of demand will be given, being the order for recovery through specified officer under section 79 OR through execution of decree

What to do
Must be able to pay the outstanding demand as per DRC-09

When
As prescribed in the notice

DRC-11

What/Why
Notice to the successful bidder

What to do
Pay the full bid amount

When
Within the 15 days from the date of the auction               

DRC-13

What/Why
Notice of Recovery of outstanding tax from a third person          

What to do
Deposit the amount specified in the notice and reply in DRC-14

When
NA

DRC-16

What/Why
Notice for attachment and sale of immovable/movable goods/shares under section 79

What to do
A 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 invalid

When
NA

Penal provisions for not replying to the official Notice

If a registered taxpayer does not take any action in the given time for the GST notice received, he can be subjected to penalties, confiscation and further proceedings as applicable under the GST law.

These penal provisions can be,

  • Cancellation of GST registration
  • Rejection of application
  • Monetary Penalty
  • Rejection of Refund application
  • Auction
  • Seizure of goods and property
  • Recovery of GST liabilities

Thus, we recommend you, if you have receive a notice, kindly take an appropriate action within the given time, while ensuring  such negligence, misstep or delayed filing of GST returns are not repeated.

IRIS GST is one of the leading GSPs in India. Our GST compliance solution, IRIS Sapphire, is designed to make your return preparation and filing process easy and efficient.

For any queries or to book a demo, please write to support@irisgst.com .

About Anushree Joshi

Anushree

Anushree Joshi is a Senior Domain Specialist in IRIS GST team and is responsible for product development and customer success. She is a Chartered Accountant, Cost & Management Accountant and have been associated with IRIS for 7+ yrs. Prior to joining the IRIS GST team, she was part of the IRIS US SEC XBRL team, helping listed companies in US file their annual reports in IFRS and US GAAP. She enjoys reading and a Kathak (Indian classical dance) enthusiast.

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karthik 2 months, 4 weeks ago

Good Information, Thanks a lot.

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