What we do
GST Related Notices
GST Related Notices
Notices issued by GST authorities are known as GST show-cause notices. These are provided to taxpayers as a form of notification or warning about any identified defaults, particularly for the non-adherence to GST laws. Other times, notices may be issued just to receive increased information. Tax authorities will issue notices if any type of shipping or services is provided rather than being eligible for tax elimination or if taxpayers act suspiciously. They act on any information gained during the verification of the taxpayer’s GST returns and information obtained from other government departments or third parties.
Depending on the reason or degree of the default or action requested from the taxpayer, a notice may be referred to as a show-cause notice in GST, demand notice, or scrutiny notice.
Request and collection can be started for brief, non-levy, short-paid, unpaid, incorrect reimbursement, unsuitable availability, and faulty utilisation of input tax credit. All demand and recovery actions for GST begin with issuing a GST show-cause notice.
Show Cause Notice in GST
It can be given for a variety of reasons, including the cancellation of registration or denial of a refund claim.
Show Cause Notice Under Section 73, Section 74, Section 76.
When an officer feels that any of the following situations involving GST income or payment for the government have occurred, this notice can be issued under GST:
- Non-levy or short levy
- Not compensated or underpaid
- Incorrect refund
- Incorrect application of the input tax credit
A show-cause notice in GST is a court order that asks a party to appear in court and explain why a particular course of action should not be pursued against them. This line of action is adopted if the party cannot persuade the court or fails to appear.
In several cases, the Supreme Court and high courts have condemned the practice of hearing writ petitions challenging the constitutionality of show cause notices, prolonging investigations and delaying the discovery of actual facts with the parties’ participation.
REPLY TO GST NOTICES
Any reply to the GST notices can be submitted online on the GST portal. A taxpayer can use the digital signature or e-signature of the authorised personnel of such taxpayer or himself. Where the payment of tax and interest is required, pay such liability in the requisite form and manner. After such payment, the reply letter in requisite form must be submitted before the tax authority who sent notice.
In case the taxpayer receiving the GST notices does not reply within the stipulated time limit, he shall be liable for penalties and further proceedings as each case demands under the GST law.
A taxpayer can authorise another representative or a practicing chartered accountant to look into the matters related to GST notices. He can do so, by issuing Letter of Authorisation under GST. GST authorisation letter gives the power of replying to GST notices by another representative and taking action on behalf of him. Contact our GST practitioners at E-TAX HUB INDIA to deal with notice related issues.
