GST Notice

There are different types of GST notices, such as a scrutiny notice, a demand notice, or a notice to show cause. The article provides an overview of all of the different types of notices sent out under GST, as well as the taxpayer’s options.

What is Notice under GST?

GST notices are how the GST authorities communicate with customers. The GST Authorities dispatch these notices to taxpayers to apprise them of any observed defaults, particularly those related to non-compliance with the GST rules. The GST Authorities sometimes send letters to taxpayers to gather more information. Tax authorities rarely issue warnings when they move or provide goods or services without inspection, or when taxpayers behave suspiciously. When GST officials check a taxpayer’s GST Returns or get information from another government department or a third party, they use it to decide what to do.

Depending on the reason for the failure or the action that the taxpayer needs to take, the notice may have different names, such as a demand notice, scrutiny notice, or show cause notice (SCN). People usually get warnings under GST because they haven’t followed the rules. For example, they might not have registered for GST when the law says they should have, they might not have filed their GST returns on time or at all, they might not have paid GST or only paid a small amount, they might have claimed too much Input tax credit, or something else.

A taxpayer has to act or react to notices right away, within the time limit given in the notice. If the user doesn’t do this, they could get in trouble with the law. In this case, the authorities can either bring charges or see it as a deliberate breach of the law and impose a penalty.

Most Common Reasons for GST Notices

• In GSTR-3B, there are differences in input tax credit claims compared to GSTR-2B/2A. GSTR-2B/2A
• The declarations in GSTR-1 and the e-way bill portal are inconsistent.
• If a business is liable under the GST Act but has not obtained GST registration or discharged its tax and other liabilities,
• The details reported in GSTR-1 and GSTR-3B do not match up. a scrutiny notice
• Prices will not go down because GST rates have gone down as of the date that CBIC announced. The taxpayer (seller) breaks the law by not giving the end consumers the benefits of lower prices or GST rates. We refer to those who engage in this as profiteering. To fix this problem, the GST authorities take several steps to stop people from making money.
• It is incorrect to make a GST refund with or without the intent to defraud a show cause notice (SCN).
• The tax authorities required information, but they didn’t submit it within the specified time frame.
• There is a discrepancy between the GSTR-1 export reporting and the statistics available on ICEGATE. For instance, a shipping or export bill that was filed on ICEGATE might not be shown in GSTR-1.
• Someone is incorrectly using or claiming the input tax credit.
• You will receive a show cause notice (SCN) if you fail to pay your GST bill (tax) or pay too little of it, whether you attempt to defraud.
• To provide any details about the records a taxpayer is required to keep.
• The tax authorities are conducting the audit.

Valid Modes of Sending GST Notices

Section 169 of the CGST Act outlines the various methods for sending warnings under GST. The law says that any other way of sending the notice is not acceptable. Taxpayers should be aware that there are various ways to send letters:

• The GST portal becomes accessible once logged in.
• You can send the documents via courier, registered post, or speed post. Send the acknowledgement to the taxpayer’s last known address.
• You can give the taxpayer, or his agent notice in person, by messenger, or by courier.
• Communication to the email address 
• If the other approaches are ineffective, it is a beneficial idea to put it up conspicuously at his last known place of employment or residence. If they consider it unsuitable, the tax authorities may, as a final option, attach a copy to the notice board of the involved officer’s or authority’s office.
• Publication in a local regional newspaper is based on the taxpayer’s last known residential address.

If they receive the notification or communication differently than the GST law notifies them of, the taxpayer doesn’t have to act.

Reply to GST Notices & Effects of Not Replying

You can submit any response to the GST notices online through the GST portal. A taxpayer may use their own digital signature, often known as an e-signature, or the digital signature of their authorized staff. When paying taxes and interest, fulfill your financial obligations in the right way and format. After making the payment, you have to send the reply letter to the tax authority that provided the notice in the appropriate manner.

If the taxpayer receiving the GST notices does not respond within the allotted time, he will be subject to penalties and other legal action as required by the GST law in each individual situation.

A taxpayer may designate a professional chartered accountant or another person to look into GST notices. To accomplish this, he might issue a Letter of Authorization under the GST. A GST authorization letter may help an additional representative respond to GST notices and act on his behalf.