GST Notice

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Reply to GST Notices

GST Notices : What is Notice & Types of Notices

GST Notices can be of many types- Show cause notice, Demand notice and scrutiny notice to mention a few. This article is an overview of all types of notices under GST and the options available for the taxpayer.

What is Notice under GST

Notices under GST are communications by the GST Authorities. These are sent to the taxpayers specifically to remind or caution them of any defaults being noticed, specifically for not following the GST laws. In other cases, notices can be sent out just to collect more information from the taxpayer. Few cases where tax authorities send out notices are – where any movement of goods/ provision of services occurs without coming under tax lens or taxpayers operate suspiciously. GST authorities act based on any hints collected on verifying the taxpayer’s GST Returns or received from another Government department or from any third parties . 

A notice can be called by different names like show cause notice (SCN), scrutiny notice or the demand notices, depending upon each case- the purpose or gravity of default or action required from the taxpayer. The common grounds for receiving notices under GST are lapses on the part of the taxpayers such as not registering under GST when otherwise required under law, non-filing or any delay in filing of GST returns, non-payment of GST or short payment of GST, excess Input tax credit claims, etc. 

A taxpayer must promptly act or reply to notices within the time limit specified in such notice. Any failure to do so can land the taxpayer in a legal soup. In such eventuality, the authorities can proceed to prosecution or consider that as a willful default and charge penalty.  

Latest Updates

11th May 2023
The department has launched the automated return scrutiny module from FY 2019-20 onwards for GST officers. The system aims to run automated checks to shortlist GSTINs/returns that will be scrutinised. 

27th December 2022

Circular 185/17/2022-GST issued on 27th December 2022 clarified how and by when the tax officers can re-determine the tax, interest and penalty demand where there is no proper evidence of fraud, as a no-fraud case.

05th July 2022
The department issued a notification no 13/2022 to extend the time limit u/s 168A up to 30th September 2023. This section enables tax officers to issue demand orders to taxpayers (non-fraud cases) for unpaid or underpaid taxes, interest, fees, and penalties. 

Moreover, the pandemic period between 1st March 2020 and 28th February 2022 must be excluded to arrive at the limitation period for issuing a demand order under this provision.

21st December 2021
The officer can issue notice u/s 74 to multiple persons for tax short paid or excess ITC claims by fraud. Now, it is amended that the officer can confiscate and seize goods or vehicles even after concluding proceedings against all persons liable to pay specific or general penalties. 

Most common reasons for GST Notices

  • Mismatch in details reported between GSTR-1 & GSTR-3B: scrutiny notice
  • Differences in Input tax credit claims made in GSTR-3B vis-a-vis GSTR-2B/2A
  • Delay in filing of GSTR-1 and GSTR-3B consecutively for more than six months
  • Inconsistent declaration in GSTR-1 and e-way bill portal
  • Non-reduction of prices due to reduced GST Rates with effect from the date notified by CBIC. Thereby, a default is committed by taxpayer (seller) for non-passing of the benefit of reduced prices (or GST rates) to the ultimate consumers. The practice is known as profiteering. Several anti-profiteering measures are taken by GST authorities to address the default.
  • Non-payment of GST liability (tax) or the short-payment of the tax with or without the intent to defraud: show cause notice (SCN)
  • GST Refund is wrongly made with or without the intent to defraud: show cause notice (SCN)
  • The Input tax credit is wrongly availed or utilised.
  • Where a business is liable but has failed to obtain GST registration and not discharged the tax and other liabilities under the GST Act
  • Inconsistencies in reporting of Exports in GSTR-1 with information available on  ICEGATE. For example, Shipping Bill or the Bill of export lodged on ICEGATE but not reported in GSTR-1
  • For furnishing any information related to records to be maintained by a taxpayer
  • Conduct of the audit by tax authorities
  • Where information return was required to be furnished before tax authorities, but not submitted within the time limit stipulated.

Types of Notices under GST law

A quick guide on the different types of notices that can be received by the taxpayers, action to be taken by such taxpayers and time limit to respond to notice is available below:  

Valid modes of sending GST Notices

Section 169 of the CGST Act states the different means of communicating the notices under GST. Any other mode of sending out the notice will not be valid under the law.   Taxpayers must note the different modes of getting notices can be as follows:

  • Hand-delivering the notice either directly or by a messenger by a courier to the taxpayer or his representative.
  • By registered post or a speed post or a courier with an acknowledgement- addressed to the last known place of the business of the taxpayer.
  • Communication to the email address  
  • Making it available on the GST portal after logging in.
  • By publication in a regional newspaper being circulated in the locality- that of the taxpayer based on the last known residential address.
  • If none of the above means is used, then by affixing it in some prominent place at his last known place of business or residence. If this is not found as reasonable by the tax authorities, they can affix a copy on the notice board of the office of the concerned officer or authority as a last resort.

The taxpayer need not act upon the notice or communication if it is received in any other modes apart from what is notified by GST law from time-to-time.

Reply to GST Notices & effects of not replying

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 practising 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. 

Connect2Business offers comprehensive solutions for responding to GST (Goods and Services Tax) Demand Notices and Scrutiny Notices. Our expert team is dedicated to helping you navigate the complexities of tax compliance and ensuring your business remains on the right side of the law.

  • A health check summary
  • GST returns filing status
  • GSTR-1 vs GSTR-3B report (tax difference)
  • GSTR-3B vs GSTR-2A report (ITC difference)
  • Vendor Compliance report


A GST Demand Notice is issued by tax authorities when there is a discrepancy in tax payments or filings. A Scrutiny Notice is sent to scrutinize a taxpayer’s financial records for accuracy and compliance.

Solution: Connect2Business conducts a thorough analysis of the notice and provides tailored responses, addressing specific discrepancies, and ensuring compliance.


It’s crucial to respond promptly and accurately. Ignoring the notice can lead to legal consequences. Seek professional assistance immediately.

Solution: Contact Connect2Business for expert guidance. We handle the entire process, from notice assessment to crafting and submitting a comprehensive response.

Connect2Business offers a complete solution, including notice assessment, data compilation, legal expertise, customized responses, timely submissions, communication with authorities, and follow-up for issue resolution.

Solution: We ensure your response is accurate, well-documented, and compliant, minimizing any financial burden on your business.

Typically, you’ll need financial records, invoices, transaction details, and other relevant documents. The specific requirements vary based on the notice.

Solution: Connect2Business assists in compiling all necessary documents, ensuring your response is comprehensive and addresses all concerns raised in the notice

Yes, our team of experts manages all communication with tax authorities, ensuring a professional and timely exchange of information.

Solution: We act as your representative, handling all dialogue with tax authorities, allowing you to focus on your business operations.

Missing the deadline can lead to additional penalties and legal complications. It’s crucial to submit a timely response.

Solution: Connect2Business ensures your response is submitted promptly, preventing further financial implications and legal issues.

The duration varies based on the complexity of the notice and the specific case. Our team works efficiently to resolve the issue as quickly as possible.

Solution: We prioritize swift resolution while ensuring accuracy and compliance in every step of the process.

Facing a GST Demand Notice or Scrutiny Notice can be daunting, but with Connect2Business, you can navigate the process confidently. Our expert team is dedicated to providing personalized solutions, ensuring your business remains compliant with GST regulations while minimizing any adverse financial impact.

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CA Divyansh Agarwal

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