GST Notice

GST Notice Reply

“Expertly Crafted GST Demand Notice and Scrutiny Notice Replies by Connect2Business: Ensuring Compliance and Peace of Mind”

Price Starts  at INR 1499/- only.


Start With Confidence

CA/CS Assisted | 4.8/5 Rating

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:  

Name of the Form- Notice Description Reply or Action to be taken Time limit to respond Consequence of non-response
Default notice to non-filers of GST returns in GSTR-1 or GSTR-3B or GSTR-4 or GSTR-8
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
15 days from the date of receiving notice
Tax is assessed to the best judgment using the information available with the department. The penalty will be applicable of Rs. 10,000 or 10% of the tax due, whichever is higher.
Show cause notice – Questioning the eligibility to be a composition dealer
Must justify reasons as to why the taxpayer should continue to be eligible for the composition scheme
15 days of receipt of the notice
The penalty stipulated under section 122 and order in CMP-07 denying the benefit of composition scheme
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
Reply letter in REG-04 with clarification or the information
Within 7 working days from the date of receiving the notice
Reject such application and inform the applicant electronically in REG-05.
Show cause notice why should the GST registration not be cancelled for the reasons laid down in the notice
Reply letter in REG-18 with the reasons for non-cancellation of GST registration
Within 7 working days from the date of receiving the notice
Cancellation of GST registration in REG-19
Show cause notice why the cancellation of GST registration must be revoked, for the reasons laid down in the notice
Reply letter in REG-24
Within 7 working days from the date of receiving the notice
Cancellation of GST Registration will be revoked
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
Reply by applying in REG-26 and appear before the tax authority giving reasonable opportunity to be heard
None prescribed
Issue the cancellation of provisional registration in REG-28
Show cause notice for misconduct by the GST practitioner
Reply within the time prescribed in the show cause notice
Within the time prescribed in the show cause notice
Order the cancellation of the license as GST practitioner
Show cause notice as to why the GST refund must not be made to the applicant (taxpayer)
Reply letter in RFD-09
Within 15 days of receipt of notice
Make an order in RFD-06 for rejecting the GST Refund application
Notice for Seeking Additional Information for provisional assessment under GST
Reply in ASMT-03 along with documents
Within 15 days from the date of service of this notice
Application for provisional assessment may be rejected
Notice for seeking additional information for Final assessment under GST (for those who applied for provisional assessment)
Reply in 15 days of receipt of the notice
Within 15 days from the date of receipt of this notice
ASMT-07 can be passed without considering the views of taxpayer being assessed
Scrutiny notice -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
Reply in ASMT-11 giving reasons for discrepancies in the GST returns
Within the time prescribed in the show cause notice or a maximum time of thirty days from the date of service of notice or such deadline notified
Proceed to assess the taxpayer based on information at hand – may lead to prosecution and penalty
Show Cause Notice for assessment under section 63- reasons for conducting the assessment on the best judgment basis
Reply in written form and appear before the GST authority issuing the notice
Within 15 days of notice
Assessment order in ASMT-15, may not be favouring the assesses
Notice for conducting audit by Tax authority under Section 65
Attend in person as directed in the notice or produce records
Within the time prescribed in the notice
If not, it is presumed that taxpayer does not possess books of accounts and proceedings will be initiated
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
Reply within the prescribed time and/or appear before the GST authority passing the order of revision on a given date and time
Within 7 working days from the date of service of the notice
The case will be decided ex parte on the basis of available records and on merits
Notice of Enquiry by Directorate of Anti-profiteering
Where the supplier has not passed on the benefit of ITC or 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.
Cooperate in the proceedings and provide evidence, if any
As may be specified in the notice
Proceedings will be initiated ex parte on the basis on available evidence.
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
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 *Note: Where no fraud is committed, the penalty is chargeable only if payment is made beyond the thirty days time limit
Within 30 days of receipt of the notice
Order can be passed with higher penalty or prosecution- within three years from the due date of annual returns for the particular financial year for which tax is demanded
DRC-10 And DRC-17
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 Recovery through execution of decree
Must be able to pay the outstanding demand as per DRC-09
As may be specified in notice before the sale. Note that the last day of the bid or the last day of the auction cannot be before 15 days from the date of issue of the notice
Proceed to e-auction and sale
Notice to the successful bidder
Pay the full bid amount
Within the 15 days from the date of the auction
The proper officer can conduct a re-auction
Notice of Recovery of outstanding tax from a third person
Deposit the amount specified in the notice and reply in DRC-14
Not applicable
Deemed to be a defaulter in respect of the amount specified in the notice and can be subject to prosecution and penalties
Notice for attachment and sale of immovable/movable goods/shares under section 79
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
Not applicable
Any contravention of the notice can invite prosecution and/or penalties

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.


Popular Services

One Person Company | Nidhi Company | Company Registration | Tax Notice | Indian Subsidiary | HSN Code | Section 8 Company | Trademark Search | USA Company Registration | FSSAI Registration | Import Export Code | ESI Registration | Proprietorship | GST Return Filing | Patta Chitta | PF Registration | Payroll | Business Tax Return Filing | PF Return Filing | Eway Bill | GST Registration | TDS Filing | Udyam Registration | Trademark Registration | Startup India Registration | Professional Tax | Personal Tax Filing | Check Company or LLP name Availability

Popular Searches

Partnership | Limited Liability Partnership | Digital Signature | Copyright Registration | Unified Portal | PAN Card Download | Nadakacheri | Flipkart Seller | Caste Certificate | IAY | EPFO Passbook | Domicile Certificate | Udyog Aadhaar | PF Withdrawal | Karnataka One | Encumbrance Certificate | Bonafide Certificate | Instant PAN Card | E PAN Card | Income Certificate | Marriage Certificate | Passport Renewal | Nivesh Mitra | MSME Registration | Experience Certificate | Trademark Status | Trade License | Domicile | eMitra | UAN | PICME | Resignation Letter Format | Ration Card | TNREGINET | RAJSSP | LLP Compliance | Form 16 | Police Clearance Certificate | OBC Certificate | Jamabandi | Mee Bhoomi | SC Certificate | UAN Login | eAadhaar Download | Linking Aadhaar To Bank Accounts | mAadhaar | Aadhaar Enrollment Centre | UAN Passbook | Amazon How to Sell | PAN Card Apply | EPFO Unified Portal