Gaurav Yadav
Updated on November 10th, 2023
GST notice is a mode of one-to-one communication between the GST authorities and the taxpayers. The taxpayers should take the GST notices seriously and take corrective actions as directed in the notice. Taxpayers may have to pay monetary fines if the GST notices are ignored for a long time.
In this short article, we will be discussing the different reasons of issuance of GST notices and also submit to you different types of GST notices that are issued to the taxpayers. We will also discuss about the reply format for major GST notices.
GST Notices Issued? – Find the most common reasons
There are multiple reasons for GST notice issuance. In this segment we have listed some of the most common reasons that can attract notices under GST.
- Incorrect utilization of GST Input Tax Credit
- Mismatch in GST return found in the entries between GSTR-1 & GSTR-3B
- Delayed filing of GSTR-1 & GSTR-3B (for six consecutive months)
- Inconsistent entries in GSTR-1 & the E-way Bill portal
- If a seller fails to reduce the prices when GST rates are reduced, then this action of the seller will be considered as ‘profiteering’ and this can attract a GST notice as an anti-profiteering measure.
- Incorrect furnishing of information or documents to the GST department.
- Claiming ineligible GST refund or claiming it in a wrong way.
- Inconsistent reporting of Exports in GSTR-1.
- Short payment of taxes, etc.
Types of GST Notices and There Reply Format
1. All about GSTR 3A notice
What is GSTR 3A?
GSTR 3A notice is issued to the taxpayers for defaulting on the following GST returns:
- GSTR-3B (consolidated summary of inward & outward supplies)
- GSTR-4 (for composition dealers)
- GSTR-5 (For non-resident taxpayers)
- GSTR-6 (For ISD’s)
- GSTR-7 (TDS deduction taxpayer)
- GSTR-8 (TCS collector)
- GSTR-9 (annual return for all taxpayers)
- GSTR-10 (Final return)
What is the penalty for late filing your GSTR 3B return?
On receiving the GSTR-3A, taxpayers have to file the defaulted GST returns within 15 days from the date of issuing the notice.
The pending GST returns have to be filed along with the GST return late fees and the interest (as applicable).
Type of return | Late fee | Maximum late fees |
Annual returns | Rs. 200 per day | 0.25% of the turnover in that state |
Other returns | Rs. 50 per day | Rs. 5000 |
What will happen if returns are NOT filed within 15 days?
- As per section 62of the CGST Act, 2017, ‘best judgment assessment’ would be done.
- The assessing officer shall scrutinize the tax liability as per the information furnished by the concerned GST officer.
2. CMP-05 GST Notices
What is CMP-05 notice under GST?
CMP-05 is a show cause notice which is issued to an existing composition dealer if it appears that the taxpayer has violated the conditions and restrictions necessary for availing of the GST Composition Scheme under section 10 of the CGST act of 2017.
CMP-05 notice Reply Format
- Within 15 days from the issuance of the CMP-05 notice, the taxpayer has to furnish a reply explaining the reason for the discrepancy.
Consequence of not replying within stipulated time to CMP-05 GST notice
- As per section 62 of the CGST Act, 2017, ‘best judgment assessment’ would be done.
- The assessing officer shall scrutinize the tax liability as per the information furnished by the concerned GST officer.
3. GST REG Forms - REG-03
What is REG-03 notice under GST?
When any person wishes to apply for the GST registration, he has to fill out Form GST REG-01 and submit it on the GST portal.
Form GST REG-01 will then be evaluated by the GST officer for all the requirements. GST registration documents list is offered to the person if all the conditions are met and there is no error in the submitted FORM GST REG-01.
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In case, if any of the part of FORM GST REG-01 is incomplete, then the GST officer shall notify this to the applicant via FORM GST REG-03.
Common reasons that attract a REG-03 notice:
- Missing documents or information in the gst registration application.
- When the proper GST official requests more information about the details provided in the GST registration application.
GST notices reply format – for REG-03
The applicant has to furnish the missing details on or before the date mentioned in the notice.
Failing to do so shall result in rejection of your GST registration application.
4.GST REG Form -REG-17
Show Cause Notice for Cancellation of Registration
REG 17 is a show cause notice asking for a reply as to why should the GST registration NOT be cancelled. In this GST notice the GST proper officer furnishes certain observations that are forcing your GST registration to be cancelled.
These reasons may be any violations of the conditions or any malpractices that the taxpayer was involved into.
How Do I issue a REG 17?
The receiver of the notice REG-17 should respond to the notice within seven working days from the date of issuance.
Failure in doing so shall result infinal cancellation of your GST registrationby issuingFORM REG-19.
5. GST REG Form - REG-23
What is GST notice REG-23?
REG-23 is a show cause notice GST application rejected for revocation of cancellation of GST registration. This notice asks for the reasons for why the cancellation of the process for GST registration must be revoked for the reasons mentioned in the notice.
How Do I Respond to a Rejected GST Registration?
The taxpayer must furnish a valid reply to this notice within seven working days from the date of issuance of the notice.
6.GST notice PCT-03 - Show Cause Notice for disqualification
What is PCT-03 notice under GST?
PCT-03 is a show-cause notice that is issued by the department to the GST practitioner for any GST related misconduct. This notice is issued under the Rule 83(4) of the CGST Rules, 2017.
This notice should be taken seriously by the GST practitioners as failing in furnishing adequate reply may result in the cancellation of license as the GST practitioner.
How to reply to PCT-03 notice?
The GST practitioner receiving the notice must respond within the time limit as mentioned in the notice, Follow the instruction prescribed in SCN.
7.GST notices – RFD-08
What is RFD-08 notice under GST?
RFD-08 is a show cause notice under GST that deals with the GST refunds. It notifies the taxpayer about rejection of application of the GST refund made by the taxpayer.
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How do I Respond to GST Refund Show Cause Notice?
Taxpayers must reply in the form RFD-09. It’s essential to furnish solid reasons to not cancel the GST refund application.
8.GST notices - GST ASMT-02
What is ASMT-02 notice under GST?
ASMT-02 is a scrutiny notice under GST. It is issued to demand additional information/ clarification or documentation for provisional assessment under GST.
How to reply to ASMT-02 scrutiny notice?
The taxpayer is expected to reply to this notice via FORM ASMT-03 along with the information/documents as demanded in the notice required for successful provisional assessment under GST.
The reply should be furnished within 15 days from the service of the notice.
9. GST notices - FormGST ASMT-06
What is ASMT-06 notices under GST?
This is also a scrutiny notice asking for additional information or documents for GST registration for final assessment. This notice is issued under Rule 98(5) of the CGST Rules, 2017.
GST notice reply format – ASMT-06
The taxpayer is expected to reply to this notice via FORM ASMT-03 along with the information/documents as demanded in the notice required for successful provisional assessment under GST.
The reply should be furnished within 15 days from the service of the notice.
10.GST notices - ASMT-10
What is GST ASMT-10 ?
ASMT-10 notice is issued under Section 61, CGST Act, 2017 & Rule 99, CGST Rules, 2017. This notice is sent to the taxpayer to intimate discrepancies in his GST returns after scrutiny.
What is GST ASMT-10 notice reply format?
The taxpayer is expected to reply via FORM ASMT-11 stating the reasons for the observed discrepancies in the GST returns. The reply has to be provided 30 days from the date of issuance or as prescribed in the SCN in gst.
11. GST noticesASMT-14
Meaning of ASMT-14 notice under GST
ASMT-14 is a show-cause notice under GST issued under Section 63 of CGST Act, 2017. Proper officer issues ASMT-14 notice to the taxable person via FORM GST ASMT-14 stating the grounds on which the assessment is proposed to be made by ‘best-judgement’ basis. This shall also serve as a summary electronically in the FORM GST DRC 01.
This notice is issued under the Rule 100 (2), CGST Rules, 2017.
How to reply to ASMT-14 notice under GST?
Appearance before the concerned authority within 15 days of the date of notice issuance.
12.GST notices -ADT-01
Meaning of ADT-01 notice
As per Section 65 of the CGST Act, if the Proper Officer believes that GST audit checklist is necessary for your business, then he can issue ADT-01 notice via FORM GST ADT-01. The concerned officer has to take a call whether the audit is to be carried out at the business premises of the taxpayer or at the GST office.
In short, this is a notice for conducting a GST audit of your business.
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How to reply to GST audit notice – ADT-01?
GST audit notice should be replied by attending the audit in person by presenting all the books of accounts to the concerned GST officer.
13. Enquiry notice – served by Directorate of Anti-profiteering
Input Tax Credit under GST is the foundational base of GST structure in India. When the GST rates are reduced, then these benefits have to be transferred to the other involved parties like retailers or end customers.
Failure in reducing rates after reduction in the GST rates accounts for ‘profiteering’ and is considered illegal. Hence, Directorate of Anti-Profiteering issues ‘Enquiry Notices’ to all such suppliers involved in ‘Profiteering’.
Hence, all the suppliers should be extra cautious when it comes to changes in the GST rates.
14.DRC-01 Notices Format
Meaning of GST notice DRC-01
DRC stands for ‘Demands and Recovery’. GST notice DRC-01 is a show cause notice demanding unpaid tax or short paid tax liability.
DRC-01 GST notice is essential to keep the fraudulent transactions in check hence, businesses and taxpayers must be extra careful while filing their GST returns
DRC-01 is issued under Rule 100(2) and Rule 142(1)(a)
How to reply to GST audit notice – DRC-01?
The reply to DRC-01 should be given through the form GST DRC-03within 30 days from the date of notice served. The taxpayers should pay the amount of tax demanded in the GST notice DRC-01plus the interest and the penalties as applicable.
15. GST notices - Form GST DRC-13
What is DRC 13 notice?
DRC-13 is a GST notice served to a third person for recovering the GST dues towards the taxable person. DRC-13 is served under Section 79(1) (c) of the CGST Act, 2017.
GST DRC-03 notices served by the GST department to the debtors of the GST defaulters to notify them to clear their dues towards the taxable debtors.
How to reply to GST audit notice – DRC-13?
The reply of DRC-13 has to be furnished through the FORM GST DRC-14. The defaulter has to deposit the amount specified in the notice DRC-13.
What if the dues are not cleared by the defaulters?
If the receiver fails on paying the GST dues post serving of the notice, then he will deemed as a ‘GST defaulter’ and may be subject to the prosecution and fines.
16. Form GST DRC - 16
What is the meaning of DRC-16?
DRC-16 Notice for attachment and sale of immovable/movable goods/shares under section 79 of the CGST Act of 2017.
How to reply to DRC-16?
The best way to deal with the DRC-16 GST notice is to refrain from transferring or creating any charge on the asset mentioned in the notice. If the taxpayer creates any such charge on the asset, it would stand invalid.
Any restricted activities post serving the notice may invite prosecution against the taxpayer or the penalties or interest (as applicable).
GST notices issuance – What is the legal mode?
There are different modes of communication stated in the Section 169(1) of the CGST Act of 2017. The GST notices shall be sent to the taxpayers through following modes:
- Via e-mail address provided at the time of GST registration
- Through the GSTN portal on the dashboard of the taxpayer after logging in using his credentials
- Hand-delivered to the taxpayer or through courier
- Publishing the notice in the local newspaper in the locality based upon the last known residential address of the taxpayer
- By registered post or speed-post to the registered place of business or the last known address of the business
- If none of the above options are found, then the GST notice has to be affixed at some prominent place at his last known business address. If this is also not found, then the as a last resort the GST notice has to be affixed on the notice board of the concerned GST authority.
In a nutshell
GST notices are common and should be dealt with as per the provisions mentioned in the notice and the CGST rules. Staying 100% compliant with all the GST laws is the best way to stay away from the GST audit by department and other GST notices.
Taxpayers are advised to have a centralized mechanism like an internal GST audit tool that helps in keeping track of all the details furnished on the GST portal. A GST audit tool helps in identifying and rectifying the errors beforehand so that we can rectify them to avoid further hassle.
To try GSTHero’s super-intelligent GST Audit tool, Third Eye, reach out to us and experience the power of automation & AI in your GST compliance!
Stay ahead; stay updated!
Until the next time……
Gaurav Yadav
About the author
Gaurav is an Engineer by training with a deep interest in Economics & Finance. He has been associated with the Fin-Tech industry for quite some time now. He writes for GSTHero for topics including GST Compliance, GST Structure, etc & aims to break down complicated technical jargon into simple terms for the taxpayers. His expertise includes GST Laws, Corporate Finance & Macro-Economics.
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