FREQUENTLY ASKED QUESTIONS

A Quick-Reference Guide to Understanding, Responding to, and Managing Notices under the Goods and Services Tax (GST) Law

Q1.  What is a GST notice?

Ans:  A GST notice is a formal communication issued by the GST department to a taxpayer, seeking clarification, information, or compliance regarding returns, payments, registration, or other obligations under the GST law. It may point out a discrepancy, propose a demand, or require a specific action within a stated time frame.

Q2.  Why do taxpayers receive GST notices?

Ans:  Notices are typically triggered by one or more of the following:

• Mismatch between GSTR-1, GSTR-3B and GSTR-2A/2B
• Non-filing or delayed filing of returns
• Discrepancies identified during scrutiny, audit, or data analytics
• Excess claim of Input Tax Credit (ITC)
• Short payment or non-payment of tax
• Non-compliance with e-way bill or e-invoicing requirements
• Refund claims requiring verification

Q3.  Where are GST notices delivered?

Ans:  Notices are primarily served electronically on the GST Common Portal (www.gst.gov.in) under 'View Notices and Orders', and a copy is usually also sent to the registered e-mail ID and mobile number of the taxpayer. It is advisable to check the portal periodically, as the limitation period generally runs from the date of upload on the portal, not from when the taxpayer actually reads it.

Q4.  How can I check if any notice has been issued to me?

Ans:  Log in to the GST portal, navigate to Services > User Services > View Notices and Orders (or the 'Additional Notices and Orders' tab), and review all pending and past communications regularly.

Some of the most frequently issued notices and their standard response timelines are summarised below:

Q5.  What should I do immediately on receiving a notice?

Ans:  Read the notice carefully to identify the issuing authority, the relevant form/section, the specific issue raised, and the due date for response. Gather the supporting documents (returns, invoices, ledgers, reconciliations) relevant to the issue before drafting a reply.

Q6.  How do I file a reply to a GST notice?

Ans:  Replies are generally filed online on the GST portal against the specific notice, using the prescribed reply form (for example, ASMT-11 for ASMT-10, or DRC-06 for DRC-01). Supporting documents can be attached, and a physical/manual reply may also be permitted in certain cases if specified in the notice.

Q7.  Can I request additional time to respond?

Ans:  Yes, an adjournment or extension may be requested from the proper officer, generally through a written application citing genuine reasons. However, granting an extension is at the discretion of the officer, so it is safer to plan the response well within the original timeline.

Q8.  Is a personal hearing available before a final order is passed?

Ans:  Where a notice may result in an adverse decision (such as a demand or cancellation), the taxpayer is generally entitled to a reasonable opportunity of being heard, including a personal hearing, before a final order is issued.

Q9.  What happens if I do not reply to a GST notice within the stipulated time?

Ans:  Non-response can lead to an ex-parte order being passed based on the information available with the department, which is often unfavourable to the taxpayer. It may also result in confirmation of the proposed demand, interest, and penalty, or cancellation of registration, as applicable to the type of notice.

Q10.  Can a GST registration be cancelled for not responding to a notice?

Ans:  Yes. If a taxpayer fails to respond to a show cause notice for cancellation (Form REG-17) within the prescribed period, the proper officer may proceed to cancel the registration.

Q11.  What are the consequences of an unreplied demand notice (DRC-01)?

Ans:  If no reply is filed, the proper officer may confirm the demand raised in the notice along with applicable interest and penalty, and pass an order under Section 73 or 74 of the CGST Act, as the case may be.

Q12.  What precautions should a taxpayer take to avoid GST notices?

Ans:  The following practices help minimise the risk of receiving notices:

• File all GST returns accurately and within due dates
• Reconcile GSTR-1, GSTR-3B and GSTR-2B on a monthly basis
• Maintain proper documentation for all ITC claims
• Respond promptly to any intimation (e.g., DRC-01A) before it escalates to a formal notice
• Keep the registered e-mail ID and mobile number updated on the portal

Q13.  Should I engage a professional to respond to a GST notice?

Ans:  While simple clarificatory notices can sometimes be handled independently, notices involving demand, ITC disputes, or cancellation typically involve legal and factual analysis. Engaging a qualified GST practitioner, chartered accountant, or tax advocate is advisable to ensure the reply is legally sound and adequately supported.