Flow of Notices under GST

Goods and Services Tax (GST) is a comprehensive tax system that has replaced multiple indirect taxes. It has simplified the indirect tax system and has made it more transparent. GST is governed by the Central Board of Excise and Customs (CBEC) and notified by the Ministry of Finance. In this article, we will discuss the flow of notices under GST.

What are the notices under GST?

Notices under GST are issued by the tax authorities to taxpayers in case of any discrepancy or non-compliance with the tax laws. The notices are sent in the form of letters or emails and are usually sent to the registered email address or mobile number of the taxpayer. It is important for taxpayers to respond to the notices within the specified time limit to avoid any penalty or legal action.

Flow of notices under GST

The flow of notices under GST can be divided into the following stages:

Stage 1: Issuance of Show Cause Notice (SCN)

When the tax authorities detect any discrepancy or non-compliance with the tax laws, they issue a Show Cause Notice (SCN) to the taxpayer. The SCN is issued in Form GST ASMT-10 and is sent to the registered email address or mobile number of the taxpayer.

The SCN contains the following details:

Reason for issuing the SCN
Details of the alleged non-compliance or discrepancy
Amount of tax or penalty involved
Time limit for the taxpayer to respond

Stage 2: Response to SCN

Once the taxpayer receives the SCN, he/she needs to respond within the specified time limit. The response should be in writing and should contain the following:

Explanation of the alleged non-compliance or discrepancy
Supporting documents, if any
Request for personal hearing, if required

The response should be sent in Form GST ASMT-11 to the tax authorities through the registered email address or mobile number.

Stage 3: Issuance of order

After receiving the response from the taxpayer, the tax authorities will examine the response and issue an order in Form GST ASMT-12. The order can be one of the following:

Order dropping the proceedings
Order imposing tax and penalty
Order imposing only penalty
Order requiring payment of tax and penalty

Stage 4: Appeal against the order

If the taxpayer is not satisfied with the order issued by the tax authorities, he/she can file an appeal against the order with the Appellate Authority. The appeal should be filed within 3 months from the date of receipt of the order.

Conclusion

The flow of notices under GST is a well-defined process that ensures transparency and fairness in the taxation system. Taxpayers should respond to the notices within the specified time limit and provide complete and accurate information to avoid any penalty or legal action. It is important for taxpayers to be aware of their rights and obligations under the GST law.