How to Handle GST Notices Scrutiny, Assessment, Adjudication & Appeals

Description

Get the “How to Handle GST Notices Scrutiny, Assessment, Adjudication & Appeals,” 2nd edition (August 2024) by Rakesh Garg and Sandeep Garg. This essential guide, published by Commercial Law Publishers, provides comprehensive insights into handling GST-related legalities. Benefit from a flat 27% discount for a limited period and enjoy free shipping. Order now using ISBN 9789356038813 to master GST notices and appeals.

Table of Contents
About the Authors …………………………………………………………………………………………………………… v
Preface …………………………………………………………………………………………………………………….. vii
Contents at a Glance ………………………………………………………………………………………………………. ix
Table of Cases …………………………………………………………………………………………………. xxv
PART – A
PREAMBLE AND MAJOR LITIGATIONS
Chapter A1 Concepts and Framework of GST …………………………………………. A1-1
A1.1 Basic Concepts of the GST …………………………………………………………………….. A1-1
A1.2 Legislative Framework………………………………………………………………………….. A1-3
A1.3 Meaning and Scope of the term “Supply”…………………………………………………. A1-6
A1.4 Concept of distinct persons ……………………………………………………………………. A1-9
A1.5 Taxable event and charging provisions ……………………………………………………. A1-10
A1.6 Rates of GST ……………………………………………………………………………………… A1-12
A1.7 Exemptions and exempt supplies …………………………………………………………… A1-13
A1.8 Time and Value of supply …………………………………………………………………….. A1-13
A1.8.1 Time of Supply ……………………………………………………………………… A1-13
A1.8.2 Value of supply ……………………………………………………………………… A1-15
A1.9 Zero Rated Supplies …………………………………………………………………………….. A1-16
A1.10 Export of goods and services …………………………………………………………………. A1-17
A1.10.1 Export of goods …………………………………………………………………….. A1-17
A1.10.2 Export of services …………………………………………………………………… A1-18
A1.10.3 Supplies in territorial waters …………………………………………………….. A1-19
A1.11 Supply to SEZ Units and Developers ……………………………………………………… A1-20
A1.11.1 Special Economic Zone ………………………………………………………….. A1-20
A1.11.2 Special Economic Zone Developer ……………………………………………. A1-20
A1.11.3 Supplies to the SEZ Units and Developer …………………………………… A1-20
A1.11.4 Two options are available to the supplies made in SEZ area ………….. A1-21
A1.12 Output Tax ………………………………………………………………………………………… A1-21
A1.13 Input Tax Credit (ITC) ………………………………………………………………………… A1-21
A1.14 Due date of payment of Self-Assessed Tax ………………………………………………. A1-24
A1.15 Persons liable to file returns…………………………………………………………………… A1-25
A1.16 Types of returns or reports and periodicity ………………………………………………. A1-25
A1.17 Person-wise returns ……………………………………………………………………………… A1-28
A1.18 Limitation period for correction/modification ………………………………………….. A1-29
A1.19 Refund (Section 54 & 55 of the GST Act) ………………………………………………… A1-30
A1.19.1 Circumstances ………………………………………………………………………. A1-30
A1.19.2 Time limit …………………………………………………………………………….. A1-30
A1.19.3 Procedure for claiming refund ………………………………………………….. A1-33
A1.20 E-way bill ………………………………………………………………………………………….. A1-33
A1.21 Job Work …………………………………………………………………………………………… A1-34
A1.22 Tax Invoice, Bill of Supply, Debit/Credit Notes ……………………………………….. A1-35
A1.22.1 E-invoice ……………………………………………………………………………… A1-35
A1.22.2 Tax Invoice/Bill of Supply/Delivery Challan – Features ………………. A1-37
A1.22.3 Circumstances when a debit note or credit note is issued ………………. A1-37
A1.23 Accounts and Records …………………………………………………………………………. A1-38
A1.23.1 Maintenance of Accounts and Records (Sec 35 of the GST Act) …….. A1-38
A1.23.2 Retention of Accounts and Records (Sec 36 of the GST Act) …………. A1-39
A1.24 Interest under GST ……………………………………………………………………………… A1-40
A1.24.1 Interest payable by the person ………………………………………………….. A1-40
A1.24.2 Interest payable to the person …………………………………………………… A1-41
A1.25 Penalties under GST ……………………………………………………………………………. A1-41
Chapter A2 Major litigation areas in the GST …………………………………………. A2-1
A2.1 Supply, time of supply and its value …………………………………………… A2-1
A2.2 Classification and rates of tax ……………………………………………………. A2-4
A2.3 Input tax credit ………………………………………………………………………. A2-4
A2.4 Registration and its cancellation ………………………………………………… A2-5
A2.5 Refund ………………………………………………………………………………….. A2-6
A2.6 Movement of goods and e-way bill …………………………………………….. A2-6
A2.7 Mismatches …………………………………………………………………………… A2-6
A2.8 Others …………………………………………………………………………………… A2-7
PART – B
SCRUTINY AND ASSESSMENT
Chapter B1 Scheme of Assessment ……………………………………………………… B1-1
B1.1 Assessments under the GST ……………………………………………………………………. B1-1
B1.2 Self-Assessment ……………………………………………………………………………………. B1-3
B1.2.1 Meaning of Self-assessment ……………………………………………………….. B1-3
B1.2.2 Steps of self-assessment …………………………………………………………….. B1-4
B1.2.3 Precautions while making self-assessment ……………………………………. B1-5
B1.3 Provisional Assessment ………………………………………………………………………….. B1-6
B1.4 Scrutiny of returns ………………………………………………………………………………… B1-7
B1.5 Non filer of Returns – Best Judgment Assessment ………………………………………. B1-8
B1.6 Unregistered persons – Best Judgment Assessment ……………………………………… B1-9
B1.7 Summary Assessment ………………………………………………………………………….. B1-10
B1.8 Show cause notice under sec 73 and 74 and Adjudication ………………………….. B1-11
B1.9 Assessment proceedings not to be invalid ………………………………………………… B1-12
Chapter B2 Provisional Assessment …………………………………………………….. B2-1
B2.1 Legislative provisions …………………………………………………………………………….. B2-1
B2.1.1 Sec 60 of the GST Act – Provisional assessment ……………………………. B2-1
B2.1.2 Rule 98 of the GST Rules – Provisional assessment ……………………….. B2-2
B2.1.3 Related GST Forms …………………………………………………………………. B2-4
B2.2 Provisions at a glance …………………………………………………………………………….. B2-4
B2.3 Circumstances of Provisional Assessment …………………………………………………. B2-5
B2.4 Who can make the application and to whom ……………………………………………… B2-6
B2.5 Process/Steps for Provisional Assessment …………………………………………………. B2-6
B2.6 Final Assessment after the Provisional Assessment …………………………………….. B2-9
B2.6.1 Framing the final assessment …………………………………………………….. B2-9
B2.6.2 Liability of interest at the time of final assessment …………………………. B2-9
B2.6.3 Release of security …………………………………………………………………. B2-10
B2.7 FAQ by Tripura GST Department (Extracts) …………………………………………… B2-10
B2.8 Show cause notice after Provisional Assessment ……………………………………….. B2-12
B2.9 Advance Ruling vs. Provisional Assessment …………………………………………….. B2-13
B2.10 Aggrieved against the Order – Right to Appeal …………………………………………. B2-14
B2.11 Procedural and Practical Aspects – FAQ by GSTN ……………………………………. B2-14
Chapter B3 Scrutiny of Returns …………………………………………………………. B3-1
B3.1 Legislative provisions …………………………………………………………………………….. B3-1
B3.1.1 Sec 61 of the GST Act ………………………………………………………………. B3-1
B3.1.2 Rule 99 of the GST Rules………………………………………………………….. B3-1
B3.1.3 Related GST Forms …………………………………………………………………. B3-2
B3.2 Provisions at a glance …………………………………………………………………………….. B3-2
B3.3 Proper Officer and Selection for Scrutiny ………………………………………………….. B3-4
B3.3.1 Who is the Proper officer for scrutiny of returns ……………………………. B3-4
B3.3.2 Selection of returns for scrutiny ………………………………………………….. B3-4
B3.4 Reasons/Parameters for scrutiny……………………………………………………………… B3-5
B3.4.1 Based upon Instruction No. 02/2022-GST (Annexure B),
dated 22 March 2022 ……………………………………………………………… B3-5
B3.4.2 Based upon Haryana GST Returns Scrutiny Manual-2022 ……………. B3-10
B3.5 Process/Steps for scrutiny of returns and Conclusion ………………………………… B3-11
B3.6 Procedural and Practical Aspects …………………………………………………………… B3-13
B3.7 Aggrieved against the decision of Scrutiny ………………………………………………. B3-17
B3.8 Standard Operating Procedure (SOP) for Scrutiny of returns ………………………. B3-17
Chapter B4 Non-Filer of Returns ……………………………………………………….. B4-1
B4.1 Legislative provisions …………………………………………………………………………….. B4-1
B4.1.1 Sec 62 of the GST Act ………………………………………………………………. B4-1
B4.1.2 GST Rules ……………………………………………………………………………… B4-2
A) Rule 68 – Notice to non-filers of returns ………………………………….. B4-2
B) Rule 100 – Assessment in certain cases ……………………………………. B4-2
B4.1.3 Related GST Forms …………………………………………………………………. B4-2
B4.2 Provisions at a glance …………………………………………………………………………….. B4-3
B4.3 Reasons/Circumstances …………………………………………………………………………. B4-3
B4.4 Process/Steps of making best judgment assessment …………………………………….. B4-4
B4.5 Principles of best judgment assessment ……………………………………………………… B4-6
B4.6 Withdrawal of best judgment assessment ………………………………………………….. B4-8
B4.7 Standard Operating Procedure (SOP) ……………………………………………………… B4-10
B4.8 Actions after issue of Form ASMT-13 …………………………………………………….. B4-12
Chapter B5 Assessment of unregistered persons ……………………………………….. B5-1
B5.1 Legislative provisions …………………………………………………………………………….. B5-1
B5.1.1 Sec 63 of the GST Act ………………………………………………………………. B5-1
B5.1.2 Rule 100 of the GST Rules ………………………………………………………… B5-1
B5.1.3 Related GST Forms …………………………………………………………………. B5-2
B5.2 Provisions at a glance …………………………………………………………………………….. B5-2
B5.3 Circumstances of assessment of unregistered person ……………………………………. B5-2
B5.4 Process/Steps of making best judgment assessment …………………………………….. B5-4
B5.5 Principles of best judgment assessment ……………………………………………………… B5-6
B5.6 Procedural and Practical Aspects …………………………………………………………….. B5-6
B5.7 Actions for not responding to the notice in ASMT-14 ………………………………… B5-11
B5.8 Aggrieved against the Order – Right to Appeal …………………………………………. B5-11
Chapter B6 Summary Assessment ………………………………………………………. B6-1
B6.1 Legislative provisions …………………………………………………………………………….. B6-1
B6.1.1 Sec 64 of the GST Act ………………………………………………………………. B6-1
B6.1.2 Rule 100 of the GST Rules ………………………………………………………… B6-2
B6.1.3 Related GST Forms …………………………………………………………………. B6-2
B6.2 Circumstances of summary assessment …………………………………………………….. B6-2
B6.3 Process/Steps of making summary assessment …………………………………………… B6-4
B6.4 Procedural and Practical Aspects …………………………………………………………….. B6-5
B6.5 Actions for not responding to the notice in ASMT-16 ………………………………… B6-10
B6.6 Aggrieved against the Order – Right to Appeal …………………………………………. B6-10
Chapter B7 Assessment related Provisions & Forms ………………………………….. B7-1
B7.1 Assessment related sections under the GST Act …………………………………………. B7-3
59. Self- assessment. ………………………………………………………………………….. B7-3
60. Provisional assessment. ………………………………………………………………… B7-3
61. Scrutiny of returns. ………………………………………………………………………. B7-4
62. Assessment of non-filers of returns. …………………………………………………. B7-4
63. Assessment of unregistered persons. ……………………………………………….. B7-5
64. Summary assessment in certain special cases. …………………………………… B7-5
B7.2 Assessment related rules under the GST Rules …………………………………………… B7-7
98. Provisional Assessment. ……………………………………………………………….. B7-7
99. Scrutiny of returns. ………………………………………………………………………. B7-8
100. Assessment in certain cases. …………………………………………………………… B7-8
B7.3 Assessment related Forms …………………………………………………………………….. B7-10
B7.4 Assessment related Circulars and Instructions ………………………………………….. B7-33
PART – C
SHOW CAUSE NOTICE UNDER SEC 73/74
Chapter C1 SCN under sec 73/74/74A – Scope, circumstances and time limit …….. C1-1
C1.1 Legislative provisions …………………………………………………………………………….. C1-2
C1.1.1 Sec 73 of the GST Act ………………………………………………………………. C1-2
C1.1.2 Sec 74 of the GST Act ………………………………………………………………. C1-3
C1.1.3 Sec 75 of the GST Act ………………………………………………………………. C1-4
C1.1.4 Rule 142 of the GST Rules ………………………………………………………… C1-4
C1.1.5 Related GST Forms …………………………………………………………………. C1-4
C1.2 Contents of SCN and its nature ……………………………………………………………….. C1-5
C1.2.1 Prescribed form of notice under sec 73/74 – Ambiguity ………………….. C1-5
C1.2.2 SCN is not a notice, simpliciter ………………………………………………….. C1-6
C1.2.3 Signatures on the SCN ……………………………………………………………… C1-6
C.1.2.4 Bunching of SCN for multiple years ……………………………………………. C1-7
C.1.2.5 Generation and quoting of Document Identification Number (DIN) … C1-7
C1.3 Sec 73 vs. Sec 74 – Issue of SCN and Time Limit ………………………………………… C1-8
C1.3.1 Sec 73 vs. Sec 74 ………………………………………………………………………. C1-8
C1.3.2 Timeline for issuance of Notice and Adjudication Order ………………… C1-9
C1.4 Circumstances of issuing SCN under sec 73 or sec 74 ………………………………… C1-10
C1.5 Circumstances of issue of SCN under sec 74…………………………………………….. C1-12
C1.5.1 Meaning of ‘fraud’ …………………………………………………………………. C1-13
C1.5.2 Meaning of ‘Willful misstatement’ ……………………………………………. C1-14
C1.5.3 Meaning of ‘Suppression’ ………………………………………………………… C1-15
C1.5.4 ‘To avoid tax’ or ‘to evade tax’ …………………………………………………. C1-16
C1.5.5 Case Laws ……………………………………………………………………………. C1-17
C1.5.6 What would happen if invoking of Sec 74 is not maintainable ……….. C1-21
C1.6 Who can issue SCN …………………………………………………………………………….. C1-22
C1.7 SCN under sec 73/74 for recovery of Interest or Penalty ……………………………. C1-25
C1.8 Issue of statement under sec 73(3)/74(3) …………………………………………………. C1-27
C1.9 Pre-consultation or Pre-SCN …………………………………………………………………. C1-27
C1.10 Writ petitions challenging SCN or pre-SCN …………………………………………….. C1-29
C1.11 Other issues regarding SCN under sec 73/74 ……………………………………………. C1-30
C1.11.1 Manner of service of SCN – Uploading on web portal ………………….. C1-30
C1.11.2 Issue of another SCN for the same tax period ……………………………… C1-31
C1.11.3 SCN for multiple Years …………………………………………………………… C1-32
C1.11.4 SCN based upon audit report …………………………………………………… C1-32
C1.11.5 Issue of SCN when audit proceedings are pending – allowed …………. C1-32
C1.11.6 Issue of SCN for recovery of self-assessed tax ……………………………… C1-32
C1.11.7 Issue of SCN without scrutiny of returns under sec 61 ………………….. C1-34
C1.12 Continuation and validation of certain recovery proceedings ………………………. C1-35
C1.13 Sequence of procedure till the issuance of SCN ………………………………………… C1-36
Chapter C2 SCN under sec 73/74 – Voluntary payment ………………………………. C2-1
C2.1 Legislative provisions …………………………………………………………………………….. C2-1
C2.1.1 Sec 73 of the GST Act ………………………………………………………………. C2-1
C2.1.2 Sec 74 of the GST Act ………………………………………………………………. C2-2
C2.1.3 Rule 142 of the GST Rules ………………………………………………………… C2-4
C2.1.4 Related GST Forms …………………………………………………………………. C2-5
C2.2 Relief/Immunity on Voluntary payment …………………………………………………… C2-6
C2.3 Steps of voluntary payment and immunity ………………………………………………… C2-8
C2.3.1 Tax etc. paid before issue of SCN – Steps ……………………………………… C2-8
C2.3.2 Tax etc. paid within 30 days of issue of SCN – Steps ………………………. C2-9
C2.3.3 Tax etc. paid within 30 days of communication of Order – Steps…….. C2-10
C2.3.4 Self-assessed tax, etc. ……………………………………………………………… C2-11
C2.4 Retraction of admission under sec 73(5) or 74(5) ………………………………………. C2-11
C2.5 Rectification of Form DRC-3 ………………………………………………………………… C2-12
Chapter C3 SCN under sec 73/74 – Defense and Replies …………………………….. C3-1
C3.1 Legislative provisions …………………………………………………………………………….. C3-1
C3.1.1 Sec 73 of the GST Act ………………………………………………………………. C3-1
C3.1.2 Sec 74 of the GST Act ………………………………………………………………. C3-2
C3.1.3 Sec 75 of the GST Act ………………………………………………………………. C3-2
C3.1.4 Rule 142 of the GST Rules ………………………………………………………… C3-3
C3.1.5 Related GST Forms …………………………………………………………………. C3-3
C3.2 Defense – Validity of SCN issued under sec 73/74 ………………………………………. C3-3
C3.2.1 Pre – SCN notice should be issued before issuance of SCN ……………… C3-3
C3.2.1A Signatures on the SCN ……………………………………………………………… C3-5
C3.2.1B Generation and quoting of Document Identification Number (DIN) … C3-6
C3.2.2 SCN should be in proper format …………………………………………………. C3-6
C3.2.3 SCN should not be vague and incomplete ……………………………………. C3-7
C3.2.4 SCN should be issued within the specified time limit ……………………… C3-8
C3.2.4A Manner of service of DRC-01/07 – Uploading on web portal ………….. C3-9
C3.2.5 Justifiable reasons to invoke sec 74 – Extended period………………….. C3-10
C3.2.6 SCN should specify the grounds, reasons and amount in default ……. C3-11
C3.2.7 Reasonable and sufficient opportunity to furnish submissions………… C3-12
C3.2.7A SCN based upon Other Authority’s Report ………………………………… C3-14
C3.2.7B SCN with pre-determined notion – Should not give conclusion ………. C3-14
C3.2.8 SCN should be issued by the competent officer, who should not lack
jurisdiction ……………………………………………………………………………. C3-15
C3.2.9 Reopening of assessment…………………………………………………………. C3-16
C3.2.10 Whether Rule 142(1)(a) is ultra-virus…………………………………………. C3-17
C3.2.11 Issue of SCN when other proceedings are pending – No defense ……. C3-17
C3.2.12 Writ Petition against the SCN ………………………………………………….. C3-18
C3.3 Handing of the SCN – To Summarize …………………………………………………….. C3-18
C3.4 Replies/Representation to the SCN ……………………………………………………….. C3-19
C3.5 Mismatch of ITC from F.Y. 2017-18 to 31.12.2021 due to incorrect
filing of Form GSTR-1 ……………………………………………………………………….. C3-22
C3.6 Receipts from suppliers whose registration has been cancelled subsequently,
retrospectively …………………………………………………………………………………….. C3-23
C3.7 Alleged bogus purchases ………………………………………………………………………. C3-25
Appendix-1 ……………………………………………………………………………………………………… C3-29
Appendix-2 …………………………………………………………………………………………………….. C3-32
Chapter C4 SCN under sec 73/74 – Adjudication ……………………………………… C4-1
C4.1 Legislative provisions …………………………………………………………………………….. C4-1
C4.1.1 Sec 73 of the GST Act ………………………………………………………………. C4-1
C4.1.2 Sec 74 of the GST Act ………………………………………………………………. C4-2
C4.1.3 Sec 75 of the GST Act ………………………………………………………………. C4-2
C4.1.4 Rule 142 of the GST Rules ………………………………………………………… C4-3
C4.1.5 Related GST Forms …………………………………………………………………. C4-4
C4.2 Principles of Adjudication ………………………………………………………………………. C4-4
C4.2.1 Principles specified in Sec 75 of the GST Act ……………………………….. C4-4
C4.2.2 General Principles …………………………………………………………………… C4-5
C4.3 Who can adjudicate …………………………………………………………………………….. C4-10
C4.4 Adjournments …………………………………………………………………………………….. C4-14
C4.5 Personal hearing …………………………………………………………………………………. C4-15
C4.6 Obligations of the adjudicating authority …………………………………………………. C4-16
C4.6.1 Pass a speaking order ……………………………………………………………… C4-16
C4.6.2 Adjudication shall not be beyond the SCN …………………………………. C4-18
C4.6.3 Other points ………………………………………………………………………….. C4-19
C4.7 Generation and quoting of Document Identification Number (DIN) ……………. C4-20
C4.8 Timeline for issuance of Notice and Order ………………………………………………. C4-21
C4.8.1 Time limit specified under sec 73(10) and 74(10) …………………………. C4-21
C4.8.2 Extension of time limit – Issue of SCN for erroneous refunds …………. C4-22
C4.8.3 Matters pending before higher forums/courts ……………………………… C4-23
C4.9 Deemed conclusion …………………………………………………………………………….. C4-24
C4.10 Modification of demand ……………………………………………………………………….. C4-24
C4.11 Adjudication of interest and penalty ……………………………………………………….. C4-24
C4.11.1 Adjudication of interest …………………………………………………………… C4-24
C4.11.2 Adjudication of penalty…………………………………………………………… C4-25
C4.11.3 Whether penalty is always dependent upon tax …………………………… C4-26
C4.11.4 Imposition of penalty – Section 73/74 vs. Section 122 ………………….. C4-27
C4.11.5 Imposition of penalty for delay in filing of return in GSTR-3B ………. C4-28
C4.11.6 Early payment of tax etc. after adjudication under sec 74 ……………… C4-28
C4.12 Adjudication proceedings not to be invalid ………………………………………………. C4-29
C4.13 Rectification of errors apparent on the face of record …………………………………. C4-29
C4.14 Grounds against the Adjudication Order in Appeal – To Summarize …………… C4-31
C4.15 Procedure of Adjudication – GST Rules ………………………………………………….. C4-32
C4.16 Payment of tax etc. in instalments – Post adjudication ……………………………….. C4-34
C4.17 Initiation of Recovery Proceedings – Post adjudication ………………………………. C4-34
C4.18 Recovery after Adjudication ………………………………………………………………….. C4-36
C4.19 Appeal against the Adjudication Order ………………………………………………….. C4-36
Appendix-1 …………………………………………………………………………………………………….. C4-37
Appendix-2 ……………………………………………………………………………………………………… C4-41
Chapter C5 Tax collected but not paid ………………………………………………….. C5-1
C5.1 Legislative provisions …………………………………………………………………………….. C5-1
C5.1.1 Sec 76 of the GST Act ………………………………………………………………. C5-1
C5.1.2 Rule 142 of the GST Rules ………………………………………………………… C5-2
C5.1.3 Related GST Forms …………………………………………………………………. C5-2
C5.2 Circumstances ……………………………………………………………………………………… C5-3
C5.3 Process/Steps of SCN and its Adjudication ……………………………………………….. C5-4
C5.3.1 Other important points……………………………………………………………… C5-5
C5.4 Procedural and Practical Aspects …………………………………………………………….. C5-6
Chapter C6 SCN under sec 73/74 – Practical Aspects…………………………………. C6-1
C6.1 Legislative provisions …………………………………………………………………………….. C6-1
C6.1.1 Rule 142 of the GST Rules ………………………………………………………… C6-1
C6.1.2 Related GST Forms …………………………………………………………………. C6-3
C6.2 Procedure/Steps of SCN and its Adjudication ……………………………………………. C6-4
C6.3 FAQ by GSTN …………………………………………………………………………………….. C6-5
C6.4 Action points for the Noticee ………………………………………………………………… C6-10
Chapter C7 SCN under sec 73/74 related provisions ………………………………….. C7-1
C7.1 Show cause notice under sec 73 to 76 related sections under the GST Act ………. C7-3
73. Determination of tax not paid or short paid or erroneously refunded
or input tax credit wrongly availed or utilised for any reason other
than fraud or any wilful-misstatement or suppression of facts. ……….. C7-3
74. Determination of tax not paid or short paid or erroneously refunded or
input tax credit wrongly availed or utilised by reason of fraud or any
wilful-misstatement or suppression of facts. ………………………………….. C7-4
75. General provisions relating to determination of tax. ………………………. C7-7
76. Tax collected but not paid to Government. ………………………………….. C7-9
C7.2 Show cause notice related rules under the GST Rules ………………………………… C7-11
142. Notice and order for demand of amounts payable under the Act. …… C7-11
C7.3 Show cause notice related Forms …………………………………………………………… C7-15
C7.4 Show cause notice related Circulars and Instructions…………………………………. C7-28
Chapter C8 Amendments by the Finance Act, 2024 SCN and Amnesty Scheme ……. C8-1
C8.1 Section 74A of the GST Act –SCN & Adjudication …………………………………….. C8-1
C8.1.1 Legislative provisions – Sec 74A – W.e.f. F. Y. 2024-25 …………………. C8-1
C8.1.2 Sec 74A – At a glance ………………………………………………………………. C8-4
C8.1.3 Other related amendments ………………………………………………………… C8-7
C8.2 Section 128A of the GST Act – Amnesty scheme ……………………………………….. C8-8
C8.2.1 Legislative provisions ……………………………………………………………….. C8-8
C8.2.2 Sec 128A – An analysis …………………………………………………………… C8-10
PART – D
SUMMONS AND OTHER NOTICES
Chapter D1 Summons under the GST …………………………………………………… D1-1
D1.1 Legislative provisions ……………………………………………………………………………. D1-1
D1.1.1 Sec 70 of the GST Act ……………………………………………………………… D1-1
D1.1.2 Format of Summon ………………………………………………………………… D1-2
D1.2 Power to summon and circumstances………………………………………………………. D1-3
D1.3 Who can Summon and to whom ……………………………………………………………. D1-6
D1.3.1 Who can summon ………………………………………………………………….. D1-6
D1.3.2 Who can be summoned …………………………………………………………… D1-8
D1.4 Deemed to be judicial proceedings ………………………………………………………….. D1-9
D1.5 Manner of issuing summon – General Guidelines ……………………………………. D1-10
D1.6 Precautions to be observed while issuing summons ………………………………….. D1-10
D1.7 Consequences of non-appearance to summons ………………………………………… D1-11
D1.8 Statement during summon proceedings ………………………………………………….. D1-11
D1.9 Other points relating to summon …………………………………………………………… D1-14
D1.9.1 Issuance of summons repeatedly ……………………………………………… D1-14
D1.9.2 Parallel enquiry proceedings under sec 70 by State and Centre ……… D1-15
D1.9.3 Right of cross examination ……………………………………………………… D1-15
D1.9.4 Apprehension of arrest during summon…………………………………….. D1-16
D1.9.5 Might have to travel from one State to another …………………………… D1-16
D1.9.6 Installation of CCTV …………………………………………………………….. D1-16
D1.9.7 No interference by the High Court …………………………………………… D1-17
D1.9.8 Officers to assist proper officers ……………………………………………….. D1-17
D1.9.9 Adjudication proceedings and summons not to be invalid …………….. D1-18
D1.10 Guidelines on issuance of summons under section 70 of the CGST Act ……….. D1-18
Chapter D2 Other Notices under the GST ……………………………………………… D2-1
D2.1 Notices, in general ……………………………………………………………………………….. D2-2
D2.2 Notice for seeking additional information for application of registration
[REG-03] ……………………………………………………………………………………………. D2-2
D2.2.1 Sec 25 of the GST Act ……………………………………………………………… D2-2
D2.2.2 Rule 9 of the GST Rules ………………………………………………………….. D2-3
D2.2.3 Related GST Forms ………………………………………………………………… D2-4
D2.2.4 Circumstances ……………………………………………………………………….. D2-5
D2.2.5 Process/Steps of Notice and its Order ………………………………………… D2-5
D2.2.6 Handling of Notice – Precautions ………………………………………………. D2-6
D2.3 SCN for Cancellation of Registration [REG-17] ………………………………………… D2-7
D2.3.1 Sec 29 of the GST Act ……………………………………………………………… D2-7
D2.3.2 Rule 21A of the GST Rules ………………………………………………………. D2-8
D2.3.3 Rule 22 of the GST Rules…………………………………………………………. D2-9
D2.3.4 Related GST Forms ………………………………………………………………. D2-10
D2.3.5 Circumstances – Cancellation of registration ……………………………… D2-10
D2.3.6 Process/Steps of Notice and its Order ………………………………………. D2-11
D2.3.7 Handling of Notice ……………………………………………………………….. D2-12
D2.3.8 Case laws in the defense of Noticee ………………………………………….. D2-12
D2.4 Notice for rejection of application for revocation of cancellation of registration
[REG-23] ………………………………………………………………………………………….. D2-15
D2.4.1 Sec 30 of the GST Act ……………………………………………………………. D2-15
D2.4.2 Rule 23 of the GST Rules……………………………………………………….. D2-16
D2.4.3 Related GST Forms ………………………………………………………………. D2-18
D2.4.4 Circumstances ……………………………………………………………………… D2-18
D2.4.5 Process/Steps of Application, Notice and its Order …………………….. D2-19
D2.4.6 Handling of Notice ……………………………………………………………….. D2-20
D2.5 Denial of option to pay tax under composition [CMP-05] …………………………. D2-21
D2.5.1 Sec 10 of the GST Act ……………………………………………………………. D2-21
D2.5.2 Rule 6 of the GST Rules ………………………………………………………… D2-21
D2.5.3 Related GST Forms ………………………………………………………………. D2-21
D2.5.4 Circumstances – Non-Compliance of the Composition Scheme …….. D2-22
D2.5.5 Process/Steps of Notice and its Order ………………………………………. D2-23
D2.5.6 Handling of Notice ……………………………………………………………….. D2-23
D2.6 Notice to return defaulter for not filing return [GSTR-3A] …………………………. D2-24
D2.6.1 Sec 46 of the GST Act – Notice to return defaulters …………………….. D2-24
D2.6.2 Rule 68 of the GST Rules – Notice to non-filers of returns ……………. D2-24
D2.6.3 Related GST Forms ………………………………………………………………. D2-24
D2.6.4 Circumstances ……………………………………………………………………… D2-24
D2.6.5 Actions against the non-filer of returns ……………………………………… D2-25
D2.7 Notice for rejection of application for refund [RFD-08] …………………………….. D2-26
D2.7.1 Sec 54 of the GST Act ……………………………………………………………. D2-26
D2.7.2 Rule 92 of the GST Rules……………………………………………………….. D2-26
D2.7.3 Related GST Forms ………………………………………………………………. D2-26
D2.7.4 Circumstances ……………………………………………………………………… D2-26
D2.7.5 Process/Steps of Notice and its Order ………………………………………. D2-28
D2.7.6 Handling of Notice and defense available ………………………………….. D2-29
D2.8 Notice to a third person under section 79(1)(c) [DRC–13] …………………………. D2-31
D2.8.1 Sec 79 of the GST Act ……………………………………………………………. D2-31
D2.8.2 Rule 145 of the GST Rules ……………………………………………………… D2-33
D2.8.3 Related GST Forms ………………………………………………………………. D2-33
D2.8.4 Circumstances ……………………………………………………………………… D2-33
D2.8.5 Process/Steps of Notice and Certificate …………………………………….. D2-34
D2.9 Provisional attachment of property under sec 83 [DRC–22]……………………….. D2-35
D2.9.1 Sec 83 of the GST Act ……………………………………………………………. D2-35
D2.9.2 Rule 159 of the GST Rules ……………………………………………………… D2-35
D2.9.3 Related GST Forms ………………………………………………………………. D2-36
D2.9.4 Circumstances ……………………………………………………………………… D2-37
D2.9.5 Process/Steps of Order and Objection ………………………………………. D2-38
D2.9.6 Defense available ………………………………………………………………….. D2-39
D2.10 Notice for detention/confiscation of goods in movement ………………………….. D2-43
D2.10.1 Rule 138B of the GST Rules …………………………………………………… D2-43
D2.10.2 Rule 138C of the GST Rules …………………………………………………… D2-44
D2.10.3 Related GST Forms ………………………………………………………………. D2-44
D2.10.4 Circumstances and procedure …………………………………………………. D2-45
D2.10.5 Defense available ………………………………………………………………….. D2-46
D2.11 Manner of dealing with difference in liability reported in GSTR-1/1A and that
reported in GSTR-3B ………………………………………………………………………….. D2-50
D2.11.1 Rule 88C of the GST Rules …………………………………………………….. D2-50
D2.11.2 Rule 59(6)(d) of the GST Rules ……………………………………………….. D2-51
D2.11.3 Related GST Forms ………………………………………………………………. D2-51
D2.11.4 Analysis ………………………………………………………………………………. D2-51
D2.11.5 Process/Steps of Order and Objection ………………………………………. D2-52
D2.12 Manner of dealing with difference in liability reported in GSTR-2B and that
reported in GSTR-3B …………………………………………………………………………. D2-53
D2.12.1 Rule 88D of the GST Rules …………………………………………………….. D2-53
D2.12.2 Related GST Forms ………………………………………………………………. D2-54
D2.12.3 Process/Steps of Order and Objection ………………………………………. D2-54
D2.13 Intimation of certain amounts liable to be recovered under
section 79 of the Act …………………………………………………………………………… D2-55
D2.13.1 Rule 142B of the GST Rules …………………………………………………… D2-55
D2.13.2 Related GST Forms ………………………………………………………………. D2-55
D2.14 Service of Notice, Order, Decision, etc. (Sec 169) ……………………………………….. D2-55
D2.14.1 Manner of service …………………………………………………………………. D2-55
D2.14.2 To whom service may be made ……………………………………………….. D2-57
D2.14.3 Deeming provisions in relation to service ………………………………….. D2-57
Appendix-1 ……………………………………………………………………………………….. D2-58
Appendix-2 ……………………………………………………………………………………….. D2-59
Appendix-3 ……………………………………………………………………………………….. D2-60
Appendix-4 ……………………………………………………………………………………….. D2-61
Appendix-5 ……………………………………………………………………………………….. D2-61
Appendix-6 ……………………………………………………………………………………….. D2-63
Appendix-7 ……………………………………………………………………………………….. D2-64
Appendix-8 ……………………………………………………………………………………….. D2-64
Appendix-9 ……………………………………………………………………………………….. D2-66
Appendix-10 ……………………………………………………………………………………… D2-67
Appendix-11 ……………………………………………………………………………………… D2-68
Appendix-12 ……………………………………………………………………………………… D2-70
Appendix-13 ……………………………………………………………………………………… D2-71
Appendix-14 ……………………………………………………………………………………… D2-72
Appendix-15 ……………………………………………………………………………………… D2-73
Appendix-16 ……………………………………………………………………………………… D2-73
Appendix-17 ……………………………………………………………………………………… D2-75
Appendix-18 ……………………………………………………………………………………… D2-76
Appendix-19 ……………………………………………………………………………………… D2-78
Appendix-20 ……………………………………………………………………………………… D2-81
Appendix-21 ……………………………………………………………………………………… D2-83
Appendix-22 ……………………………………………………………………………………… D2-85
PART – E
APPEALS
Chapter E1 Appeals under the GST …………………………………………………….. E1-1
E1.1 Legislative provisions …………………………………………………………………………….. E1-2
E1.1.1 Sec 107 of the GST Act …………………………………………………………….. E1-2
E1.1.2 Sec 111 of the GST Act …………………………………………………………….. E1-4
E1.1.3 Sec 112 of the GST Act …………………………………………………………….. E1-5
E1.1.4 Sec 113 of the GST Act …………………………………………………………….. E1-7
E1.1.5 Rule 108 of the GST Rules ………………………………………………………… E1-8
E1.1.6 Rule 109 of the GST Rules ………………………………………………………. E1-10
E1.1.7 Rule 109A of the GST Rules ……………………………………………………. E1-11
E1.1.8 Rule 109C of the GST Rules ……………………………………………………. E1-12
E1.1.9 Rule 110 of the GST Rules ………………………………………………………. E1-12
E1.1.10 Rule 111 of the GST Rules ………………………………………………………. E1-14
E1.1.11 Rule 112 of the GST Rules ………………………………………………………. E1-15
E1.1.12 Rule 113 of the GST Rules ………………………………………………………. E1-16
E1.1.13 Rule 113A of the GST Rules ……………………………………………………. E1-16
E1.1.14 Related GST Forms ……………………………………………………………….. E1-17
E1.2 Appellate levels in the GST Act …………………………………………………………….. E1-17
E1.2.1 Appellate levels in the GST Act ……………………………………………….. E1-17
E1.2.2 Who may file appeal ………………………………………………………………. E1-18
E1.2.3 Appellate Authority [Rule 109A] ……………………………………………… E1-18
E1.3 Time limit of filing and disposal of appeal – A Glance ……………………………….. E1-19
E1.4 Appeal/Application by the CGST/SGST Department before the Appellate
Authority/Tribunal ……………………………………………………………………………… E1-22
E1.5 Time limit of filing of appeal …………………………………………………………………. E1-24
E1.5.1 Calculation of time limit …………………………………………………………. E1-24
E1.5.2 Date of Service of the order ……………………………………………………… E1-25
E1.5.3 Condonation of delay …………………………………………………………….. E1-25
E1.6 Pre-deposit – Condition for filing of appeal ………………………………………………. E1-32
E1.7 Manner of filing of appeal …………………………………………………………………….. E1-36
E1.7.1 Electronically filing ………………………………………………………………… E1-36
E1.7.2 Filing of appeal in off-line mode ……………………………………………….. E1-36
E1.7.3 Manner of submitting of copy of impugned order / decision before the
Appellate Authority ……………………………………………………………….. E1-37
E1.7.4 Filing fee ……………………………………………………………………………… E1-38
E1.8 No right of appeal or non-appealable decisions & orders ……………………………. E1-38
E1.8.1 Appeal can’t be filed by the Department in certain cases……………….. E1-38
E1.8.2 Non-appealable decisions and orders…………………………………………. E1-39
E1.9 Withdrawal of appeal …………………………………………………………………………… E1-40
E1.10 Disposal of appeal by the Appellate Authority ………………………………………….. E1-40
E1.11 Filing of appeal against rejection of revised TRAN-1 …………………………………. E1-43
E1.12 Constitution of Appellate Tribunal and Benches thereof …………………………….. E1-44
E1.13 Procedure before the Appellate Tribunal …………………………………………………. E1-45
E1.14 Manner of filing of Appeal before the Appellate Tribunal …………………………… E1-46
E1.15 Manner of filing of Application before the Appellate Tribunal …………………….. E1-49
E1.16 Withdrawal of Appeal before the Appellate Tribunal ………………………………… E1-50
E1.17 Disposal of appeal by the Appellate Tribunal …………………………………………… E1-50
E1.18 Production of additional evidence before the Appellate Authority or the
Appellate Tribunal …………………………………………………………………………….. E1-51
Appendix – 1 …………………………………………………………………………………………………… E1-53
Chapter E2 Sample Appellate Documents ……………………………………………… E2-1
E2.1 Sample Index of Appeal …………………………………………………………………………. E2-1
E2.2 Sample Calendar of Events …………………………………………………………………….. E2-2
E2.3 Sample Statement of Facts ……………………………………………………………………… E2-3
E2.4 Sample Grounds of Appeal …………………………………………………………………….. E2-7
E2.5 Sample Prayer…………………………………………………………………………………….. E2-13
Chapter E3 Practical Aspects – Appeals ………………………………………………… E3-1
E3 How to file appeal before the First Appellate Authority – Practical Aspects …….. E3-1
E3.1 Filing an Appeal against Demand Order ……………………………………… E3-1
E3.2 Filing an Appeal against Registration Order …………………………………. E3-6

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