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Posted on December 20, 2021
Notices and Appeals under GST in India
Notices under GST Act will be served by the concerned authorities of GST. This will be sent to the tax payers for notifying them regarding any default committed or made by them or failure to follow or comply with the GST Act or Laws.
Under certain circumstances, the notice might also be sent for collecting more information from the tax payers. The GST Authorities would send the notice to the tax payers on the basis of the GST Returns filed by the tax payers, or hints that is received by the from a third party or another Government Department.
Notices will include the following majorly based on the objective of the same:
- show cause notices or
- scrutiny notices or
- demand notices.
And a tax payer on the receipt of such notice should take a proper action without any delay which might either be correcting the default or providing a proper reply to the concerned authorities within the time limit prescribed by the notice served.
Common Reasons for which Notices are Send under GST
- Due to the Mismatch in details reported between GSTR-1 & GSTR-3B
- Differences in Input Tax credit claims made in GSTR-3B compared with GSTR-2A
- Delay in filing of GSTR-1 and GSTR-3B on a continuous basis for more than six months
- Inconsistent declaration of details in the GSTR-1 and e-way bill portal
- Non-payment or the short-payment of the tax liability with or without the intent to commit a fraud
- GST Refund was wrongly made with or without the intention to commit a fraud
- The Input tax credit is wrongly availed or utilised, while paying the tax liability
- Where a business which is holding the liabilityto take registration under GST law, but has failed to obtain such registration and also pay or dischargethe tax liability along with other liabilities applicable to the tax payer under the GST Act
- There are irregularities found in the reporting of Exports as per GSTR-1 with the information available on the ICEGATE
- For the conducting of the audit by the GST Authorities
- Where the returnswere required to be furnished under GST by the tax payer, but was not submitted within the time limit that was stipulated by the GST Act.
Modes by which Notices under GST will be Send
Section 169 of the GST Act, deals with the various ways or modes which can be used for sending the notices under GST to the tax payers. If there is a prescribed manner or mode by which the notice should be sent and the same was not complied with by the concerned authorities, then such notice shall become invalid under the law. The various modes using which the notices can be send under the GST Act includes:
- Delivering on hand to the taxpayer or representative if there is any or using a messenger for delivering such notice;
- The authority can send the notice through registered post or even using a speed post on the address which is of the last known place of business;
- Sending the notice through email address and thereby communicating the same;
- Displaying the notice on the GST portal after logging in, such that it is communicated easily;
- By making the notice publicly by posting in the regional newspaper which is being circulated in the locality of such tax payer.
- If none of the above means are used, then it should be done by affixing it in a prominent place at the taxpayers last known place of business or even his residence. If this is not found to be reasonable by the tax authorities, then they can affix a copy on the notice board of the office of the concerned officer or authority as a last way.
Appeal under GST
Unlike notices, appeals occurs when there is a dispute which is a legal dispute. It is nothing but an application which is filed with a higher court, when the tax payer is not satisfied with any decision or order which is passed by the lower court or the tax department or authorities. And the tax payer wants to reverse such decisions or orders passed.
The following steps to be followed for providing an appeal under the GST:
- i) As per Section 107 of the Act, if any person is aggrieved by the order of Adjudicating Authority, then first appeal can be made to First Appellate Authority.
- ii) As per Section 109 and 110 of the Act, if any person is aggrieved by the order of First Appellate Authority, then second appeal can be made to Appellate Tribunal.
iii) Further, if any person is aggrieved by the order of Appellate Tribunal, then third appeal can be made to High Court.
- iv) Lastly, as per Section 117 and 118 of the Act, if any person is aggrieved by the order of the High Court, then last appeal can be made to Supreme Court.
Rules for Filing GST Appeals
The appeals can be made in the prescribed forms along with the required fees as per GST. And such fees will include:
- The full amount of tax
- Any fee or penalty occurring as per the order,
- 10% of the amount of dispute, in case where the appeal is from officer or Commissioner of GST then fees will not be applicable.
The appeals can be filed by using an Authorized Representative for appearing before the GST Officer/First Appellate Authority/Appellate Tribunal, instead of such tax payer and this shall include the following:
- a relative
- a regular employee
- a lawyer or an advocate who is practising in a court (which can be any) in India
- any chartered accountant or cost accountant or company secretary, with a valid certificate of practice
- anofficer who has attained retirement from the Tax Department of any State Government or of the Excise Dept. whose rank is falling minimum as a Group-B gazetted officer
- any tax return preparer.
When Appeals Cannot be Filed?
Appeals cannot be made for the following decisions which are taken by the GST Officer:
- An order which shall be provided for transferring the proceedings from one officer to another officer,
- An order to be provided to seize or may be to retain books of account and other documents,
- An order which is sanctioning the prosecution to be done under the Act,
- An order which would allow the person to pay the tax and other amount in installments.