Notice and Assessment

GST Notices & Assessment – Understanding, Types, Responses & Compliance

Has your business received a GST notice? Are you facing a GST assessment? Understanding GST compliance can be overwhelming, but timely responses and professional guidance can save you from penalties and legal hassles.

At Indefine, we specialize in handling GST notices, responding to tax authorities, and ensuring compliance with GST assessments. Our experts help businesses navigate the complexities of GST laws and avoid unnecessary financial burdens.

What is a Notice and Assessment?

GST assessment is the process by which tax authorities determine a taxpayer’s liability based on the available records.

Under the Goods and Services Tax (GST) Act, tax authorities issue notices to businesses for various reasons, including:

Discrepancies in returns
Late filings
Incorrect Input Tax Credit (ITC) claims
Suspicions of tax evasion
Non-compliance with GST rules

GST assessments are conducted to determine the actual tax liability of a taxpayer.

GST Assessment – Types & Procedure

GST assessment is the process by which tax authorities determine a taxpayer’s liability based on the available records.

Types of GST Assessments

Type of Assessment	Description	Authority
Self-Assessment (Section 59)	Done by taxpayers themselves when filing GST returns.	Taxpayer
Provisional Assessment (Section 60)	Requested by taxpayers when tax rates/classifications are uncertain.	GST Officer
Scrutiny Assessment (Section 61)	Conducted when discrepancies are found in GST returns.	GST Officer
Best Judgment Assessment (Section 62 & 63)	Applied when returns are not filed or incomplete.	GST Officer
Summary Assessment (Section 64)	Applied when authorities find strong evidence of tax liability.	GST Commissioner

Who Issues GST Notices?

GST notices are generally issued by:

Jurisdictional GST Officers
Central Board of Indirect Taxes and Customs (CBIC)
State GST Departments

Failing to respond to these notices within the prescribed time frame may result in penalties, interest charges, or even cancellation of GST registration.

Types of GST Notices & Their Implications

1. Show Cause Notice (SCN) – Section 73 & 74

Issued when tax authorities suspect short payment, tax evasion, or excess ITC claims.
Section 73: When no fraud or willful misstatement is involved.
Section 74: When fraud, willful misstatement, or suppression of facts is suspected.
Implication: Non-compliance may lead to penalties up to 100% of the tax due.

2. Notice for Mismatch in GST Returns (GSTR-1 vs. GSTR-3B or GSTR-2A)

Issued when discrepancies are found in outward supplies (sales), ITC claims, or tax payments.
Common reason: Mismatch between GSTR-1 (Sales Data) & GSTR-3B (Tax Liability) or GSTR-2A (ITC auto-populated data).
Implication: If unresolved, the ITC claim may be reversed, leading to additional tax liability.

3. Notice for Non-Filing or Late Filing of GST Returns

Issued when a taxpayer fails to file GST returns on time.
Can lead to interest on late payment, penalties, and blocking of e-way bill generation.
Implication: Non-compliance may result in GST registration suspension.

4. Audit Notice under Section 65 & Special Audit under Section 66

Issued when authorities conduct a detailed examination of books of accounts, ITC, tax payments, and compliance history.
Special audits are directed when complex transactions or suspected tax evasion is observed.
Implication: May lead to additional tax liability and penalties.

5. Scrutiny Notice – Section 61

Issued if GST returns appear inconsistent or incorrect based on pre-defined risk parameters.
The taxpayer must provide explanations or rectify errors within the specified time.
Implication: Non-compliance may lead to further proceedings like an audit or investigation.

6. Notice for GST Registration Cancellation – Section 29

Issued when a taxpayer fails to comply with GST law, such as non-filing of returns, misuse of ITC, or fake invoicing.
Implication: If not responded to, GST registration may be cancelled, affecting business continuity.

7. Demand Notice – Section 73 & 74

Issued when tax authorities demand payment of tax, interest, or penalties based on audit findings, scrutiny, or other assessments.
Implication: Legal action may be initiated if unpaid within the stipulated time.

8. Summon Notice under Section 70

Issued when authorities require personal appearance for tax investigations or inquiries related to GST frauds.
Implication: Non-compliance can lead to serious legal consequences.

How to Respond to GST Notices?

Ignoring a GST notice can lead to severe consequences, including penalties, interest, and even prosecution. Follow these steps to respond effectively:

Understand the Notice

Identify the reason for the notice and check its validity.

Gather Supporting Documents

Collect invoices, tax filings, and financial records.

Draft a Professional Response

Explain the facts and address concerns clearly.

Submit the Response

File it through the GST portal (www.gst.gov.in) or in person, as required.

Seek Expert Assistance

Ensure compliance and avoid penalties with professional help.

Need Help? Get Our Expert GST Advisory Services for Timely & Accurate Responses!

Why Choose Indefine for GST Notices & Assessments?

Expert Consultation

Our GST specialists analyze notices and draft professional responses.

Compliance & Risk Mitigation

We help businesses avoid penalties and legal complications.

End-to-End Support

From documentation to representation before tax authorities.

Hassle-Free Process

We handle everything while you focus on your business.

Contact Us for Professional GST Assistance!

If you’ve received a GST notice or assessment order, don’t wait until it’s too late. Our team of GST experts is here to help you respond, comply, and resolve disputes efficiently.

Let us simplify GST compliance for you! Contact us today.