Reply to a Show Cause Notice in GST

Mr. C SANJEEVA RAO | Last updated: 11 May 2020

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Quick Summary

A GST Show Cause Notice is issued by authorities to propose additional tax, penalties, or interest. To reply, you must file objections in GST CMP 06, providing supporting documents. It's crucial to analyse the notice, gather evidence, and identify any missing points. The law provides specific timeframes for filing your reply, typically three to six months before an order is issued, ensuring principles of natural justice are followed.

Introduction: Before resorting to the assessment, the GST authorities shall issue a show cause notice proposing the tax due to the department basing on the information submitted in compliance to the assessment notification. The GST authorities shall call for the objections, if any, and then the r

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FAQ :

A GST Show Cause Notice is issued by GST authorities to a registered taxable person, asking why additional tax, penalty, or interest should not be levied, based on their findings from inquiries or audits.

Upon receiving a GST Show Cause Notice, you should carefully analyse its contents, gather all necessary evidence and supporting documents, and identify any missing points in the notice before drafting your reply.

The CGST Act, 2017, provides a timeframe of three months prior to the issuance of an order under Section 73 and six months prior to the issuance of an order under Section 74 for filing objections.

Your reply should be written in simple, lucid language, avoiding argumentative words. Presenting details in a tabulated format can aid understanding. If confident, you may cite relevant case laws, but ensure they are applicable to your situation.

Filing objections in response to a Show Cause Notice provides an opportunity for the registered taxable person to present their case and satisfy the principles of natural justice before any final order is passed.