Reply of notice to gst department
This query is : Resolved
Quick Summary
03 October 2025
Notice Under Section 73 of UPGST & CGST Act 2017
Summary of Show Cause Notice
You were earlier issued a notice under Section 61 of the GST Act with reference No. ZD0907251364652 dated 14.07.2025 regarding deficiencies found in the return filed by you for the year 2021-22 and the data obtained through GSTIN, but you did not file any online/offline application in compliance with the notice issued to you. has been made.
Therefore, on the basis of the returns filed and the reports available on MIS, the tax liability is determined on the following points. 1-Outward supplies of tax-free goods of ₹ 0-
2374268.00 have been declared by you in GSTR-9 filed for the year 2021-22, whereas ITC of ₹ 0-
5667.18 is being shown in your GSTR-2A/2B, which has been claimed by you in GSTR-3B.
Notice Under Section 73 of UPGST & CGST Act 2017
Summary of Show Cause Notice
You were earlier issued a notice under Section 61 of the GST Act with reference No. ZD0907251364652 dated 14.07.2025 regarding deficiencies found in the return filed by you for the year 2021-22 and the data obtained through GSTIN, but you did not file any online/offline application in compliance with the notice issued to you. has been made.
Therefore, on the basis of the returns filed and the reports available on MIS, the tax liability is determined on the following points. 1-Outward supplies of tax-free goods of ₹ 0-
2374268.00 have been declared by you in GSTR-9 filed for the year 2021-22, whereas ITC of ₹ 0-
5667.18 is being shown in your GSTR-2A/2B, which has been claimed by you in GSTR-3B.
03 October 2025
A Notice under Section 73 of the UPGST & CGST Act 2017 is a formal communication from the tax authorities regarding discrepancies found in GST returns and potential short payment or wrongful availment of Input Tax Credit (ITC). In your case, the notice summarizes the following points:
A previous notice under Section 61 referenced discrepancies in your returns for the financial year 2021-22 (Reference No. ZD09072 fiftyone 364652, dated 14.07.2025).
The tax department noted that you did not respond to that notice, either online or offline.
Based on the filed returns and available MIS reports, the department has established certain discrepancies.
Specific Issue:
Your GSTR-9 for 2021-22 shows "Outward supplies of tax-free goods" totaling ₹ 23,74,268.00.
Your ITC as per GSTR-2A/2B is ₹ 5,667.18, which you have claimed in GSTR-3B.
The issue flagged appears to be a potential discrepancy between the nature of your outward supplies (declared as "tax-free") and the ITC you have claimed.
A previous notice under Section 61 referenced discrepancies in your returns for the financial year 2021-22 (Reference No. ZD09072 fiftyone 364652, dated 14.07.2025).
The tax department noted that you did not respond to that notice, either online or offline.
Based on the filed returns and available MIS reports, the department has established certain discrepancies.
Specific Issue:
Your GSTR-9 for 2021-22 shows "Outward supplies of tax-free goods" totaling ₹ 23,74,268.00.
Your ITC as per GSTR-2A/2B is ₹ 5,667.18, which you have claimed in GSTR-3B.
The issue flagged appears to be a potential discrepancy between the nature of your outward supplies (declared as "tax-free") and the ITC you have claimed.
03 October 2025
Section 73 deals with recovery of tax in cases where there is non-payment or short payment of tax, or wrongful availment of ITC for reasons other than fraud, willful misstatement, or suppression of facts.
The notice is a "Show Cause" requiring you to explain why additional tax should not be recovered from you based on the findings.
The notice requires a timely and comprehensive reply with explanation and supporting documents.
If there is a valid reason for the discrepancy (for example, clerical error, omission rectified in later returns, or legitimate claim to ITC), provide documentary proof.
If you agree with the findings, voluntary payment of tax (with interest) may be made to avoid penalty.
Ignoring this notice can lead to the passing of an ex parte order with tax demand, interest, and possibly penalty.
The notice is a "Show Cause" requiring you to explain why additional tax should not be recovered from you based on the findings.
The notice requires a timely and comprehensive reply with explanation and supporting documents.
If there is a valid reason for the discrepancy (for example, clerical error, omission rectified in later returns, or legitimate claim to ITC), provide documentary proof.
If you agree with the findings, voluntary payment of tax (with interest) may be made to avoid penalty.
Ignoring this notice can lead to the passing of an ex parte order with tax demand, interest, and possibly penalty.
03 October 2025
Immediate Actions Recommended
Review all supporting documents (purchase invoices, reconciliation statements, ledger extracts) for the period in question.
Prepare a point-by-point reply with factual explanations and legal reasoning.
File your response through the GST portal using the reference number mentioned in the notice.
Consider consulting a qualified GST professional or chartered accountant for preparing the reply and ensuring compliance.
Neglecting to reply could lead to demand orders and recovery action, so it is important to act promptly.
Review all supporting documents (purchase invoices, reconciliation statements, ledger extracts) for the period in question.
Prepare a point-by-point reply with factual explanations and legal reasoning.
File your response through the GST portal using the reference number mentioned in the notice.
Consider consulting a qualified GST professional or chartered accountant for preparing the reply and ensuring compliance.
Neglecting to reply could lead to demand orders and recovery action, so it is important to act promptly.
03 October 2025
Good Luck.....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- TDS _Long term Capital Gain ref.sec 214 Table 2
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Traces submitting correction statement error
- Gst on travel by air for business purposes
- Rent claimed on building given on permissive possession basis
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
