Reply to Sec 16(4) Notice

Dear Sir/Madam,

I am in receipt of the notice under Section 16(4) of the GST Act, 2017, dated [insert date]. I acknowledge receipt of the same.

In response to the notice, I would like to submit that I have duly furnished all the details in my GST returns filed for the relevant period. The returns were filed within the due date and all the information was provided to the best of my knowledge and belief.

I request you to kindly provide me with specific details regarding the alleged discrepancies or omissions in my GST returns so that I may respond in a more informed manner. I would also appreciate it if you could provide me with copies of any documents or evidence that you may have in your possession regarding the matter.

I assure you that I will extend my full cooperation and assistance in this matter and would appreciate an early resolution to the issue.

Thank you for your time and attention.

Sincerely,

[Your Name]
[Your Address]
[Your GSTIN]

A Section 16(4) notice means the department is questioning ITC you claimed beyond the statutory deadline.

Under CGST Act, Section 16(4): ITC on invoices for a financial year cannot be availed after November 30 of the following year, OR the date of filing the annual GSTR-9, whichever is earlier.

So if you claimed FY 2024-25 invoices after November 30, 2025 in GSTR-3B, those credits are time-barred regardless of whether they appear in GSTR-2B.

Steps to respond:
1. Identify the specific invoices flagged. Check which financial year they belong to.
2. If they are genuinely late claims, reverse the ITC in Table 4B(2) of the next GSTR-3B and pay the tax with interest at 18% per annum from the date of utilization.
3. If the invoices are actually for FY 2025-26 (not the prior year), this is a departmental error. Reply with invoice copies and GSTR-2B screenshots showing the correct tax period.
4. File the reply through GST portal: Services > User Services > View Notices and Orders.

Getting the categorization right (time-barred vs wrong-year) determines whether you pay or contest.

This [GST return filing guide](https://taxgarden.in/blog/gst-return-filing-proprietorship-india-step-by-step-2026) covers ITC reporting in GSTR-3B and how to avoid similar notices going forward.

Check these defences before drafting the reply:

1. Sec 16(5) (Finance Act 2024, retrospective from 1 July 2017): ITC for FY 2017-18 to 2020-21 is allowed if claimed in a GSTR-3B filed up to 30 November 2021. Many 16(4) demands for those years fail on this alone.

2. Sec 16(6): where registration was cancelled and later revoked, ITC is allowed in the return filed within 30 days of the revocation order, if the original time limit was alive on the cancellation date.

3. Time limit: 30 November following the end of the FY (from FY 2021-22, Finance Act 2022), or the annual return date if earlier. Check whether the officer applied the old (September) cut-off.

4. Late GSTR-3B filing: Sec 16(4) bars only ITC claimed after the cut-off date. A late 3B for an earlier month, filed before 30 November, is still within time.

5. Rectification: where a final order was already passed, Notf 22/2024-CT and Circular 237/31/2024 provide a special rectification procedure under Sec 148. Apply within the notified window.

Structure the reply as: facts → legal provision → computation showing eligible ITC → prayer to drop the demand.