ICAI Raises 11 Concerns on Mass GST SCN for FY 2017-18 in September 2023

Last updated: 18 October 2023

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The Institute of Chartered Accountants of India (ICAI) has formally raised 11 significant concerns regarding the mass issuance of Goods and Services Tax (GST) show cause notices for the financial year 2017-18. These notices, primarily issued in September 2023, appear to have been generated hastily and generically, often based on auto-populated data without proper verification of individual taxpayer circumstances or consideration of prior rectifications and proceedings. ICAI argues that many notices lack legal basis and fail to adhere to procedural requirements, potentially leading to unnecessary litigation and burden on businesses.

ICAI/IDTC/2023-24/Rep/28 16th October 2023 Shri Rakesh Agarwala Principal Commissioner of State Tax Government of Assam Kar Bhawan, G S Road Guwahati Dear Sir, Sub: Mass show cause notices on GST issued under section 73 for the Financial Year 2017-18 in the month of September 2023 The Institute of Chartered Accountants of India (ICAI) is a statutory body established on 1st July 1949 by an Act of Parliament, viz., The Chartered Accountants Act, 1949, for regulating and developin

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FAQ :

ICAI has raised 11 concerns about the mass issuance of GST show cause notices for FY 2017-18, which appear to be generic, hastily issued, and based on auto-populated data without individual case scrutiny.

The notices in question were issued for the financial year 2017-18.

The notices are primarily for alleged short payment of GST, reversal of input tax credit (ITC) due to mismatches, and issues related to output GST liability.

ICAI points out that notices were issued without considering prior rectifications, filed DRC-03s, completed proceedings (ASMT 12), or referencing ongoing audits, appeals, or enforcement activities.

ICAI requests that notices with identified defects be dropped without taxpayer reply, a standard operating procedure be established, and a special cell be formed to scrutinise such notices.

Yes, ICAI recommends waiving interest and penalties on demands arising from these notices for FY 2017-18 as an amnesty measure, given the initial challenges of GST implementation.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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