How to handle GST Notices, Scrutiny, Assessment and Adjudication

PART – A

PREAMBLE AND MAJOR LITIGATIONS

A1 Concepts and Framework of GST………………………………………………. A1-1
A2 Major litigation areas in the GST……………………………………………….. A2-1

PART – B

SCRUTINY, ASSESSMENT AND AUDIT

B1 Scheme of Assessment……………………………………………………………….B1-1
B2 Provisional Assessment ……………………………………………………………..B2-1
B3 Scrutiny of Returns …………………………………………………………………..B3-1
B4 Non-filer of Returns ………………………………………………………………….B4-1
B5 Assessment of Unregistered Persons……………………………………………..B5-1
B6 Summary Assessment………………………………………………………………..B6-1
B7 GST Audit ……………………………………………………………………………..B7-1
B8 Assessment and Audit related Provisions & Forms …………………………B8-1

PART – C

SHOW CAUSE NOTICE UNDER SEC 73/74/74A

C1 SCN under sec 73/74/74A – Scope, Circumstances and Time Limit …. C1-1
C2 SCN under sec 73/74/74A – Voluntary Payment ………………………….. C2-1
C3 SCN under sec 73/74/74A – Defense and Replies…………………………. C3-1
C4 SCN under sec 73/74/74A – Adjudication……………………………………. C4-1
C5 Tax collected but not paid…………………………………………………………. C5-1
C6 SCN under sec 73/74/74A – Practical aspects………………………………. C6-1
C7 SCN under sec 73/74/74A related Provisions ………………………………. C7-1
C8 Amnesty Scheme under the GST ……………………………………………….. C8-1

PART – D

SUMMONS AND OTHER NOTICES

D1 Summons under the GST ………………………………………………………….D1-1
D2 Other Notices under the GST …………………………………………………….D2-1
PART – E
APPEALS
E1 Appeals under the GST ……………………………………………………………E1-1
E2 Sample Appellate Documents……………………………………………………E2-1
E3 Partical Aspect – Appeals…………………………………………………………..E3-1
About the Authors……………………………………………………………………………………………………………v
Preface ……………………………………………………………………………………………………………………..vii
Contents at a Glance ……………………………………………………………………………………………………….ix
Table of Cases……………………………………………………………………………………………….. xxvii

PART – A

PREAMBLE AND MAJOR LITIGATIONS

Chapter A1 Concepts and Framework of GST………………………………………….A1-1
A1.1 Basic Concepts of the GST…………………………………………………………………….. A1-1
A1.2 Legislative Framework………………………………………………………………………….. A1-3
A1.3 Meaning and Scope of the term “Supply”…………………………………………………. A1-6
A1.4 Concept of distinct persons ……………………………………………………………………. A1-9
A1.5 Taxable event and charging provisions…………………………………………………….A1-10
A1.6 Rates of GST ………………………………………………………………………………………A1-12
A1.7 Exemptions and exempt supplies ……………………………………………………………A1-13
A1.8 Time and Value of supply ……………………………………………………………………..A1-13
A1.8.1 Time of Supply ………………………………………………………………………A1-13
A1.8.2 Value of supply ………………………………………………………………………A1-15
A1.9 Zero Rated Supplies……………………………………………………………………………..A1-16
A1.10 Export of goods and services………………………………………………………………….A1-18
A1.10.1 Export of goods ……………………………………………………………………..A1-18
A1.10.2 Export of services……………………………………………………………………A1-18
A1.10.3 Supplies in territorial waters……………………………………………………..A1-19
A1.11 Supply to SEZ Units and Developers ………………………………………………………A1-20
A1.11.1 Special Economic Zone …………………………………………………………..A1-20
A1.11.2 Special Economic Zone Developer…………………………………………….A1-20
A1.11.3 Supplies to the SEZ Units and Developer……………………………………A1-20
A1.11.4 Two options are available to the supplies made in SEZ area …………..A1-21
A1.12 Output Tax …………………………………………………………………………………………A1-21
A1.13 Input Tax Credit (ITC) …………………………………………………………………………A1-22
A1.14 Due date of payment of Self-Assessed Tax ……………………………………………….A1-24
A1.15 Persons liable to file returns……………………………………………………………………A1-25
A1.16 Types of returns or reports and periodicity ……………………………………………….A1-25
A1.17 Person-wise returns………………………………………………………………………………A1-28
A1.18 Limitation period for correction/modification…………………………………………..A1-29
A1.19 Refund (Section 54 & 55 of the GST Act)…………………………………………………A1-30
A1.19.1 Circumstances ……………………………………………………………………….A1-30
A1.19.2 Time limit……………………………………………………………………………..A1-31
A1.19.3 Procedure for claiming refund…………………………………………………..A1-33
A1.20 E-way bill …………………………………………………………………………………………..A1-33
A1.21 Job Work……………………………………………………………………………………………A1-34
A1.22 Tax Invoice, Bill of Supply, Debit/Credit Notes………………………………………..A1-35
A1.22.1 E-invoice ………………………………………………………………………………A1-35
A1.22.2 Tax Invoice/Bill of Supply/Delivery Challan – Features ……………….A1-37
A1.22.3 Circumstances when a debit note or credit note is issued ……………….A1-37
A1.23 Accounts and Records ………………………………………………………………………….A1-38
A1.23.1 Maintenance of Accounts and Records (Sec 35 of the GST Act)……..A1-38
A1.23.2 Retention of Accounts and Records (Sec 36 of the GST Act)………….A1-39
A1.24 Interest under GST ………………………………………………………………………………A1-40
A1.24.1 Interest payable by the person …………………………………………………..A1-40
A1.24.2 Interest payable to the person……………………………………………………A1-41
A1.25 Penalties under GST…………………………………………………………………………….A1-42
Chapter A2 Major litigation areas in the GST ………………………………………….A2-1
A2.1 Supply, time of supply and its value ………………………………………………………… A2-1
A2.2 Classification and rates of tax…………………………………………………………………. A2-4
A2.3 Input tax credit ……………………………………………………………………………………. A2-5
A2.4 Registration and its cancellation……………………………………………………………… A2-6
A2.5 Refund……………………………………………………………………………………………….. A2-6
A2.6 Movement of goods and e-way bill………………………………………………………….. A2-6
A2.7 Mismatches ………………………………………………………………………………………… A2-7
A2.8 Others………………………………………………………………………………………………… A2-7

PART – B

SCRUTINY, ASSESSMENT AND AUDIT

Chapter B1 Scheme of Assessment & Audit……………………………………………. B1-1
B1.1 Assessments under the GST…………………………………………………………………….B1-1
B1.2 Self-Assessment …………………………………………………………………………………….B1-3
B1.2.1 Meaning of Self-assessment………………………………………………………..B1-3
B1.2.2 Steps of self-assessment……………………………………………………………..B1-4
B1.2.3 Precautions while making self-assessment …………………………………….B1-5
B1.3 Provisional Assessment…………………………………………………………………………..B1-6
B1.4 Scrutiny of returns …………………………………………………………………………………B1-7
B1.5 Non filer of Returns – Best Judgment Assessment ……………………………………….B1-8
B1.6 Unregistered persons – Best Judgment Assessment………………………………………B1-9
B1.7 Summary Assessment …………………………………………………………………………..B1-10
B1.8 Audit under the GST ……………………………………………………………………………B1-11
B1.9 Show cause notice under sec 73/74/74A and Adjudication…………………………B1-12
B1.10 Assessment proceedings not to be invalid …………………………………………………B1-13
Chapter B2 Provisional Assessment…………………………………………………….. B2-1
B2.1 Legislative provisions……………………………………………………………………………..B2-1
B2.1.1 Sec 60 of the GST Act – Provisional assessment …………………………….B2-1
B2.1.2 Rule 98 of the GST Rules – Provisional assessment ………………………..B2-2
B2.1.3 Related GST Forms………………………………………………………………….B2-4
B2.2 Provisions at a glance……………………………………………………………………………..B2-4
B2.3 Circumstances of Provisional Assessment ………………………………………………….B2-5
B2.4 Who can make the application and to whom………………………………………………B2-6
B2.5 Process/Steps for Provisional Assessment ………………………………………………….B2-6
B2.6 Final Assessment after the Provisional Assessment ……………………………………..B2-9
B2.6.1 Framing the final assessment ……………………………………………………..B2-9
B2.6.2 Liability of interest at the time of final assessment ………………………….B2-9
B2.6.3 Release of security ………………………………………………………………….B2-10
B2.7 FAQ by Tripura GST Department (Extracts) ……………………………………………B2-10
B2.8 Show cause notice after Provisional Assessment………………………………………..B2-12
B2.9 Advance Ruling vs. Provisional Assessment ……………………………………………..B2-13
B2.10 Aggrieved against the Order – Right to Appeal………………………………………….B2-14
B2.11 Procedural and Practical Aspects – FAQ by GSTN…………………………………….B2-14
Chapter B3 Scrutiny of Returns …………………………………………………………. B3-1
B3.1 Legislative provisions……………………………………………………………………………..B3-1
B3.1.1 Sec 61 of the GST Act……………………………………………………………….B3-1
B3.1.2 Rule 99 of the GST Rules…………………………………………………………..B3-1
B3.1.3 Related GST Forms………………………………………………………………….B3-2
B3.2 Provisions at a glance……………………………………………………………………………..B3-2
B3.3 Proper Officer and Selection for Scrutiny …………………………………………………..B3-4
B3.3.1 Who is the Proper officer for scrutiny of returns …………………………….B3-4
B3.3.2 Selection of returns for scrutiny…………………………………………………..B3-4
B3.4 Reasons/Parameters for scrutiny………………………………………………………………B3-5
B3.4.1 Based upon Instruction No. 02/2022-GST (Annexure B),
dated 22 March 2022 ………………………………………………………………..B3-5
B3.4.2 Based upon Haryana GST Returns Scrutiny Manual-2022 …………….B3-10
B3.5 Process/Steps for scrutiny of returns and Conclusion …………………………………B3-11
B3.6 Procedural and Practical Aspects ……………………………………………………………B3-13
B3.7 Aggrieved against the decision of Scrutiny ……………………………………………….B3-17
B3.8 Standard Operating Procedure (SOP) for Scrutiny of returns ……………………….B3-17
Chapter B4 Non-Filer of Returns ……………………………………………………….. B4-1
B4.1 Legislative provisions……………………………………………………………………………..B4-1
B4.1.1 Sec 62 of the GST Act……………………………………………………………….B4-1
B4.1.2 GST Rules………………………………………………………………………………B4-2
A) Rule 68 – Notice to non-filers of returns …………………………………..B4-2
B) Rule 100 – Assessment in certain cases…………………………………….B4-2
B4.1.3 Related GST Forms………………………………………………………………….B4-2
B4.2 Provisions at a glance……………………………………………………………………………..B4-3
B4.3 Reasons/Circumstances………………………………………………………………………….B4-3
B4.4 Process/Steps of making best judgment assessment……………………………………..B4-4
B4.5 Principles of best judgment assessment………………………………………………………B4-6
B4.6 Withdrawal of best judgment assessment …………………………………………………..B4-8
B4.7 Standard Operating Procedure (SOP)………………………………………………………B4-10
B4.8 Actions after issue of Form ASMT-13 ……………………………………………………..B4-12
Chapter B5 Assessment of unregistered persons……………………………………….. B5-1
B5.1 Legislative provisions……………………………………………………………………………..B5-1
B5.1.1 Sec 63 of the GST Act……………………………………………………………….B5-1
B5.1.2 Rule 100 of the GST Rules…………………………………………………………B5-1
B5.1.3 Related GST Forms………………………………………………………………….B5-2
B5.2 Provisions at a glance……………………………………………………………………………..B5-2
B5.3 Circumstances of assessment of unregistered person…………………………………….B5-2
B5.4 Process/Steps of making best judgment assessment……………………………………..B5-4
B5.5 Principles of best judgment assessment………………………………………………………B5-6
B5.6 Procedural and Practical Aspects ……………………………………………………………..B5-6
B5.7 Actions for not responding to the notice in ASMT-14…………………………………B5-11
B5.8 Aggrieved against the Order – Right to Appeal………………………………………….B5-11
Chapter B6 Summary Assessment ………………………………………………………. B6-1
B6.1 Legislative provisions……………………………………………………………………………..B6-1
B6.1.1 Sec 64 of the GST Act……………………………………………………………….B6-1
B6.1.2 Rule 100 of the GST Rules…………………………………………………………B6-2
B6.1.3 Related GST Forms………………………………………………………………….B6-2
B6.2 Circumstances of summary assessment ……………………………………………………..B6-2
B6.3 Process/Steps of making summary assessment……………………………………………B6-4
B6.4 Procedural and Practical Aspects ……………………………………………………………..B6-5
B6.5 Actions for not responding to the notice in ASMT-16…………………………………B6-10
B6.6 Aggrieved against the Order – Right to Appeal………………………………………….B6-10
Chapter B7 GST Audit …………………………………………………………………… B7-1
B7.1 Legislative provisions……………………………………………………………………………..B7-1
B7.1.1 Sec 65 of the GST Act……………………………………………………………….B7-1
B7.1.2 Rule 101 of the GST Rules…………………………………………………………B7-2
B7.1.3 Related GST Forms………………………………………………………………….B7-3
B7.2 Audit under the GST – Objective and principles………………………………………….B7-3
B7.3 Audit under the GST – A Glance……………………………………………………………..B7-4
B7.4 Process/Steps of audit…………………………………………………………………………….B7-5
B7.5 Finalization and proceedings of audit………………………………………………………..B7-6
B7.6 Documents to be filed / to be kept ready for verification ………………………………B7-8
B7.7 Case Laws ……………………………………………………………………………………………B7-9
Chapter B8 Assessment and Audit related Provisions & Forms ……………………… B8-1
B8.1 Assessment & Audit related sections under the GST Act………………………………B8-3
59. Self- assessment. …………………………………………………………………………..B8-3
60. Provisional assessment. …………………………………………………………………B8-3
61. Scrutiny of returns. ……………………………………………………………………….B8-4
62. Assessment of non-filers of returns…………………………………………………..B8-4
63. Assessment of unregistered persons. ………………………………………………..B8-5
64. Summary assessment in certain special cases. ……………………………………B8-5
65. Audit by tax authorities. ………………………………………………………………..B8-6
B8.2 Assessment & Audit related rules under the GST Rules………………………………..B8-7
98. Provisional Assessment. ………………………………………………………………..B8-7
99. Scrutiny of returns. ……………………………………………………………………….B8-8
100. Assessment in certain cases…………………………………………………………….B8-9
101. Audit………………………………………………………………………………………..B8-10
B8.3 Assessment & Audit related Forms …………………………………………………………B8-10
B8.4 Assessment & Audit related Circulars and Instructions……………………………….B8-36

PART – C

SHOW CAUSE NOTICE UNDER SEC 73/74/74A

Chapter C1 SCN under sec 73/74/74A – Scope, circumstances and time limit …….. C1-1
C1.1 Legislative provisions……………………………………………………………………………..C1-2
C1.1.1 Sec 73 of the GST Act……………………………………………………………….C1-2
C1.1.2 Sec 74 of the GST Act……………………………………………………………….C1-3
C1.1.3 Sec 74A of the GST Act…………………………………………………………….C1-4
C1.1.4 Sec 75 of the GST Act……………………………………………………………….C1-6
C1.1.5 Rule 142 of the GST Rules…………………………………………………………C1-6
C1.1.6 Related GST Forms………………………………………………………………….C1-7
C1.1A Sec 74A w.e.f. F.Y. 2024-25…………………………………………………………………….C1-7
C1.1A.1 Sec 74A – At a glance ……………………………………………………………….C1-8
C1.1A.2 Other related amendments……………………………………………………….C1-10
C1.1A.3 Sections 73/74 vs. 74A – Major differences …………………………………C1-11
C1.2 Contents of SCN and its nature………………………………………………………………C1-12
C1.2.1 Notice under sec 73/74/74A – Notice & Summary, separately ………C1-12
C1.2.2 SCN is not a notice, simpliciter…………………………………………………C1-13
C1.2.3 Signatures on the SCN…………………………………………………………….C1-13
C.1.2.4 Bunching of SCN for multiple years…………………………………………..C1-14
C.1.2.5 Generation and quoting of Document Identification Number (DIN) .C1-14
C1.3 Sec 73 vs. Sec 74 vs. 74A – Issue of SCN and Time Limit…………………………….C1-15
C1.3.1 Sec 73 vs. Sec 74 – upto F.Y. 2023-24 …………………………………………C1-15
C1.3.2 Timeline for issuance of Notice and Adjudication Order ……………….C1-16
C1.4 Circumstances of issuing SCN under sec 73/74/74A …………………………………C1-19
C1.5 Circumstances of issue of SCN under sec 74 (up to F.Y.2023-24) or invoking
sec 74A(5)/74A (9)………………………………………………………………………………C1-21
C1.5.1 Meaning of ‘fraud’ ………………………………………………………………….C1-22
C1.5.2 Meaning of ‘Willful misstatement’ …………………………………………….C1-23
C1.5.3 Meaning of ‘Suppression’…………………………………………………………C1-24
C1.5.4 ‘To avoid tax’ or ‘to evade tax’………………………………………………….C1-25
C1.5.5 Case Laws …………………………………………………………………………….C1-25
C1.5.6 What would happen if invoking of Sec 74 (up to FY 2023-24) is not
maintainable ………………………………………………………………………….C1-29
C1.6 Who can issue SCN ……………………………………………………………………………..C1-30
C1.7 SCN under sec 73/74/74A for recovery of Interest or Penalty……………………..C1-34
C1.8 Issue of statement under sec 73(3)/74(3)/74A(3)……………………………………….C1-35
C1.9 Pre-consultation or Pre-SCN………………………………………………………………….C1-36
C1.10 Writ petitions challenging SCN or pre-SCN ……………………………………………..C1-38
C1.11 Other issues regarding SCN under sec 73/74/74A …………………………………….C1-39
C1.11.1 Manner of service of SCN – Uploading on web portal…………………..C1-39
C1.11.2 Issue of another SCN for the same tax period………………………………C1-41
C1.11.3 SCN for multiple Years……………………………………………………………C1-41
C1.11.4 SCN based upon audit report……………………………………………………C1-42
C1.11.5 Issue of SCN when audit proceedings are pending – allowed ………….C1-43
C1.11.6 Issue of SCN for recovery of self-assessed tax………………………………C1-43
C1.11.7 Issue of SCN without scrutiny of returns under sec 61 …………………..C1-45
C1.12 Continuation and validation of certain recovery proceedings……………………….C1-45
C1.13 Sequence of procedure till the issuance of SCN …………………………………………C1-46
Chapter C2 SCN under sec 73/74/74A – Voluntary payment………………………… C2-1
C2.1 Legislative provisions……………………………………………………………………………..C2-1
C2.1.1 Sec 73 of the GST Act……………………………………………………………….C2-1
C2.1.2 Sec 74 of the GST Act……………………………………………………………….C2-2
C2.1.3 Sec 74A of the GST Act…………………………………………………………….C2-4
C2.1.4 Rule 142 of the GST Rules…………………………………………………………C2-6
C2.1.5 Related GST Forms………………………………………………………………….C2-8
C2.2 Relief/Immunity on Voluntary payment ……………………………………………………C2-8
C2.3 Steps of voluntary payment and immunity ……………………………………………….C2-11
C2.3.1 Tax etc. paid before issue of SCN – Steps…………………………………….C2-11
C2.3.2 Tax etc. paid within 30 days (60 days in case of sec 74A) of
issue of SCN – Steps………………………………………………………………..C2-12
C2.3.3 Tax etc. paid within 30 days (60 days in case of sec 74A) of
communication of Order – Steps………………………………………………..C2-14
C2.3.4 Self-assessed tax, etc. ………………………………………………………………C2-15
C2.4 Retraction of admission under sec 73(5) or 74(5) ……………………………………….C2-15
C2.5 Rectification of Form DRC-3…………………………………………………………………C2-16
Chapter C3 SCN under sec 73/74/74A – Defense and Replies ………………………. C3-1
C3.1 Legislative provisions……………………………………………………………………………..C3-1
C3.1.1 Sec 73 of the GST Act……………………………………………………………….C3-1
C3.1.2 Sec 74 of the GST Act……………………………………………………………….C3-2
C3.1.3 Sec 74A of the GST Act…………………………………………………………….C3-2
C3.1.4 Sec 75 of the GST Act……………………………………………………………….C3-3
C3.1.5 Rule 142 of the GST Rules…………………………………………………………C3-3
C3.1.6 Related GST Forms………………………………………………………………….C3-3
C3.2 Defense – Validity of SCN issued under sec 73/74/74A ……………………………….C3-4
C3.2.1 Pre – SCN notice should be issued before issuance of SCN ………………C3-4
C3.2.1A Signatures on the SCN………………………………………………………………C3-5
C3.2.1B Generation and quoting of Document Identification Number (DIN) …C3-6
C3.2.2 SCN should be in proper format………………………………………………….C3-7
C3.2.3 SCN should not be vague and incomplete …………………………………….C3-8
C3.2.4 SCN should be issued within the specified time limit………………………C3-9
C3.2.4A Manner of service of DRC-01/07 – Uploading on web portal…………C3-10
C3.2.5 Justifiable reasons to invoke sec 74 – Extended period
(Up to FY 2023-24) or invoking sec 74A(5)/74A(9) ……………………..C3-11
C3.2.6 SCN should specify the grounds, reasons and amount in default …….C3-12
C3.2.6A SCN in the name of dead person/non-existing entities ………………….C3-13
C3.2.7 Reasonable and sufficient opportunity to furnish submissions…………C3-13
C3.2.7A SCN based upon Other Authority’s Report …………………………………C3-15
C3.2.7B SCN with pre-determined notion – Should not give conclusion……….C3-15
C3.2.8 SCN should be issued by the competent officer, who should not
lack jurisdiction ……………………………………………………………………..C3-17
C3.2.9 Reopening of assessment………………………………………………………….C3-17
C3.2.10 Whether Rule 142(1)(a) is ultra-virus………………………………………….C3-18
C3.2.11 Issue of SCN when other proceedings are pending – No defense …….C3-19
C3.2.12 Writ Petition against the SCN…………………………………………………..C3-19
C3.3 Handing of the SCN – To Summarize……………………………………………………..C3-19
C3.4 Replies/Representation to the SCN ………………………………………………………..C3-21
C3.5 Mismatch of ITC from F.Y. 2017-18 to 31.12.2021 due to incorrect
filing of Form GSTR-1……………………………………………………………………….. C3-23
C3.6 Receipts from suppliers whose registration has been cancelled subsequently,
retrospectively……………………………………………………………………………………..C3-24
C3.7 Alleged bogus purchases ……………………………………………………………………….C3-26
Appendix-1 ………………………………………………………………………………………………………C3-29
Appendix-2 ………………………………………………………………………………………………………C3-33
Chapter C4 SCN under sec 73/74/74A – Adjudication ……………………………….. C4-1
C4.1 Legislative provisions……………………………………………………………………………..C4-1
C4.1.1 Sec 73 of the GST Act……………………………………………………………….C4-1
C4.1.2 Sec 74 of the GST Act……………………………………………………………….C4-2
C4.1.3 Sec 74A of the GST Act…………………………………………………………….C4-2
C4.1.4 Sec 75 of the GST Act……………………………………………………………….C4-3
C4.1.5 Rule 142 of the GST Rules…………………………………………………………C4-4
C4.1.6 Related GST Forms………………………………………………………………….C4-5
C4.2 Principles of Adjudication……………………………………………………………………….C4-5
C4.2.1 Principles specified in Sec 75 of the GST Act ………………………………..C4-5
C4.2.2 General Principles ……………………………………………………………………C4-6
C4.3 Who can adjudicate ……………………………………………………………………………..C4-11
C4.4 Adjournments……………………………………………………………………………………..C4-16
C4.5 Personal hearing ………………………………………………………………………………….C4-16
C4.6 Obligations of the adjudicating authority………………………………………………….C4-17
C4.6.1 Pass a speaking order………………………………………………………………C4-17
C4.6.2 Adjudication shall not be beyond the SCN………………………………….C4-20
C4.6.3 Other points…………………………………………………………………………..C4-21
C4.7 Generation and quoting of Document Identification Number (DIN) …………….C4-22
C4.8 Timeline for issuance of Notice and Order ……………………………………………….C4-23
C4.8.1 Time limit specified under sec 73(10),74(10) and 74A(2) ……………….C4-23
C4.8.2 Orders passed after the time limits/limitation period …………………….C4-23
C4.8.3 Matters pending before higher forums/courts………………………………C4-24
C4.9 Deemed conclusion ……………………………………………………………………………..C4-25
C4.10 Modification of demand………………………………………………………………………..C4-25
C4.11 Adjudication of interest and penalty………………………………………………………..C4-26
C4.11.1 Adjudication of interest……………………………………………………………C4-26
C4.11.2 Adjudication of penalty……………………………………………………………C4-26
C4.11.3 Whether penalty is always dependent upon tax ……………………………C4-27
C4.11.4 Imposition of penalty – Section 73/74/74A vs. Section 122 ……………C4-28
C4.11.5 Imposition of penalty for delay in filing of return in GSTR-3B ……….C4-29
C4.11.6 Early payment of tax etc. after adjudication under sec 74 ………………C4-29
C4.12 Adjudication proceedings not to be invalid……………………………………………….C4-30
C4.13 Rectification of errors apparent on the face of record………………………………….C4-30
C4.14 Grounds against the Adjudication Order in Appeal – To Summarize ……………C4-33
C4.15 Procedure of Adjudication – GST Rules…………………………………………………..C4-34
C4.16 Payment of tax etc. in instalments – Post adjudication ………………………………..C4-35
C4.17 Initiation of Recovery Proceedings – Post adjudication ……………………………….C4-36
C4.18 Recovery after Adjudication…………………………………………………………………..C4-37
C4.19 Appeal against the Adjudication Order ……………………………………………………C4-38
Appendix-1 ……………………………………………………………………………………………………..C4-39
Appendix-2 ………………………………………………………………………………………………………C4-43
Chapter C5 Tax collected but not paid………………………………………………….. C5-1
C5.1 Legislative provisions……………………………………………………………………………..C5-1
C5.1.1 Sec 76 of the GST Act……………………………………………………………….C5-1
C5.1.2 Rule 142 of the GST Rules…………………………………………………………C5-2
C5.1.3 Related GST Forms………………………………………………………………….C5-2
C5.2 Circumstances ………………………………………………………………………………………C5-3
C5.3 Process/Steps of SCN and its Adjudication………………………………………………..C5-4
C5.3.1 Other important points………………………………………………………………C5-5
C5.4 Procedural and Practical Aspects ……………………………………………………………..C5-6
Chapter C6 SCN under sec 73/74/74A – Practical Aspects ………………………….. C6-1
C6.1 Legislative provisions……………………………………………………………………………..C6-1
C6.1.1 Rule 142 of the GST Rules…………………………………………………………C6-1
C6.1.2 Related GST Forms………………………………………………………………….C6-4
C6.2 Procedure/Steps of SCN and its Adjudication…………………………………………….C6-4
C6.3 FAQ by GSTN ……………………………………………………………………………………..C6-6
C6.4 Action points for the Noticee …………………………………………………………………C6-11
Chapter C7 SCN under sec 73/74/74A related provisions……………………………. C7-1
C7.1 Show cause notice under sec 73 to 76 related sections under the GST Act ……….C7-3
73. Determination of tax, pertaining to the period upto Financial Year
2023-24, not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised for any reason other than fraud or
any wilful-misstatement or suppression of facts. …………………………….C7-3
74. Determination of tax, pertaining to the period upto Financial Year
2023-24, not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised by reason of fraud or any wilfulmisstatement or suppression of facts…………………………………………….C7-5
74A. Determination of tax not paid or short paid or erroneously refunded or
input tax credit wrongly availed or utilised for any reason pertaining to
Financial Year 2024-25 onwards…………………………………………………C7-7
75. General provisions relating to determination of tax. ……………………….C7-9
76. Tax collected but not paid to Government. …………………………………C7-12
C7.2 Show cause notice related rules under the GST Rules…………………………………C7-14
142. Notice and order for demand of amounts payable under the Act. ……C7-14
C7.3 Show cause notice related Forms ……………………………………………………………C7-18
C7.4 Show cause notice related Circulars and Instructions………………………………….C7-33
Chapter C8 Amnesty Scheme under the GST ………………………………………….. C8-1
C8.1 Section 128A of the GST Act – Amnesty scheme ………………………………………..C8-1
C8.2 Rule 164 of the GST Rules – Amnesty scheme……………………………………………C8-3
C8.3 Amnesty Scheme Forms …………………………………………………………………………C8-8
C8.4 Circular and Instruction ………………………………………………………………………….C8-8
C8.4.1 Circular No. 238/32/2024-GST dated 15.10.2024………………………….C8-8
C8.4.2 Instruction No. 02/2025-GST; dated 07.02.2025………………………….C8-22
C8.4.3 Press Release ID: 2113661; dated 21.03.2025 ………………………………C8-22
C8.4.4 GSTN Advisory; dated 22.03.2025 ……………………………………………C8-23
C8.4.5 Circular No. 248/05/2025; dated 27.03.2025 ………………………………C8-24
C8.5 Sec 128A – An Analysis………………………………………………………………………..C8-25

PART – D

SUMMONS AND OTHER NOTICES

Chapter D1 Summons under the GST……………………………………………………D1-1
D1.1 Legislative provisions……………………………………………………………………………. D1-1
D1.1.1 Sec 70 of the GST Act……………………………………………………………… D1-1
D1.1.2 Format of Summon ………………………………………………………………… D1-2
D1.2 Power to summon and circumstances………………………………………………………. D1-3
D1.3 Who can Summon and to whom ……………………………………………………………. D1-6
D1.3.1 Who can summon ………………………………………………………………….. D1-6
D1.3.2 Who can be summoned …………………………………………………………… D1-8
D1.4 Deemed to be judicial proceedings………………………………………………………….. D1-9
D1.5 Manner of issuing summon – General Guidelines ……………………………………. D1-10
D1.6 Precautions to be observed while issuing summons ………………………………….. D1-11
D1.7 Consequences of non-appearance to summons………………………………………… D1-11
D1.8 Statement during summon proceedings………………………………………………….. D1-12
D1.9 Other points relating to summon…………………………………………………………… D1-14
D1.9.1 Even the authorised representative may attand…………………………… D1-14
D1.9.2 Issuance of summons repeatedly ……………………………………………… D1-14
D1.9.3 Parallel enquiry proceedings under sec 70 by State and Centre ……… D1-15
D1.9.4 Right of cross examination……………………………………………………… D1-15
D1.9.5 Apprehension of arrest during summon…………………………………….. D1-16
D1.9.6 Might have to travel from one State to another…………………………… D1-16
D1.9.7 Installation of CCTV …………………………………………………………….. D1-17
D1.9.8 No interference by the High Court …………………………………………… D1-17
D1.9.9 Officers to assist proper officers……………………………………………….. D1-18
D1.9.10 Adjudication proceedings and summons not to be invalid …………….. D1-18
D1.10 Guidelines on issuance of summons under section 70 of the CGST Act……….. D1-19
Chapter D2 Other Notices under the GST ………………………………………………D2-1
D2.1 Notices, in general ……………………………………………………………………………….. D2-2
D2.2 Notice for seeking additional information for application of registration
[REG-03]……………………………………………………………………………………………. D2-2
D2.2.1 Sec 25 of the GST Act……………………………………………………………… D2-2
D2.2.2 Rule 9 of the GST Rules ………………………………………………………….. D2-3
D2.2.3 Related GST Forms………………………………………………………………… D2-4
D2.2.4 Circumstances ……………………………………………………………………….. D2-5
D2.2.5 Process/Steps of Notice and its Order………………………………………… D2-5
D2.2.6 Handling of Notice – Precautions ………………………………………………. D2-6
D2.3 SCN for Cancellation of Registration [REG-17] ………………………………………… D2-7
D2.3.1 Sec 29 of the GST Act……………………………………………………………… D2-7
D2.3.2 Rule 21A of the GST Rules………………………………………………………. D2-8
D2.3.3 Rule 22 of the GST Rules…………………………………………………………. D2-9
D2.3.4 Related GST Forms………………………………………………………………. D2-10
D2.3.5 Circumstances – Cancellation of registration ……………………………… D2-10
D2.3.6 Process/Steps of Notice and its Order………………………………………. D2-11
D2.3.7 Handling of Notice ……………………………………………………………….. D2-12
D2.3.8 Case laws in the defense of Noticee………………………………………….. D2-12
D2.4 Notice for rejection of application for revocation of cancellation of
registration [REG-23]………………………………………………………………………….. D2-16
D2.4.1 Sec 30 of the GST Act……………………………………………………………. D2-16
D2.4.2 Rule 23 of the GST Rules……………………………………………………….. D2-17
D2.4.3 Related GST Forms………………………………………………………………. D2-18
D2.4.4 Circumstances ……………………………………………………………………… D2-19
D2.4.5 Process/Steps of Application, Notice and its Order…………………….. D2-20
D2.4.6 Handling of Notice ……………………………………………………………….. D2-21
D2.5 Denial of option to pay tax under composition [CMP-05] …………………………. D2-21
D2.5.1 Sec 10 of the GST Act……………………………………………………………. D2-21
D2.5.2 Rule 6 of the GST Rules ………………………………………………………… D2-21
D2.5.3 Related GST Forms………………………………………………………………. D2-22
D2.5.4 Circumstances – Non-Compliance of the Composition Scheme …….. D2-22
D2.5.5 Process/Steps of Notice and its Order………………………………………. D2-23
D2.5.6 Handling of Notice ……………………………………………………………….. D2-24
D2.6 Notice to return defaulter for not filing return [GSTR-3A]…………………………. D2-24
D2.6.1 Sec 46 of the GST Act – Notice to return defaulters …………………….. D2-24
D2.6.2 Rule 68 of the GST Rules – Notice to non-filers of returns ……………. D2-24
D2.6.3 Related GST Forms………………………………………………………………. D2-24
D2.6.4 Circumstances ……………………………………………………………………… D2-24
D2.6.5 Actions against the non-filer of returns……………………………………… D2-25
D2.7 Notice for rejection of application for refund [RFD-08] …………………………….. D2-26
D2.7.1 Sec 54 of the GST Act……………………………………………………………. D2-26
D2.7.2 Rule 92 of the GST Rules……………………………………………………….. D2-26
D2.7.3 Related GST Forms………………………………………………………………. D2-26
D2.7.4 Circumstances ……………………………………………………………………… D2-26
D2.7.5 Process/Steps of Notice and its Order………………………………………. D2-28
D2.7.6 Handling of Notice and defense available………………………………….. D2-29
D2.8 Notice to a third person under section 79(1)(c) [DRC–13] …………………………. D2-31
D2.8.1 Sec 79 of the GST Act……………………………………………………………. D2-31
D2.8.2 Rule 145 of the GST Rules……………………………………………………… D2-33
D2.8.3 Related GST Forms………………………………………………………………. D2-33
D2.8.4 Circumstances ……………………………………………………………………… D2-33
D2.8.5 Process/Steps of Notice and Certificate…………………………………….. D2-34
D2.9 Provisional attachment of property under sec 83 [DRC–22]……………………….. D2-35
D2.9.1 Sec 83 of the GST Act……………………………………………………………. D2-35
D2.9.2 Rule 159 of the GST Rules……………………………………………………… D2-35
D2.9.3 Related GST Forms………………………………………………………………. D2-36
D2.9.4 Circumstances ……………………………………………………………………… D2-36
D2.9.5 Process/Steps of Order and Objection………………………………………. D2-38
D2.9.6 Defense available ………………………………………………………………….. D2-39
D2.10 Notice for detention/confiscation of goods in movement ………………………….. D2-43
D2.10.1 Rule 138B of the GST Rules …………………………………………………… D2-43
D2.10.2 Rule 138C of the GST Rules…………………………………………………… D2-43
D2.10.3 Related GST Forms………………………………………………………………. D2-44
D2.10.4 Circumstances and procedure …………………………………………………. D2-44
D2.10.5 Defense available ………………………………………………………………….. D2-46
D2.11 Manner of dealing with difference in liability reported in GSTR-1/1A and that
reported in GSTR-3B………………………………………………………………………….. D2-49
D2.11.1 Rule 88C of the GST Rules…………………………………………………….. D2-49
D2.11.2 Rule 59(6)(d) of the GST Rules……………………………………………….. D2-50
D2.11.3 Related GST Forms………………………………………………………………. D2-51
D2.11.4 Analysis………………………………………………………………………………. D2-51
D2.11.5 Process/Steps of Order and Objection………………………………………. D2-52
D2.12 Manner of dealing with difference in liability reported in GSTR-2B and that
reported in GSTR-3B………………………………………………………………………….. D2-52
D2.12.1 Rule 88D of the GST Rules…………………………………………………….. D2-52
D2.12.2 Related GST Forms………………………………………………………………. D2-53
D2.12.3 Process/Steps of Order and Objection………………………………………. D2-54
D2.13 Intimation of certain amounts liable to be recovered under
section 79 of the Act …………………………………………………………………………… D2-54
D2.13.1 Rule 142B of the GST Rules …………………………………………………… D2-54
D2.13.2 Related GST Forms………………………………………………………………. D2-55
D2.14 Service of Notice, Order, Decision, etc. (Sec 169)……………………………………….. D2-55
D2.14.1 Manner of service …………………………………………………………………. D2-55
D2.14.2 To whom service may be made ……………………………………………….. D2-56
D2.14.3 Deeming provisions in relation to service ………………………………….. D2-57
Appendix-1……………………………………………………………………………………….. D2-58
Appendix-2……………………………………………………………………………………….. D2-59
Appendix-3……………………………………………………………………………………….. D2-60
Appendix-4……………………………………………………………………………………….. D2-61
Appendix-5 ……………………………………………………………………………………….. D2-61
Appendix-6……………………………………………………………………………………….. D2-63
Appendix-7……………………………………………………………………………………….. D2-64
Appendix-8……………………………………………………………………………………….. D2-64
Appendix-9……………………………………………………………………………………….. D2-68
Appendix-10 ……………………………………………………………………………………… D2-69
Appendix-11 ……………………………………………………………………………………… D2-70
Appendix-12 ……………………………………………………………………………………… D2-72
Appendix-13 ……………………………………………………………………………………… D2-73
Appendix-14 ……………………………………………………………………………………… D2-74
Appendix-15 ……………………………………………………………………………………… D2-75
Appendix-16 ……………………………………………………………………………………… D2-75
Appendix-17 ……………………………………………………………………………………… D2-77
Appendix-18 ……………………………………………………………………………………… D2-78
Appendix-19 ……………………………………………………………………………………… D2-80
Appendix-20 ……………………………………………………………………………………… D2-83
Appendix-21 ……………………………………………………………………………………… D2-85
Appendix-22 ……………………………………………………………………………………… D2-87

PART – E

APPEALS

Chapter E1 Appeals under the GST …………………………………………………….. E1-1
E1.1 Legislative provisions……………………………………………………………………………..E1-2
E1.1.1 Sec 107 of the GST Act……………………………………………………………..E1-2
E1.1.2 Sec 111 of the GST Act……………………………………………………………..E1-4
E1.1.3 Sec 112 of the GST Act……………………………………………………………..E1-5
E1.1.4 Sec 113 of the GST Act……………………………………………………………..E1-7
E1.1.5 Rule 108 of the GST Rules…………………………………………………………E1-8
E1.1.6 Rule 109 of the GST Rules……………………………………………………….E1-10
E1.1.7 Rule 109A of the GST Rules…………………………………………………….E1-11
E1.1.8 Rule 109C of the GST Rules…………………………………………………….E1-12
E1.1.9 Rule 110 of the GST Rules……………………………………………………….E1-12
E1.1.10 Rule 111 of the GST Rules……………………………………………………….E1-14
E1.1.11 Rule 112 of the GST Rules……………………………………………………….E1-15
E1.1.12 Rule 113 of the GST Rules……………………………………………………….E1-16
E1.1.13 Rule 113A of the GST Rules…………………………………………………….E1-16
E1.1.14 Related GST Forms………………………………………………………………..E1-17
E1.2 Appellate levels in the GST Act ……………………………………………………………..E1-17
E1.2.1 Appellate levels in the GST Act ………………………………………………..E1-17
E1.2.2 Who may file appeal……………………………………………………………….E1-18
E1.2.3 Appellate Authority [Rule 109A] ………………………………………………E1-18
E1.3 Time limit of filing and disposal of appeal – A Glance………………………………..E1-19
E1.4 Appeal/Application by the CGST/SGST Department before the Appellate
Authority/Tribunal ………………………………………………………………………………E1-22
E1.5 Time limit of filing of appeal ………………………………………………………………….E1-24
E1.5.1 Calculation of time limit ………………………………………………………….E1-24
E1.5.1A Calculation of time limit – After rectification of original order………..E1-25
E1.5.2 Date of Service of the order………………………………………………………E1-25
E1.5.3 Condonation of delay ……………………………………………………………..E1-26
E1.6 Pre-deposit – Condition for filing of appeal ……………………………………………….E1-32
E1.7 Manner of filing of appeal ……………………………………………………………………..E1-37
E1.7.1 Electronically filing…………………………………………………………………E1-37
E1.7.2 Filing of appeal in off-line mode………………………………………………..E1-37
E1.7.3 Manner of submitting of copy of impugned order / decision before
the Appellate Authority …………………………………………………………..E1-38
E1.7.4 Filing fee ………………………………………………………………………………E1-39
E1.8 No right of appeal or non-appealable decisions & orders …………………………….E1-39
E1.8.1 Appeal can’t be filed by the Department in certain cases………………..E1-39
E1.8.2 Non-appealable decisions and orders………………………………………….E1-40
E1.9 Withdrawal of appeal……………………………………………………………………………E1-41
E1.10 Disposal of appeal by the Appellate Authority…………………………………………..E1-41
E1.11 Filing of appeal against rejection of revised TRAN-1………………………………….E1-44
E1.12 Constitution of Appellate Tribunal and Benches thereof……………………………..E1-45
E1.13 Procedure before the Appellate Tribunal ………………………………………………….E1-46
E1.14 Manner of filing of Appeal before the Appellate Tribunal ……………………………E1-47
E1.15 Manner of filing of Application before the Appellate Tribunal……………………..E1-50
E1.16 Withdrawal of Appeal before the Appellate Tribunal …………………………………E1-51
E1.17 Disposal of appeal by the Appellate Tribunal ……………………………………………E1-51
E1.18 Production of additional evidence before the Appellate Authority or the
Appellate Tribunal ……………………………………………………………………………….E1-52
Appendix – 1 ……………………………………………………………………………………………………E1-54
Chapter E2 Sample Appellate Documents ……………………………………………… E2-1
E2.1 Sample Index of Appeal………………………………………………………………………….E2-1
E2.2 Sample Calendar of Events ……………………………………………………………………..E2-2
E2.3 Sample Statement of Facts………………………………………………………………………E2-3
E2.4 Sample Grounds of Appeal ……………………………………………………………………..E2-7
E2.5 Sample Prayer……………………………………………………………………………………..E2-13
Chapter E3 Practical Aspects – Appeals ………………………………………………… E3-1
E3 How to file appeal before the First Appellate Authority – Practical Aspects……..E3-1
E3.1 Filing an Appeal against Demand Order………………………………………E3-1
E3.2 Filing an Appeal against Registration Order………………………………….E3-6