Reply to Notices Under GST

Basic Principles while Replying to any Notice

• Verify, whether it is in the prescribed Form.
• Find out whether the alleged default is committed by the recipient and the notice is self-explanatory.
• If it is not so, write to issuing authority, to clarify.
• Do not assume anything and do not reply hurriedly, in a half-hearted manner.
• Facts of the case are very important and should be written down first, before writing a reply.
• Do not simply cite the case law, but write the applicable facts and applicable ratio of the case cited.
• Prayer i.e. what lastly you expect the authority to do, shall be mentioned, instead of merely mentioning that the Notice is bad in law.

Notices in Form GST REG-03 for Seeking Additional Information/Clarification/Documents relating to Application for Registration/Amendment/Cancellation (Rule 9)

• The reply shall be furnished within 7 days in FORM-GST-REG-04.
• If the applicant needs some more time, (though there is no provision), he should request by email. (Natural Justice)
• Rule 9(5) provides that, where registering authority failed to grant RC within 3 or 7 working days, the application shall be deemed to have been approved.
• In spite of the aforesaid Rule, many times, RC was not made effective from the date on which turnover exceeded the limit but from the prospective date. [Rule 10(2)].
• In such a case, an application for rectification shall be made u/s 161. There is no Rule to prescribe the Rectification Application Form. However, FORM GST-DRC-08 is prescribed by Rule 142(7) for the Rectification order. 
• Case Study: Application for cancellation of RC was filed on 25-01-20.
• Rule 22(3) provides that RC shall be cancelled within 30 days.
• Rule 9 provides for notice in FORM-GST-REG-03 only for asking for additional information relating to the grant of RC and not relating to an application for cancellation.
•  Even it is presumed that FORM-GST-REG-03 is also prescribed for cancellation, as per Rule 9(2) the officer shall issue the notice within 3 working days from the date of submission of the application.
• Notice in FORM-GST-REG-03 is not issued within 3 days and issued after two months stating that “Department has examined your application and is not satisfied with it for the reason. Therefore pay interest & penalty and submit challan to this office. If no response is received by the stipulated date, your application is liable for rejection.”
• Whether it can be called as void?

Notice for Cancellation of Registration for non-filing of Returns

Submissions: 

• We have filed the Returns in GSTR -3B for July 17 and August 17 and GSTR -1 for July 17. We admit that all other returns have not been filed.
• The reason for the said non-filing is that our customers have not paid huge amounts towards the outward supply made by us. As a result, we are facing financial stringency which has resulted in non-payment of GST, non-payment of salary to our staff and to our suppliers.
• Under the circumstance, we request to give the time of one month within which we will make the fullest attempt to recover the outstanding from our customers to enable us to pay the taxes and file the returns.
• In spite of the above request, if the registration is cancelled, the appellate authority can restore the same, after filing of all such returns.

Notice FORM GST RFD-08 for rejection of refund application

• This notice shall mention the reason for which rejection is proposed.
• The reply shall be in FORM-GST-RFD-09
•  Rejection is proposed on account of time barring.
• A time limit of 2 years is applicable only for claiming a refund of tax, interest, and other amounts paid in excess. [Section 54(1)]
• A time limit of 6 months is applicable only for claiming refund by foreign consulates etc. of tax paid on inward supplies. [Section 54(2)

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