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All QuestionsCategory: GST ConsultancyHow to reply notices issued u/s 16(4)
Profile photo of CA Naveen JainCA Naveen Jain asked 2 years ago

How to reply notices issued u/s 16(4)

How to reply notices issued u/s 16(4)

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2 Answers
Profile photo of Consultease AdministratorConsultease Administrator answered 2 years ago
  • First of all, check whether it is a proper notice with DIN.
  • Now check if you have actually made a default.  If yes, it is better to pay if you cant handle litigation.
Profile photo of Neha AjmeraNeha Ajmera answered 2 years ago

If there is violation of provisions of scetion 16(4) , department is legally entitled to issue notices u/s 16(4). You can use following points while reverting to notices : 

  1. Assessee has already paid late fee while filing GSTR3B as is system generated.
  2. GSTR3B Return pattern is in such a way that one cannot upload GSTR3B Return unless liability is completely discharged through ITC or Cash payment for amount in excess of ITC. So if there was liability in excess of ITC claimed in return , Client has to make payment through cash . Delay can be due to non availability of cash for payment.
  3. Department is already claiming Interest at rate of 18%p.a for delay in payment of Tax. Now non admissibility/reversal of ITC claimed in return can result in heavy duties on assessee which are not explainable.