Background of the Case

The petitioner challenged a GST assessment order issued in Form GST DRC-07 for FY 2022-23 along with consequential recovery proceedings initiated through Form GST DRC-16. The dispute primarily related to levy of GST at the rate of 18% on works contract services executed for a State Government department. However, the petitioner questioned the very validity of the assessment order on the ground that the DRC-07 order dated 25.07.2023 did not bear the signature of the Proper Officer. The Revenue contended that the order had already been served by uploading it on the GST portal and that the writ petition had been filed with considerable delay. The matter was therefore placed before the Andhra Pradesh High Court to determine whether an unsigned assessment order could survive in law and whether the delay in approaching the Court would disentitle the petitioner from relief.

Arguments by the Appellant (Taxpayer)

The petitioner contended that the impugned DRC-07 order was void and unenforceable as it lacked the signature of the Proper Officer. Reliance was placed on earlier decisions of the Andhra Pradesh High Court, including A.V. Bhanoji Row, SRK Enterprises and SRS Traders, wherein the Court had consistently held that an assessment order without a valid signature is legally defective and cannot be sustained. The petitioner further submitted that the assessment order had not been served through conventional means and was merely uploaded on the GST portal. It was argued that the petitioner became aware of the proceedings only subsequently and therefore the delay in approaching the Court ought not to defeat a challenge against an order suffering from a patent legal defect.

Respondent’s Response (Revenue Department)

The Revenue opposed the writ petition on the ground of delay and submitted that the petitioner had failed to explain the prolonged period between issuance of the assessment order and filing of the writ petition. The department further argued that Section 169(1)(d) of the CGST Act specifically recognizes uploading of notices and orders on the GST portal as a valid mode of service upon a registered person. Accordingly, the department contended that the petitioner could not avoid the consequences of the assessment merely by claiming lack of knowledge of the order. The Revenue therefore sought dismissal of the writ petition while defending the validity of the assessment proceedings.

Court Findings and Decision

The Andhra Pradesh High Court held that the issue was squarely covered by its earlier judgments which had categorically ruled that the absence of the Proper Officer’s signature renders an assessment order invalid and that such a defect cannot be cured under Sections 160 or 169 of the GST Act. While the Court acknowledged the department’s objection regarding delay and recognized that uploading of orders on the GST portal is generally treated as a valid mode of service, it also took note of the practical difficulties faced by taxpayers under the GST regime and the recurring disputes relating to access and awareness of portal-based communications. Balancing the interests of both parties, the Court set aside the unsigned DRC-07 assessment order and remanded the matter to the Proper Officer for fresh adjudication after providing an opportunity of hearing to the petitioner. However, the relief was made subject to the condition that the petitioner deposits 20% of the disputed tax within six weeks. The Court further directed that the period during which the writ petition remained pending shall be excluded for limitation purposes and left all issues open for reconsideration by the Proper Officer.

To download official order, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post Andhra Pradesh High Court Sets Aside Unsigned GST Assessment Order appeared first on Tax Unplug.

Introduction

Filing GST returns is a critical responsibility for every registered business in India. However, mistakes—whether intentional or unintentional—are common. A wrong entry, mismatched invoice, or delayed filing can quickly invite a GST notice from the tax authorities.

If you’ve received a notice due to errors in your GST return filing, don’t panic. This blog explains everything you need to know about GST Notice Management—from understanding the types of notices to responding effectively and preventing future issues.

What is GST Notice Management?

GST Notice Management refers to the systematic handling of notices issued by GST authorities under different provisions of the CGST Act and Rules. It includes:

• Reviewing the notice thoroughly
• Understanding the legal section under which it is issued
• Identifying the root cause of the error
• Preparing an appropriate reply
• Making accurate amendments in GST returns
• Ensuring future compliance

The goal is to avoid penalties, litigation, and business disruptions.

Common Errors While Filing GST Returns

Notices are generally triggered due to issues such as:

• Incorrect GSTIN entry
• Mismatch between GSTR-1 and GSTR-3B
• Variance between supplier invoices and GSTR-2B
• Incorrect ITC claimed under Section 16
• Wrong tax rate or HSN/SAC classification
• Late filing or non-filing of GST returns
• Errors in invoice uploading

Even minor mistakes may lead to scrutiny, so strict GST compliance is essential.

Types of GST Notices Issued by Authorities

1. Show Cause Notice (SCN)

Issued when the department suspects short payment, non-payment, or wrongful ITC claims.

Relevant provisions:

• Section 73 – Non-fraud cases
• Section 74 – Fraud/suppression cases
• Forms used: DRC-01, DRC-02

2. Notice for Mismatch in Returns

Issued when differences are detected between:

• GSTR-1 and GSTR-3B
• ITC claimed vs. ITC available in GSTR-2B
• Forms: ASMT-10, DRC-01A

3. Notice for Non-Filing or Late Filing

Issued when the taxpayer fails to file returns on time or misses multiple periods.

• Provision: Section 46
• Form: GSTR-3A

 Steps to Handle a GST Notice Effectively

1. Read the Notice Carefully: Identify the section, deadline, and required documents.
2. Verify Your Records: Reconcile invoices, returns, books of accounts, and GSTR-2B.
3. Prepare a Professional Reply: Draft a clear and factual response addressing each point raised.
4. Correct the Mistake: Amend the error in subsequent GSTR-1/GSTR-3B filings (GST returns cannot be revised; only amendments are allowed).
5. Submit the Reply on Time: Late responses may lead to penalties, assessments, or legal action.
6. Seek Expert Assistance if Needed: Professionals can ensure accurate responses and representation.

Best Practices for GST Notice Management

• Maintain accurate and complete records
• Reconcile books with GSTR-1, GSTR-3B, and GSTR-2B regularly
• File all returns before due dates
• Check the GST portal and registered email frequently
• Train internal staff on GST processes
• Conduct periodic GST compliance audits

How Professional Support Can Help

Handling GST notices without expertise may lead to unnecessary liabilities. A professional GST consultant can assist with:

• Accurate drafting of replies
• Proper legal interpretation
• Corrective actions to avoid repeat mistakes
• Representation before GST authorities
• Peace of mind and full compliance

Conclusion (GST Notice Management Guide)

Errors in GST returns are natural, but effective notice management ensures they do not become costly. Timely responses, correct filing practices, and professional support are key to staying compliant and penalty-free.

👉 Need assistance with GST Notice Management? Contact TaxUnplug today. Our GST experts will handle your notices professionally and ensure complete compliance.

The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.

The post Made an Error While Filing GST Returns? appeared first on Tax Unplug.

M/s Jyoti Tar Products Private Limited vs. Revenue [ MAT / 2100 / 2024 ]

Background of the Case

The appellant, M/S Jyoti Tar Products Private Limited received an adjudication order dated 10^th July, 2024, passed under Section 74(9) of the WBGST/CGST Act. The core issue stemmed from a pre-show cause notice issued on 16th August, 2023, under Section 73(5) of the Act. The notice alleged that the appellant had wrongly claimed ITC against supplies received from certain non-existent suppliers whose GST registrations had been cancelled. This order was subsequently challenged by the appellant in a writ petition, which was dismissed by an order dated 11th November, 2024, leading to the current intra-court appeal.

Arguments by the Appellant

The appellant explained that all purchases were legitimately accounted for in their books. They asserted that ITC was claimed correctly as reflected in their GSTR-2A, and all payments for these purchases were duly made through banking channels, with supporting bank statements and ledger copies provided. Furthermore, the appellant furnished copies of all relevant tax invoices, e-way bills, and kata slips to establish the genuineness of the transactions and movement of goods. Crucially, they contended that these purchases were made at a time when the suppliers’ GST registrations were active and valid.

The appellant strongly relied on the conditions stipulated under Section 16(2) of the Act for ITC availment. They also emphasized that all necessary details were furnished in their periodical returns on the GST Portal. They vigorously argued that the retrospective cancellation of a supplier’s registration should not adversely impact a purchaser’s right to claim ITC, provided the purchaser can prove compliance with Section 16(2).

Respondent’s Response

The respondent, the Revenue, did not find the submissions satisfactory. Consequently, they proceeded with the issuance of a formal show cause notice and subsequently passed their adjudication order. In this order, a new finding was introduced, expressing doubt about the nature of business carried on by the suppliers, stating that their registration details did not align with the goods purportedly purchased by the appellant. The Respondent stated that retrospective cancellation of a supplier’s registration impacts the ITC claim by purchasing dealer’s.

Court Findings and Decision

The Calcutta High Court, in its findings, emphatically stated that the respondent had failed to address two fundamental issues that were central to the case. Firstly, the authority did not examine the legal implications of a retrospective cancellation of a supplier’s registration on the purchasing dealer’s ITC claim. Secondly, it did not properly evaluate whether the appellants had successfully proven the actual movement and receipt of goods through the substantial documentary evidence provided. Given these significant omissions, the High Court concluded that the matter required a fresh adjudication.

Consequently, the appeal filed was allowed and the order passed in the writ petition, as well as the initial adjudication order dated 10th July, 2024, passed under Section 74(9) of the Act, were set aside. The case has been remanded back for a fresh decision on merits, strictly in accordance with the law.

Calcutta High Court Quashes GST Order

To download official order, Click Here.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post Calcutta High Court Sets Aside GST Order: Revenue Failure to Examine Retrospective Cancellation & Goods Movement Evidence appeared first on Tax Unplug.

Getting your GST registration cancelled can be a nightmare for any business. Without a valid GST registration, you cannot legally conduct taxable sales, claim input tax credit, or file GST returns. If your GST registration got cancelled, you must know why it happened and how to fix it.

In this article, we’ll discuss the reasons for GST cancellation, its consequences, and the steps to restore it. Let’s dive in!

Common Reasons Why GST Registration Gets Cancelled

Your GST registration may be cancelled due to various reasons. Here are the most common ones:

1. Non-Filing of GST Returns

If you fail to file GST returns for six consecutive months (for normal taxpayers) or two consecutive quarters (for composition taxpayers), your GST registration is automatically cancelled.

Solution: Regularly file your GST returns to avoid cancellation.

2. Providing Incorrect Information

If you submitted incorrect details like a fake address, PAN, or business documents while registering, your GST registration can be cancelled by the authorities.

Solution: Ensure all details provided during GST registration are accurate and verifiable.

3. Business Discontinuation or Closure

If your business shuts down permanently or merges with another entity, you must cancel your GST registration voluntarily. If you don’t, the GST department may do it for you.

Solution: If you close your business, apply for voluntary cancellation to avoid penalties.

4. Violating GST Laws

If you violate GST laws such as issuing fake invoices, claiming wrongful input tax credit, or not maintaining proper records, your GST registration may be cancelled.

Solution: Always comply with GST laws and maintain accurate records.

5. Non-Compliance with E-Way Bill Rules

If you are involved in fraudulent e-way bill transactions, the GST department can cancel your registration.

Solution: Follow e-way bill rules properly and avoid fake transactions.

6. Not Conducting Business Activities

If your business is inactive for an extended period, the GST department may cancel your registration due to non-operation.

Solution: Regularly update your business activities and inform the GST department.

 What Happens After GST Registration is Cancelled?

• You cannot collect GST from customers.
• You lose the ability to claim input tax credit (ITC).
• Your business becomes non-compliant, which may lead to legal action.
• You may have to pay penalties and dues before applying for re-registration.

How to Restore Your Cancelled GST Registration?

If your GST registration is cancelled, you can apply for revocation within 30 days of cancellation. Here’s how:

Steps to Apply for GST Revocation:

1. Log in to the GST portal (www.gst.gov.in).
2. Go to ‘Services’ > ‘Registration’ > ‘Application for Revocation of Cancelled Registration’.
3. Fill in the required details and provide a valid reason for revocation.
4. Upload necessary documents like compliance records and explanation letters.
5. Submit the application and wait for approval.

Once your request is approved, your GST registration will be restored.

How to Avoid GST Registration Cancellation?

• File GST returns on time.
• Keep all business details updated.
• Follow GST compliance rules.
• Avoid fake invoicing and fraud.
• Ensure proper e-way bill transactions.

FAQs on GST Registration Cancellation

Q. Can I apply for a new GST registration after cancellation?

Yes, but you must clear all pending liabilities and meet compliance requirements.

Q. What is the penalty for a cancelled GST registration?

A penalty of ₹10,000 or 10% of the tax due (whichever is higher) may be imposed.

Q. How long does it take to restore a cancelled GST registration?

It usually takes 7-15 working days after applying for revocation.

Q. Can I voluntarily cancel my GST registration?

Yes, if your business is shutting down or you are no longer liable for GST.

Q. What happens if I continue business without GST registration?

You may face heavy penalties and legal action from the GST authorities.

Conclusion

If your GST registration got cancelled, it’s essential to understand why and take immediate action. Follow GST compliance rules, file returns on time, and maintain accurate business records to prevent cancellation in the future.

For further assistance, you may contact Taxunplug  by dropping your Name, Mobile and Email. Our team of experts will take care of all the sticky things and helps to take timely action, and ensure compliance to avoid legal complications.

The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.

The post Why Your GST Registration Got Cancelled by Department? appeared first on Tax Unplug.

MRL Industrial Cooperative Service Society Ltd vs. Revenue [W.P. 3993 of 2025]

Background of the Case

The petitioner, MRL Industrial Cooperative Service Society Ltd., challenged three separate orders passed by the Revenue, under the GST laws. The orders in question were passed under section 73 and section 161 of the TN/CGST Act 2017 which related to FY 2018-19.

Arguments by the Appellant

The petitioner contended that all notices and communications leading to the impugned orders were uploaded only on the GST portal under the “View of additional notices and orders” column. The petitioner was unaware of these notices and, consequently, could not file a reply or appear for a personal hearing. As a result, the orders were passed ex-parte, violating the principles of natural justice.

The petitioner, a cooperative society providing manpower supply services, argued that the ex-parte orders caused severe hardship, as its bank account was attached, making it difficult to disburse salaries to employees.

The petitioner submitted that it was willing to deposit 10% of the disputed tax amount if the court set aside the impugned orders.

Respondent’s Response

The respondent, conceded that if the petitioner deposited 10% of the disputed tax, the court could consider the petitioner’s prayer.

Court Findings and Decision

The Madras High Court ruled in favor of the petitioner, holding that the impugned orders were passed without affording the petitioner an opportunity to be heard. The notices were not served physically but were merely uploaded on the GST portal, which the petitioner was unaware of. The court held that the orders were ex-parte and, therefore, unsustainable in law.

The court emphasized that the principles of natural justice were violated, as the petitioner was not given a fair chance to present its case. The court set aside the impugned orders and remanded the matters back to the Revenue for fresh consideration and the court directed the respondent to defreeze the petitioner’s bank account upon proof of payment of 10% of the disputed tax.

To download official order, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post Issuing a notice on the GST portal is not sufficient; it must also be communicated separately via email or post appeared first on Tax Unplug.

In India, GST (Goods and Services Tax) is an essential component of the tax system. While GST streamlines taxation, businesses frequently receive GST notices for various compliance difficulties. This tutorial covers the many sorts of GST notices and how firms in Mumbai, Surat, Pune, Jodhpur, Jaipur, and Ahmedabad may effectively manage them.

What is a GST Notice?

A GST notice is an official communication sent by the tax authorities to businesses for various reasons, such as discrepancies in GST filings, tax evasion suspicions, or audit requirements. Receiving a GST notice does not always indicate wrongdoing; it’s often a call for clarification or compliance.

Common Reasons for Receiving GST Notices

1. Mismatch in GST Returns: Discrepancies between GSTR-1, GSTR-3B, and GSTR-2A.
2. Late GST Filings: Missing deadlines for GST return submissions.
3. Excess Input Tax Credit (ITC): Claiming more ITC than allowed.
4. Tax Payment Shortfall: Underpayment or non-payment of GST dues.
5. GST Registration Issues: Errors in business details or registration processes.
6. Audit or Inspection: Random or risk-based audits conducted by tax authorities.

Types of GST Notices

1. Notice for Filing Returns (Form GSTR-3A)

Issued when a business fails to file GST returns on time.

2. Scrutiny Notice (Section 61)

Sent if the tax officer finds inconsistencies in filed returns.

3. Show Cause Notice (SCN)

A formal notice asking the taxpayer to explain discrepancies or justify actions.

4. Demand Notice (Section 73/74)

Issued when tax is unpaid or short-paid, either due to error (Section 73) or fraud (Section 74).

5. Audit Notice (Section 65)

Received if your business is selected for a GST audit.

Steps to Respond to a GST Notice

1. Read the Notice Carefully: Understand the issue and required action.
2. Gather Documents: Collect necessary records like invoices, returns, and payment details.
3. Consult a Tax Expert: Seek professional help from TaxUnplug, the Tax Consultant in India, for accurate responses.
4. Respond Within Deadline: Submit your reply within the specified timeframe.
5. Rectify Errors: If the notice highlights mistakes, correct them in your GST portal.

Tips to Avoid GST Notices

• File Timely Returns: Meet deadlines for all GST filings.
• Reconcile Data Regularly: Ensure GSTR-1, GSTR-3B, and GSTR-2A match.
• Maintain Records: Keep invoices, receipts, and transaction details updated.
• Avoid Excess ITC Claims: Claim input tax credit only as per rules.
• Hire Professionals: Engage TaxUnplug, the Tax Consultant in India, to manage your GST compliance.

Why Choose TaxUnplug for GST Services?

TaxUnplug, the Tax Consultant in India, provides expert assistance for GST compliance. Whether you’re based in Mumbai, Surat, Pune, Jodhpur, Jaipur, or Ahmedabad, we’re here to help you manage your GST notices efficiently.

Frequently Asked Questions

1. Can I avoid GST notices completely?

While you can’t avoid random audits, maintaining proper compliance can significantly reduce the chances of receiving GST notices.

2. What is the penalty for non-compliance with a GST notice?

Penalties vary depending on the type of notice and issue. Consult TaxUnplug, the Tax Consultant in India, for detailed information.

3. What should I do if I receive a GST notice?

You should carefully read the notice, understand its requirements, and respond within the deadline. Consult TaxUnplug for expert guidance.

4. How can I check the status of my GST notice?

Log in to the GST portal and navigate to the “Notices and Orders” section to view the status of your notice.

Conclusion

GST notices are a part of the taxation process and not always a cause for worry. By understanding their types and ensuring timely compliance, businesses in Mumbai, Surat, Pune, Jodhpur, Jaipur, and Ahmedabad can manage them effectively. Partnering with TaxUnplug, the Tax Consultant in India, ensures smooth handling of all GST-related issues.

The post GST Notices Explained: A Quick Guide for Businesses appeared first on Tax Unplug.