Demand & Show Cause Notice Handling
Replies and representation for show cause notices and demands raised under the Goods and Services Tax, from pre-notice intimation through to the summary order.
A demand normally begins with a pre-notice intimation in Form GST DRC-01A, followed by a show cause notice in Form GST DRC-01 alleging that tax has not been paid, has been short paid, has been erroneously refunded, or that input tax credit has been wrongly availed or utilised. Where fraud, wilful misstatement or suppression is alleged, both the limitation period and the penalty are higher. The reply is filed in Form GST DRC-06, and the proceedings conclude in an order with a summary in Form GST DRC-07.
What our demand and notice service covers
Answering the notice that was actually issued, on every ground available.
- Responding to pre-notice intimation in Form GST DRC-01A before the notice is issued
- Examining jurisdiction, limitation and the material relied on in the notice
- Contesting the invocation of the extended period where fraud or suppression is alleged
- Drafting the reply in Form GST DRC-06 with documents, reconciliations and case law
- Computing the exposure to tax, interest and penalty under each alternative outcome
- Advising on whether to pay and close, or to contest, at each stage of the proceedings
What determines the outcome of a demand
The four issues that decide whether the demand survives.
Pre-Notice Intimation
Form GST DRC-01A gives you an opportunity to explain or to pay before a formal notice issues, and a good reply at this stage can end the matter.
Show Cause Notice
The notice fixes the case. Nothing outside the allegations made in it can be confirmed in the order that follows.
Limitation
Whether the notice is within the normal period, or the extended period alleging fraud or suppression, changes both the exposure and the defence.
Penalty Exposure
Penalty differs sharply depending on the provision invoked and on when payment is made, which makes the timing of any decision to pay a strategic one.
Our process
From initial consultation to completion.
Notice Analysis
Reading the notice against the record: period, provision, allegations, and the documents relied upon.
Exposure Assessment
Quantifying tax, interest and penalty on the department's case and on ours, so the decision to contest is an informed one.
Reply Drafting
Filing a reply that answers each allegation on facts and law, with the supporting record annexed.
Hearing and Order
Appearing at the personal hearing, filing further submissions, and reviewing the order for appeal.
Why the reply matters more than the appeal
What sets our approach apart.
Extended period allegations must be met head on
An allegation of suppression or wilful misstatement that is not specifically answered tends to be treated as unrebutted at every later stage.
The reply frames the appeal
Grounds not taken in the reply are harder to argue later, and evidence not filed then is harder to introduce afterwards.
Penalty depends on when you act
The law provides reduced penalty where tax and interest are paid at defined stages, and those stages close permanently once passed.
Show cause notice questions answered
What people ask before engaging us.
Show cause notice on your desk?
The reply decides the case. Let us draft it before the hearing date is fixed.
