Are you worried about replying a notice under GST ?

This Article will cover all the important aspects which should be kept in our mind while drafting Reply for any Notice under GST.

1. Coverage of issues: The reply should be prepared by responding to each and every paragraph of show cause notice. The drafting should cover response to all the issues and allegations made in the notice. If any of the issue/ allegation is not addressed, the proper officer may deem it as acceptance of the same and it will have a negative impact on the outcome of the adjudication process.
2. Reference to the Provision of Law : The reply should be crisp and specific to the point and it should not be like beating around the bush. Whenever required, the references of the provisions of law can be quoted and explained in detailed manner which will convey the clear message of how we have interpreted the provisions.
3. Interpretation Issue : It has been held in many judgements under the erstwhile law that when the issue involves interpretation, penal provisions cannot be invoked on the tax payer. Whenever there is an interpretational issue, the response should contain the structured method of interpreting each and every word, phrase or line of the section or rule and arrive at a conclusion, giving the meaning as understood by us.
4. Classification issue : The major contentious issue which is expected to break out will be on classification. The taxpayer would classify certain particular goods or service under a particular HSN Tariff Code/ SAC Code. However, the proper officer may have another view on classification of those goods and services. If the rate of taxes of the goods or services in dispute happens to be the same, it may not have much implication.
5. Calculation Tables : Whenever the issue pertains to valuation or calculation of tax liability, it should be the endeavour of the notice to give the complete basis and method of arriving at a particular value as per the valuation rules based on which the tax payer has declared the value of taxable supply and calculated tax liability at appropriate rates.
6. Annexure : The reply should be cluttered by dumping all the details at one place. The times or details which are referred or which cannot fit within the response should always be given as annexure. This will help the reader of the response to develop a positive feel and understand the issue in better manner and also refer to annexures wherever necessary.
7. Documentation and Submission : The reply to show cause notice shall be printed on the letter head of the notice along with the annexures on white sheets of size A4 or legal as per requirement. In total, three sets of the response shall be prepared. One for submission with the Department, second copy for obtaining acknowledgment and the third one as client copy which will also come handy in time of need. The response shall be printed with page numbers on every page including annexures. The papers shall be neatly assembled and tagged properly before submission to the department.