Show Cause Notice Under GST: Here are some of the reasons Why is Show Cause Notice Issued Under GST Act. What is a Show Cause Notice?

What is a Show Cause Notice?

A Show Cause Notice (SCN) is a warning or notice issued by a court, competent authority, or institution seeking to explain or “show cause” in writing to the taxpayer for an identified default as to why disciplinary/punitive action should not be taken. against the taxpayer for identified default.

A show cause notice is the first mandatory communication on a dealer proposing any demand under the GST Act 2017, other than payment of interest under Section 50 and non-filing of return under Section 62 of the GST Act. An issue on SCN does not necessarily end in a tax demand.

Why is Show Cause Notice Issued Under GST Act?

Here are some of the reasons Why is Show Cause Notice Issued Under GST Act. 

    • Non-filing of GSTR 3B and GSTR 1 for a period beyond six months.
    • Mismatch in GSTR 1 and GSTR 3B.
    • An individual who is liable to be registered under the Act has failed to register.
    • Short payment or nonpayment of GST Liability.
    • Mismatch in GSTR 1 and E-way Bill.
    • Mismatch of ITC.
    • The excess claim of refund Anti Profiteering Failed to respond within the time limit.
    • E-invoicing and e-waybill mismatch.

Recommended Blog: Consent Letter Format For GST Registration

Showcase notices shall be issued for the following.

List of cases where you can get the Show Cause Notice from the GST Department. so, Reply to the SCN within the time limit provided under the GST act. otherwise, interest and penalty will be levied.

Sr. No



1 REG 03 – Notice related to registration To be replied within 7 working days
2 REG 23 – Notice for Revocation or cancellation of registration. To be replied within 7 working days
3 GSTR 3A- Notice for non-filing of GST Returns GST Returns to be filed within 15  days for the months defaulted.
4 CMP 05- Notice to be an ineligible Composition dealer Reply within 15 days
5 RFD 8- Notice for rejection of GST refund Reply within 15 days
6 ADT 1 – Notice for conducting Audit u/s 65 To be replied to within the stipulated time of the notice.
7 DRC 1- Notice for tax demand To be replied to within 30 days.
8 DRC 10 – Notice for Auction of Goods To be replied as per the Notice.

Show Cause Notice Under Section 76

Taxes earned but not paid to the government form the subject of Section 76. If any amount due to the Government is not paid, the appropriate authority may issue a GST show-cause notice to the registered taxpayer who is liable to pay the amount, compelling them to show cause as to why the specified amount was not paid.

Show Cause Notice Under Section 73

For any reason other than fraud or willful misrepresentation or suppression of facts, Section 73 deals with the identification of tax that has not been paid, underpaid, or erroneously returned, or inputs excessive credit claims.

Download the Reply of Notice for the difference in Supply Value in GSTR 1 to GSTR 3B | GST Notice Reply Letter Format in Word

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