Expert GST Notice Resolution & Consultation

DRC-01 is a Summary of Show Cause Notice issued when the department believes there's tax evasion, wrong ITC claim, or any GST violation. It's a serious notice requiring a detailed reply within 30 days. If you don't reply or the reply is unsatisfactory, the officer can pass a demand order (DRC-07) with interest and penalty. It's crucial to respond with proper documentation and legal arguments.

If you don't reply within the stipulated time, the department can pass an ex-parte order confirming the entire demand with interest and penalty. This order can lead to: (1) Recovery proceedings including bank account attachment, (2) Blocking of your e-waybill generation, (3) Cancellation of GST registration, (4) In serious cases, even arrest. It's extremely important to respond to every notice within the deadline.

DGGI (Directorate General of GST Intelligence) is the apex intelligence agency for GST, similar to what CBI is for criminal cases. They investigate serious offences like fake invoicing, large-scale ITC fraud, and tax evasion. DGGI has powers to summon, search premises, seize documents, and even arrest in cases where evasion exceeds ₹5 crore. A DGGI notice requires immediate expert attention and should never be taken lightly.

First, download your GSTR-2B and reconcile it with your purchase register and GSTR-3B claims. Identify why the mismatch occurred - whether supplier hasn't filed GSTR-1, invoice details don't match, or you've claimed blocked credit. Gather all invoices, payment proofs, and supplier GSTINs. Prepare a reconciliation statement and submit a detailed reply explaining each mismatch with supporting documents.

Yes, in many cases you can pay the tax amount with interest using Form DRC-03 before the Show Cause Notice is issued to avoid penalty. Even after SCN, if you pay within 30 days of the order, reduced penalty applies. However, this should be done only after careful analysis of whether the demand is legally correct. Paying without merit admission can set a wrong precedent for future cases.

You must file first appeal before the Appellate Authority within 3 months from the date of the order. This can be extended by 1 month if sufficient cause is shown. For appeal to GST Tribunal (once functional), the time limit is also 3 months. Before filing appeal, you typically need to pre-deposit 10% of the disputed tax amount (for first appeal) or 20% (for tribunal appeal).

Yes, if your registration was cancelled by the department (suo-moto), you can apply for revocation within 90 days using Form REG-21. You need to: (1) File all pending returns with tax and late fees, (2) Explain why registration should be restored, (3) Submit supporting documents. If 90 days have passed, you may need to approach the Appellate Authority or file a fresh registration application.

Yes, under Section 69 of CGST Act, the Commissioner can authorize arrest if the person has committed offences involving tax evasion of more than ₹5 crore. Offences include: fake invoicing without supply of goods, fraudulent ITC claims, and tax collection without depositing. Offences above ₹5 crore are cognizable and non-bailable. However, arrest is not automatic and requires proper procedure. If facing such a situation, immediately consult a legal expert.