GST disputes and refunds
GST notices, investigations, refunds and appeals
We act on GST matters from the first scrutiny notice through investigation, adjudication and appeal, and on refund claims from filing to recovery of a rejected amount. Every reply is built on a reconciliation the officer can verify against the portal.
Matters we handle
Types of GST disputes
Input tax credit from suppliers alleged to be non-existent
Demands under the fraud provisions where suppliers are later cancelled or reported as fictitious. We establish the transaction on record: registration status on the invoice date, receipt of goods, movement and payment.
Search, inspection and summons
Proceedings under Sections 67 and 70, including statements and document requisitions. Replies are framed for the enquiry stage, with the aim of closing the enquiry before a demand is proposed.
Data-analytics demands
Differences drawn from e-way bills against GSTR-1 or GSTR-9, GSTR-2A or 2B against GSTR-3B, and third-party data against declared turnover. We rebuild the department’s figure from source and separate timing, credit notes and true gaps.
Invocation of the extended period
Challenges to Section 74 notices issued without a specific finding of fraud, suppression or wilful misstatement, and to penalties levied twice for the same default.
Blocking of credit and cancellation of registration
Credit ledgers blocked under Rule 86A, and suspension or cancellation of registration, with applications for unblocking and revocation.
Departmental and special audits
Audits under Sections 65 and 66: reconciliations requested by the audit team, replies to queries, and a written response to observations before they turn into a demand.
Refunds
Refund claims and rejections
Exports of goods and services
Refund of unutilised credit on zero-rated supplies under LUT, and of IGST paid on exports, including mismatches between shipping bills and returns and delays in realisation of export proceeds.
Inverted duty structure
Refund of accumulated credit where inputs are taxed at a higher rate than the output, computed under Rule 89(5), with the treatment of input services and capital goods set out in the claim.
Deficiency memos and rejections
Replies to RFD-03 deficiency memos and RFD-08 show cause notices, and appeals against rejection orders in RFD-06.
Stages
Where we act
Scrutiny
ASMT-10 notices and replies, closing in ASMT-12 where the explanation is accepted.
Pre-notice and show cause notice
DRC-01A intimations and DRC-01 notices, with the reply in DRC-06 and the personal hearing.
Adjudication
Orders in DRC-07, rectification of errors apparent on record, and payment under protest where it is warranted.
Appeal
Appeals before the Appellate Authority with the 10% pre-deposit, and before the GST Appellate Tribunal. Writ matters are coordinated with advocates.
GST questions
If I agree with part of an ASMT-10 difference, what should the reply say?
Pay the accepted part with interest through DRC-03 and quote it in the reply, then explain the rest with a reconciliation. If the officer accepts the explanation, proceedings close in ASMT-12. A difference left unexplained usually becomes a show cause notice.
Can I pay early and avoid penalty?
Under Section 73, tax paid with interest before the show cause notice, or within 30 days of it, carries no penalty. Under Section 74, where fraud or suppression is alleged, early payment reduces the penalty to 15% of the tax before the notice and 25% within 30 days of it. For FY 2024-25 onwards, Section 74A replaces both: the same reductions apply, but the window after the notice is 60 days instead of 30.
Is an e-way bill mismatch enough to deny input tax credit?
The conditions for credit are in Section 16: a tax invoice, receipt of goods, tax paid by the supplier and a return filed. An e-way bill is a movement document under Rule 138, not one of those conditions. A reply still has to prove receipt through other records, such as weighment slips, transport documents and the stock register.
My supplier did not file GSTR-3B, or its registration was cancelled later. What now?
Where the supplier has not paid the tax, Rule 37A requires the credit to be reversed, and it can be reclaimed once the supplier files. Where the registration was cancelled after the purchase, the reply shows that the registration was active on the invoice date, the goods were received and payment went through the bank.
What does a departmental GST audit involve?
The department gives at least 15 working days notice in ADT-01, completes the audit within three months (extendable by six), and records its findings in ADT-02. Any discrepancy not settled at that stage can lead to proceedings under Section 73 or 74, so the response to audit observations matters.
What is the time limit and pre-deposit for a GST appeal?
A first appeal must be filed within three months of the order being communicated; the authority can condone a further one month for sufficient cause. It needs a pre-deposit of 10% of the disputed tax. An appeal to the GST Appellate Tribunal needs a further 10%. Both deposits are subject to statutory caps.
What is the time limit for a GST refund claim?
A refund must generally be claimed within two years from the relevant date set out in Section 54. For exports and inverted duty structure, the claim is for unutilised input tax credit, and only credit on inputs counts for inverted duty refunds; input services and capital goods are excluded by the formula in Rule 89(5).
Received a GST notice or refund rejection?
Send the notice or order and its due date. We call you within one working day.