A GST demand or show-cause notice is generally a proposed claim and an opportunity to respond; an assessment or adjudication order records the officer’s determination. First identify exactly what document you received and which statutory provision it cites. Then act on the deadline and procedure for that document—not on a presumed universal GST response period.
How a demand notice differs from an order
A show-cause notice ordinarily sets out the authority’s allegation or proposed demand and asks why specified tax, interest or penalty should not be paid. For example, section 73 of the Central Goods and Services Tax Act (CGST Act) addresses certain cases not involving fraud, wilful misstatement or suppression; section 74 addresses cases alleging those circumstances. The notice gives the recipient an opportunity to answer. Its issuance alone does not make it the final adjudication order. See the CBIC-hosted CGST Act text.
An assessment or adjudication order records the proper officer’s determination after considering the matter. GST communications can arise through different statutory routes, so do not infer the legal effect from a label such as “demand” alone. Read the document’s title, operative portion and cited section, and distinguish a notice, statement, intimation and order. The relevant rules and forms are set out in the Act text and CGST Rules.
What to do when you receive a notice
- Preserve the notice and verify service. Record when and how it was served. Check the GST portal and save the complete notice, attachments, electronic summary and related correspondence. Where applicable, compare the Rule 142 summary—such as DRC-01 or DRC-02—with the underlying notice or statement. Rule 142 also refers to DRC-03 payment intimation in specified circumstances; it is not a substitute for determining what the particular notice requires.
- Identify the legal route and issue. Note the issuing officer, cited section, tax period, registration involved and alleged issue—for example, short payment, refund or input tax credit (ITC). Confirm whether the communication is an intimation, show-cause notice, statement or order.
- Reconcile the claim against your records. Compare the allegation and calculation with returns, invoices, ledgers, payment records, ITC evidence and earlier submissions. Separate amounts you accept, dispute or cannot yet explain. Organize calculations and supporting documents so each figure in the notice can be traced.
- File a reasoned reply by the applicable deadline. Address each allegation in sequence, explain the factual and legal basis for your position, and attach relevant records. Request a hearing where appropriate under the provision that applies. The Act recognizes the opportunity to show cause, but the sources cited here do not establish one response period for every notice type. Use the deadline stated in your notice and verify it against the governing provision and rules.
- Keep proof that the reply was filed. Save the submitted response, portal acknowledgment, attachments and any hearing record. An informal email or an uploaded draft should not be treated as proof of a completed filing.
What to do if you received an order
Read the findings and operative portion, check how tax, interest and penalty were calculated, and establish the date the order was communicated. If it is adverse, promptly assess the available statutory remedy, its limitation period and any payment or pre-deposit conditions. A reply to a show-cause notice and an appeal from an order are different procedural stages, with different filing requirements.
Section 107(1) in the retrieved CBIC-hosted Act text provides for an appeal to the Appellate Authority within three months from communication of the decision or order, with a further month possible where sufficient cause is accepted. That text may not reflect every later amendment or the rules applicable to every case. Verify the current provision, applicable filing deadline and conditions for your matter before relying on a date. The appeal rules describe FORM GST APL-01 and related filing and acknowledgment steps: see the CGST Rules. Do not assume that filing an appeal automatically stays recovery.
Check whether a narrowly defined relief applies
Historical section 73 matters: section 128A
CBIC Circular 238/32/2024-GST explains aspects of the section 128A waiver route for defined historical section 73 matters. It is not a general waiver of every GST demand. Check the covered period, procedural stage, payment conditions, relevant notifications and current eligibility. The circular also discusses withdrawal of certain appeals or writ petitions in situations covered by the scheme, so assess that consequence against the specific case before acting.
Specified historical ITC disputes: section 16(4)
CBIC Circular 237/31/2024-GST addresses retrospective amendments to ITC provisions for specified cases involving section 16(4) demands. It discusses matters at different stages, including cases where a demand notice has not yet issued and cases where a notice or order exists. Its relevance depends on the facts and statutory conditions; it should not be applied to unrelated ITC disputes.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Choose the next step by document stage
| What you received | Immediate focus | Key timing or filing issue |
|---|---|---|
| Show-cause notice or demand notice | Understand the allegation, reconcile the amount and submit a supported response. | Use the deadline in the notice and verify the period under the applicable provision; there is no single response period established here for every notice. |
| Assessment or adjudication order | Review the findings and calculation, then assess whether to appeal or pursue another available route. | Section 107(1) in the retrieved Act text states three months from communication, with a possible additional month for sufficient cause; verify current law and requirements. |
For either stage, assess the actual document and file, date of service or communication, amount and facts in dispute, possible payment or pre-deposit requirements, and whether a specific relief provision covers the period and proceeding. Consider a qualified GST practitioner or tax lawyer when the amount is material, fraud or suppression is alleged, multiple periods or registrations are involved, or the deadline or remedy is uncertain. That is a practical option, not a government endorsement.
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