Respond to a GST show-cause notice by first matching the notice to its portal case: identify the GSTIN, tax period, statutory section, allegations, calculations, form reference and the response date shown by the issuing officer. For a notice procedure in which the summary is uploaded in DRC-01, the prescribed reply form is generally FORM GST DRC-06. File an allegation-by-allegation reply, index documents that prove each factual statement, request a personal hearing when oral clarification would help, and preserve the complete filing record.
Do not assume that every GST notice has the same deadline or that an older section 73 or 74 explanation applies to a later tax period. The notice and the live GST portal case control the immediate filing date; the applicable Act, rules and amendments control the legal consequences.
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What a GST show-cause notice requires you to do
A show-cause notice (SCN) is the department’s formal statement of the tax, input tax credit (ITC), interest or penalty it proposes to recover and the reasons offered for that proposal. Your response is not simply a denial. It should show, issue by issue, which facts you accept, which you dispute, how the department’s calculation is wrong or incomplete, and where the supporting record can be found.
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Where the relevant notice summary is in DRC-01, Rule 142(4) identifies FORM GST DRC-06 as the reply form. The form has fields for the written reply, documents uploaded and an option to request a personal hearing. That form reference does not eliminate the need to follow the case-specific instructions displayed with the notice.
First triage: identify the legal route and the period
The tax period determines which statutory route you should analyze. The CBIC tax-information pages cited for this procedure state that sections 73 and 74 apply to determinations for periods up to financial year (FY) 2023-24. They should not be copied into a response for FY 2024-25 or a later period without checking the current legislation and rules.
| Route named in the notice | What it addresses in the cited provisions | Period qualification | Practical response question |
|---|---|---|---|
| Section 73 | Tax not paid, short-paid, refunded wrongly or ITC availed or utilised wrongly in circumstances other than fraud, wilful misstatement or suppression to evade tax. | The cited CBIC material describes this route for periods up to FY 2023-24. | Do the records disprove the proposed tax or calculation, and does the notice actually fit a non-fraud case? |
| Section 74 | The corresponding specified allegations involving fraud, wilful misstatement or suppression to evade tax, with different payment and penalty consequences. | The cited CBIC material describes this route for periods up to FY 2023-24. | Does the notice identify facts that could legally support the allegation, rather than merely using a label? |
| Later-period provision | A notice for FY 2024-25 onward may be governed by amended provisions, including section 74A, and related rule changes. | The source material does not establish the current text, deadlines or portal workflow for those later periods. | Check the current Act, rules, amendments and the notice before stating a deadline, payment concession or penalty outcome. |
For a section 73 matter within the cited period, the statutory text provides a specific consequence when tax and interest are paid within 30 days of issue of the show-cause notice: no penalty is payable and proceedings are concluded in the circumstances described by that section. This is a legal rule for the covered situation, not advice to pay a disputed demand. Check the notice, the arithmetic, the applicable period and current amendments before deciding whether payment is appropriate.
Section 74 has separate payment and penalty provisions. Do not import the section 73 30-day consequence into a section 74 allegation, and do not state a later-period consequence from either section without verifying the law in force for that period.
How much time do you have to reply?
There is no single reply period established for every GST SCN in the materials used here. Use the deadline displayed in the notice and the live portal case, and treat the date as a filing deadline rather than as a general description of when the officer must pass an order. The statutory time allowed to an officer to issue an order is not automatically the time allowed to a taxpayer to submit a reply.
Make a deadline record
- Write down the date and time shown in the notice, including the time zone if the portal displays one.
- Record when the notice was served and whether a later portal communication changes the response date.
- Save a PDF or screenshot of the notice, summary, attachments and deadline display.
- Work backward from the due date so that document collection, review, authorization and upload are completed before the final day.
If the deadline is too short
Consider sending a prompt written request for additional time through the route stated in the notice, explaining the specific records still being obtained and proposing a reasonable date. The materials reviewed do not establish a general entitlement to an extension or guarantee that an officer will grant one. A request for time is therefore not a substitute for filing a substantive reply by the existing deadline where a timely response is possible.
Build an allegation-and-evidence matrix
Read every allegation and every amount separately. A notice may combine output-tax differences, ITC issues, interest and penalty in one demand. Treating it as one total makes it difficult for the officer to see which part is accepted or disproved.
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| Column | What to enter |
|---|---|
| Notice point | The notice’s paragraph, table row or demand-head number. |
| Period | Month, quarter or financial year to which the allegation relates. |
| Department’s assertion | A neutral, short statement of what the officer says happened. |
| Tax or ITC figure | Tax, ITC, interest and penalty shown separately, with the notice’s calculation. |
| Taxpayer position | Admitted, partly admitted, disputed or not ascertainable from the records. |
| Reason | Factual correction, reconciliation difference, legal objection or computational error. |
| Exhibit and location | Exhibit number plus page, invoice, return period, ledger row or reconciliation line. |
| Relief sought | Drop, correct, recompute or otherwise adjust that particular demand head. |
This matrix is a working document, but it should drive the final submission. Every material factual assertion in the reply should point to a record that an officer can locate quickly.
Documents to collect and index
Attach records that establish the facts relevant to the allegation; there is no useful advantage in uploading an unstructured archive. Depending on the issue, practical evidence can include:
- Tax invoices, credit notes, debit notes and purchase or sales registers.
- GST returns, amendments, electronic cash and credit ledgers, and payment challans.
- Reconciliations between books, returns, e-invoice or e-way-bill records and the figures in the notice.
- Contracts, purchase orders, delivery records, proof of receipt or supply, and correspondence with customers or suppliers.
- Bank or payment records where consideration, reversal or repayment is relevant.
- Earlier replies, departmental communications, audit observations and documents already supplied.
These are examples, not an exhaustive statutory list. Include the record that proves the proposition you make, and omit irrelevant material that obscures the issue.
Use a consistent exhibit system
- Number exhibits in the order in which they are first cited, such as Exhibit 1 for the notice and Exhibit 2 for the relevant reconciliation.
- Give each exhibit a descriptive title and the covered period.
- Paginate multi-page files and cite the exact page, invoice number, return month or ledger row in the reply.
- Combine related pages into a readable PDF only when the portal permits that format and size; retain the original files separately.
- Prepare an exhibit index and upload it with the documents so the officer can map each file to a paragraph.
DRC-06 provides for documents uploaded. The portal’s file-size, format and naming rules can change, so follow the instructions displayed for the specific case rather than relying on an old checklist.
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A clear reply normally has six parts. Use the notice’s numbering wherever possible so the officer can compare the two documents without guessing which allegation you are answering.
1. Opening identification
State the GSTIN, notice and reference numbers, issue date, tax period, statutory provision cited and the fact that the submission is the reply being filed. Identify the authorized signatory and the date of submission.
2. Short factual background
Explain only the transactions and records needed to understand the dispute. For example, identify the relevant return periods, the nature of the supplies or purchases and how the books and returns were reconciled. Do not bury the response in a general history of the business.
3. Issue-wise response
For each allegation, reproduce or paraphrase the department’s point, state whether it is admitted or disputed, and give the factual and computational reason. If only part of an amount is correct, identify the exact part and show the corrected figure rather than issuing a blanket denial.
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4. Evidence references
Place the exhibit citation immediately after the proposition it supports. A useful citation identifies the document and its location: for example, “Exhibit 4, pages 12–14, purchase register for April 2023; the three invoices listed in the notice appear in rows 88–90.”
5. Legal grounds
Connect the legal argument to the period and allegation. If the notice invokes section 73 or 74 for a period up to FY 2023-24, address the statutory ingredients and the difference between a non-fraud route and an allegation of fraud, wilful misstatement or suppression. Explain why the cited facts do or do not meet the provision; do not rely on the section number alone.
6. Relief, hearing and verification
State precisely what you ask the officer to do: drop a demand head, correct an amount, recompute interest, remove an unsupported penalty proposal or accept an identified payment. Complete DRC-06’s verification and authorized-signatory fields.
Should you request a personal hearing?
DRC-06 includes a yes/no option for a personal hearing. Request one when oral clarification could materially assist—for example, where a reconciliation is complex, the notice relies on an apparent data mismatch, or the proposed fraud allegation turns on facts that documents alone may not explain.
Identify the issues for which the hearing is sought and keep the request consistent with the written reply. A hearing request does not establish that every request will be granted in every procedural setting. It also does not replace the written evidence: the officer should be able to understand your position from the filed submission even if no hearing occurs.
Filing through the GST portal and preserving proof
- Open the case identified in the notice using the official GST portal route specified for that communication.
- Confirm that the displayed notice number, period, GSTIN and demand heads match your draft.
- Enter or upload the written reply in the DRC-06 fields or attachments required by the case, including the document index.
- Mark the personal-hearing option and add the short explanation if a hearing is requested.
- Complete verification and authorized-signatory details, then submit before the displayed deadline.
- Download the filed reply, uploaded files, acknowledgment or reference number, and any generated receipt.
Retain screenshots showing successful submission and the portal status. Keep the final text exactly as filed, not merely the working draft. If an upload fails, record the error, check the portal’s file requirements and use the official support or communication route identified in the case; do not silently assume that an incomplete upload was accepted.
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Choosing among dispute, payment and partial admission
Your response can take different positions for different demand heads. The choice should follow a checked calculation and the applicable law, not the pressure of a deadline.
| Position | When it may fit | What the reply should show |
|---|---|---|
| Dispute | The tax, ITC, interest or penalty is unsupported, incorrectly calculated or based on facts your records disprove. | The specific defect, corrected computation and indexed evidence. |
| Partial admission | One component is accepted but another is not. | A head-by-head split, amount accepted, amount disputed and payment or adjustment record where relevant. |
| Acceptance after review | The notice’s factual and legal basis is verified and the taxpayer chooses to comply. | The amount and applicable statutory consequence, checked against the period and current law. |
| Hearing request alongside a dispute | Oral explanation would help resolve a material factual or reconciliation issue. | The precise issues requiring clarification and the written evidence supporting them. |
For section 73 situations covered by the cited text, payment of tax and interest within 30 days of issue can result in no penalty and conclusion of proceedings in the circumstances specified by that section. Before relying on that rule, verify that the period, section, amount and payment conditions match the notice. It is not a blanket settlement rule for every GST SCN.
Common mistakes and how to correct them
Using the wrong period’s law
A response that quotes section 73 or 74 consequences for FY 2024-25 or later without checking current amendments can misstate the taxpayer’s position. Identify the period on the first page of the reply and verify the currently applicable provision, including any later provision such as section 74A.
Answering the total instead of the allegations
“The demand is wrong” does not tell the officer which invoice, return or calculation is disputed. Mirror the notice’s numbering and answer every demand head separately.
Uploading documents without an index
Unlabeled files make a correct reconciliation difficult to verify. Number exhibits, paginate them and cite the exact location in each paragraph.
Confusing a notice deadline with an order deadline
The time an officer has to issue an order is not a universal reply period. Follow the date in the notice and portal case, and make any extension request promptly and in writing.
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The hearing option is supplementary. File the complete factual, documentary and legal response even when oral submissions are requested.
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Failing to preserve the filing record
Keep the notice, summary, attachments, final DRC-06, exhibit files, acknowledgment, screenshots, correspondence and any hearing record together. A later order or appeal may turn on what was actually filed and when.
What to do if an adverse order follows
Download and review the order against the notice and your response. Check whether the officer addressed each allegation, the evidence you cited, the calculation and any hearing request. Preserve the entire record: notice, DRC-06, exhibits, filing proof, hearing communications and order.
The official appeal rules provide for filing an appeal and restrict the admission of additional evidence to specified circumstances. That makes contemporaneous preservation important. Do not assume that a document omitted from the original reply can always be introduced later; obtain professional advice promptly if the amount is material or the order raises limitation, fraud, hearing or evidentiary issues.
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Consider consulting a qualified GST tax practitioner, chartered accountant or tax lawyer when the notice alleges fraud, wilful misstatement or suppression; involves a large amount; raises limitation or classification questions; requires a detailed reconciliation; follows a hearing; or may be appealed. A professional can review the notice-specific law and arithmetic, but the taxpayer still needs to supply complete records and confirm that the filed statement is accurate.
Handbooks and training material, including the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) GST demand and adjudication handbook, can provide background. They do not replace the current Act, rules, portal instructions or the wording of the notice.
A final pre-submission checklist
- The GSTIN, notice number, reference number, issue date, service date, period and officer match the portal case.
- The statutory section and rule have been checked against the period, especially where sections 73 or 74 are cited.
- Every allegation and demand head has an individual response.
- Tax, ITC, interest and penalty are shown separately and recalculated where disputed.
- Each material fact has an exhibit number and precise page, invoice, return or ledger reference.
- The relief requested is specific: drop, correct, recompute or accept a stated item.
- The DRC-06 hearing option is marked consistently with the written request, if used.
- Verification and authorized-signatory details are complete.
- The reply and attachments are filed through the stated official route before the displayed deadline.
- The acknowledgment, receipt, screenshots and exact filed files are stored securely.
A well-prepared GST SCN response is a traceable record: the officer can move from each allegation to your position, from your position to the legal reason, and from that reason to a particular page of evidence. That structure is more reliable than a long narrative, an unsupported denial or an assumption that an older deadline applies to every notice.
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