Compliance Pack
Reply to fake ITC notice when a supplier is found non-existent, Sec 16(2)(c)
What this means, checked by a CA
When a supplier you bought from is found to be fake, the department may ask you to reverse the credit with interest and penalty. We collect proof that your purchase was real, map it to every invoice in the notice, draft the reply and represent you at the hearing, and bring in a lawyer at once if summons, search or arrest is in the picture.
Quote
As needed, fixed after a quick look
- Delivered in Reply drafted within 7 working days of complete documents, or within the time given in the notice
- Due: Within the time given in the notice (usually 30 days for DRC-06 reply to a show cause notice); summons on the date stated
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
Notice, summons or intimation copy
Section, period, amount, DIN
Invoices from the named supplier
Invoice-wise mapping in reply
E-way bills and transport receipts
Proves goods moved
Weighbridge, GRN and stock records
Proves receipt and use
Bank payment trail to supplier
Shows genuine payment
Supplier portal status on invoice date
Registered when you bought
GSTR-2B showing supplier invoices
Supplier reported the sale
Supplier onboarding and due diligence fileOptional
Shows good faith
DiscussionWhat we discuss · 6 items
Is this a scrutiny note, an SCN, or a DGGI or CGST summons, and under which section?
Decides route and urgency
Did the goods physically reach you, and can each invoice be tied to an e-way bill and stock entry?
Core of the Sec 155 defence
Was the supplier registered and active on each invoice date?
Bona fide purchaser argument
Did any money come back to you or a related party after paying the supplier?
Changes the case; lawyer first
Has anyone asked you to pay under pressure during a visit or summons?
Coerced payment can be challenged
Is the amount above ₹5 crore, or has there been a search or arrest talk?
Bring in an advocate immediately
FormsForms we file · 7 items
Triage: read section, period, amount, DIN and response date; decide CA reply or CA plus advocate
Where: Internal. Due: Day 1
If summons: check DIN, approval, your status (witness or accused); attend on the date or seek adjournment in writing; carry documents asked for
Where: Summoning office. Due: Date in summons
Build invoice-wise evidence table for the named supplier
Per invoice: e-way bill, vehicle, freight, GRN or weighbridge, stock entry, bank payment date, supplier status on invoice date, 2B period
Where: Internal. Due: Within 7 days
Ask for the material relied on and seek cross-examination of the persons whose statements are used
Where: https://www.gst.gov.in. Due: With the reply
File reply to ASMT-10 in ASMT-11, or to SCN in DRC-06, and attend the personal hearing
Where: https://www.gst.gov.in. Due: Within time in notice
Compute exposure and options
Tax plus 18 percent interest plus penalty; under Sec 74A fraud cases, 15 percent penalty before SCN, 25 percent within 60 days of SCN, 50 percent within 60 days of order
Where: Internal. Due: Before reply
If order is adverse, file appeal with 10 percent pre-deposit within the appeal time
Where: https://www.gst.gov.in. Due: Appeal limit from order date
DeliverablesWhat you get · 3 items
Filed reply with evidence index
When: Within notice time
Summons attendance note and statement copy
When: On the day
Order (dropped or confirmed)
When: As issued
Questions people ask
Do I have to attend a DGGI summons?
Yes. It is a judicial proceeding; repeated non-appearance can lead to a complaint before a magistrate. Ask for a new date in writing if needed.
Can they summon our CEO or MD first?
Under CBIC Instruction 03/2022-23, senior management should not be summoned at the first instance unless their role is clear.
When should we get a lawyer?
At once on a summons in a fake ITC case, a search, or any hint of arrest; anticipatory bail is available even before an FIR.
Can arrest happen in an ITC mismatch?
Arrest is for specified Sec 132 offences, generally not for rate or interpretation disputes, and needs Commissioner approval and written grounds.
If I pay through DRC-03, does the notice go away?
Payment does not cure a defective notice; under Sec 74A early payment reduces penalty. Decide with advice.
Will my own registration be cancelled?
A buyer's registration should not be cancelled merely because the supplier's was.
Your Savvy is a verified professional. Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.