Demand cut from ₹10,050 to ₹1,310
TaxSavvy for GST notice
GST notice? Reply before it turns into a demand.
We read the notice, reconcile your returns and file the reply on time.
If you wait: Demand with 18% interest and penalty up to 100% of tax (CGST Sec 50 and 74A)
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Only the documents this job needs. Upload once, or send on WhatsApp.
Discussion
The few questions that change the answer, asked once, yes or no.
Forms
We prepare and file. You stay in the loop for every OTP.
Deliverables
The filing, the acknowledgement and a written answer in FPAC.
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹5.7 lakh still to come in
Sample 2 receipts, ₹3.2 lakh, have no invoice
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
GSTR-2A / 2B mismatch notices: ITC reversal demands
- Facts
- The most common GST notice: your GSTR-2B shows less ITC than what you claimed in GSTR-3B. Reasons: vendor didn't file GSTR-1, vendor filed after your return date, invoice uploaded incorrectly.
- Provisions and law
- CGST Act, Sec 16(2)(aa), 16(4) | Rule 36(4)
- Analysis
- Sec 16(2)(aa): ITC is available only on invoices appearing in GSTR-2B. If not in GSTR-2B, ITC must be reversed with interest (18% per annum). Defence: Get vendor to file/amend their GSTR-1. Once vendor files, the invoice appears in your GSTR-2B and ITC can be claimed. Chasing vendors is now a mandatory compliance activity.
DRC-01 / DRC-01A: Show Cause Notice under GST
- Facts
- DRC-01A (Pre-SCN): An intimation before the formal SCN, giving you a chance to pay and close the matter without formal proceedings. Respond within 30 days. If you pay + interest, the SCN is not issued.
- Provisions and law
- CGST Act 2017, Sec 73 (non-fraud), Sec 74 (fraud) | Rule 100
- Analysis
- DRC-01 (Show Cause Notice): Formal SCN issued under Sec 73 or 74. Sec 73 = non-fraud cases (10% penalty). Sec 74 = fraud/suppression (100% penalty). Reply within 30 days. If the GST officer is satisfied with your reply, the proceedings are dropped. If not, a personal hearing is scheduled before an order is passed. Always respond to DRC-01A, it's the cheapest way to close a GST matter. Ignoring it escalates to DRC-01 with higher stakes.
- Conclusion
- Acknowledge receipt and state your position clearly
- Address each point in the SCN specifically, don't ignore any allegation
- Provide GSTR-1, GSTR-3B, GSTR-2B reconciliation for the disputed period
- If ITC is being denied: provide tax invoices, e-way bills, payment proof from vendor
SCN: Show Cause Notice Under GST
- Facts
- A Show Cause Notice is the GST department's opening move in any demand action. Every SCN demands a written response explaining why the proposed tax demand should not be confirmed. Non-response = ex-parte order. Average demand confirmed: 90% when taxpayer does not respond. Average demand when CA responds with evidence: 40-60% reduction.
- Provisions and law
- Sec 73; Sec 74; Sec 75(6); Sec 75(4); Sec 107
- Analysis
- Most common SCN triggers: (1) ITC mismatch, GSTR-2A shows less than what you claimed in GSTR-3B. (2) GSTR-1 vs GSTR-3B mismatch, different outward supply totals. (3) Turnover mismatch, GSTR-9 vs GSTR-3B. (4) Excess ITC claimed including blocked credits. (5) Tax on advances received but not declared. (6) Place of supply incorrectly determined (IGST vs CGST+SGST applied wrong). Section 73 vs Section 74: If department alleges fraud, misstatement, or suppression → Section 74 notice (100% penalty). For normal differences without fraud allegation → Section 73 (10% penalty). In practice, many notices are wrongly issued under Section 74. If your CA can establish the discrepancy was not fraudulent → converted to Section 73, penalty drops from 100% to 10%.
- Conclusion
- Read SCN completely, identify: which section (73 or 74), which FY, which specific issue
- Note the response deadline on the SCN, never miss it, no automatic extension
- Calendar the personal hearing date if mentioned, request if not mentioned
- Identify the root cause: ITC mismatch? GSTR-1/3B mismatch? Wrong tax rate? Blocked credit?
Section 270(1) (old 143(1)): Intimation and Demand
- Facts
- The most common IT notice, sent automatically by the CPC computer. Not a scrutiny notice. Not a raid. But if ignored or mishandled, the demand amount gets locked and interest begins. Most Sec 270(1), Income-tax Act 2025 (old Sec 143(1)) demands can be reduced to zero.
- Provisions and law
- Sec 270(1) (old 143(1)); Sec 270(2) (old 143(1)(a)); Sec 289 (old 156); Sec 154; Sec 263(5) (old 139(5))
- Analysis
- What triggers Sec 270(1) (old Sec 143(1)) demand: (1) AIS shows income not declared in ITR, most common. (2) TDS in Form 168 (old Form 26AS) not matching claimed TDS in ITR. (3) Deduction claimed exceeds limit. (4) Arithmetical mistake in ITR. (5) Carried-forward loss claimed without filing return in loss year. Three possible Sec 270(1) (old Sec 143(1)) outcomes: (A) Refund, CPC agrees with your return, issues refund. (B) No demand, no refund, CPC processing matches your return. (C) Demand, CPC finds discrepancy, raises a demand. Do NOT just pay the demand: Sec 270(1) (old Sec 143(1)) demands are often incorrect. In the most common case, FD interest in AIS that taxpayer forgot to declare, the demand is valid but the penalty is avoidable. In the second most common case, TDS credit mismatch due to PAN error by employer, demand is incorrect and should be rectified. Response options: (A) Agree, pay demand.
- Conclusion
- Download Sec 270(1) (old Sec 143(1)) intimation PDF from IT portal, check exact demand amount and reason
- Compare CPC's income computation vs your filed ITR line by line
- Check AIS, identify which item CPC flagged as not declared
- Check Form 168 (old Form 26AS) TDS credits vs TDS you claimed in ITR, any mismatch?
GST notice? Reply before it turns into a demand.
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