GST notices or orders must be clear

GST officers will no longer be permitted to issue a single tax demand notice combining liabilities for multiple financial years, without specifying the demand for each year separately. They will be required to provide a year-wise breakdown of the tax demand.

In one of several circulars issued by the Central Board of Indirect Taxes and Customs (CBIC), tax officers have been directed to clearly specify the separate demands for each financial year in a single notice covering multiple years. This will help taxpayers understand the demands and respond appropriately.

The circular establishes basic standards for show-cause notices, adjudication orders and appeals under the Goods and Services Tax (GST) regime to ensure that proceedings are transparent and fair.

Notices must now specify the facts, evidence, relevant legal provisions and the exact amount of tax being demanded. Merely citing sections of the law will not be sufficient.

Officers cannot invoke stringent provisions relating to fraud, wilful misstatement or suppression of facts merely because tax has not been paid or a discrepancy has been identified. They must provide specific evidence of the intent to evade tax in the notice itself.

Adjudication orders must address the points raised by taxpayers. A one-line statement such as “the reply has been considered” will not be acceptable. Officers must explain why they have accepted or rejected the explanations provided by taxpayers. Personal hearings must be meaningful, and virtual hearings are encouraged.

 👇 Please Note 👇

Thank you for reading our article!

If you don’t received industries updates, News & our daily articles

please Whatsapp your Wapp No. or V Card on 8278298590, your number will be added in our broadcasting list.

Join our WhatsApp Channel “Ply & Panel Ind. News”