GST Show Cause Notice Lawyer in Mumbai
Overview and Legal Basis of SCNs in Mumbai
A Show Cause Notice (SCN) under GST in Mumbai is a formal instrument issued by the jurisdictional authorities to propose a demand for tax, interest, and penalty. These notices are governed primarily by Section 73 (for non-fraud cases) and Section 74 (for cases alleging fraud, willful misstatement, or suppression of facts) of the CGST Act, 2017. The process involves specific forms: DRC-01A (pre-notice intimation), DRC-01 (SCN summary), and DRC-06 (for filing the reply). A GST Show Cause Notice Lawyer in Mumbai provides critical assistance in navigating this complex process, which often involves high-stakes financial and service sector issues specific to the region.
Common Grounds for SCNs in Mumbai Matters
- Input Tax Credit (ITC) Issues: Disputes over ITC eligibility on financial services, common inputs for taxable and exempt supplies, and issues arising from supplier non-compliance.
- Valuation and Place of Supply: Complexities in valuing services, particularly in the financial sector, and determining the correct place of supply for inter-State transactions.
- Import/Export and Port-related Services: SCNs related to the valuation of imports, applicability of GST on ocean freight, and classification of port-related services.
- Return Mismatches: Discrepancies between GSTR-1, GSTR-3B, and GSTR-2B, often flagged by data analytics systems used by the Mumbai tax authorities.
Procedural Steps for an Effective Reply
- Analysis of Notice: A GST Show Cause Notice Lawyer in Mumbai will first scrutinize the SCN, DRC-01, and any annexed documents to understand the precise allegations, period, and quantification. Verifying jurisdiction and checking for limitation are key initial steps.
- Evidence Collation: Compile all relevant documents: tax invoices, contracts, service agreements, e-way bills, shipping bills, bank statements, and vendor correspondence.
- Reconciliation: Prepare detailed reconciliations (e.g., GSTR-1 vs. 3B, Books vs. 3B, ITC as per books vs. 2B) to substantiate your position and identify any errors in the department’s calculations.
- Drafting the Reply (DRC-06): Structure the reply with preliminary objections (if any), a point-wise rebuttal to each allegation with cross-references to evidence, legal submissions citing relevant provisions and case law, and a clear prayer for relief.
- Filing and Hearing: Submit the reply via the GST portal within the stipulated time and request a personal hearing. Prepare a concise written synopsis for the hearing to present the case effectively.
Evidence and Documentation Checklist
- Complete SCN with all annexures.
- GSTR-1, GSTR-3B, and GSTR-2B for the disputed period.
- Audited financials and tax audit reports.
- Invoices, purchase orders, and service level agreements (SLAs).
- E-way bills and transporter records (LR/GRN).
- Bank statements reflecting payments to vendors and receipt from clients.
- Vendor confirmations or declarations, where applicable.
Hearing, Adjudication, and Post-Order Remedies
Representation by a GST Show Cause Notice Lawyer in Mumbai during the personal hearing is crucial to explain complex factual matrices. The adjudicating authority will pass an order (summarized in DRC-07). If the order is adverse, an appeal can be filed under Section 107 of the CGST Act within the statutory time limit, subject to a mandatory pre-deposit.
AMLEGALS – Mumbai Office
For assistance with GST Show Cause Notices in Mumbai, please contact our local officeatinfo@amlegals.com or call boardline on 91-8448548549
Frequently Asked Questions (FAQs)
1. What distinguishes a Section 73 from a Section 74 SCN in Mumbai?
For an appeal to the first appellate authority under Section 107, a mandatory pre-deposit of 10% of the disputed tax amount is required. This must be paid before the appeal can be filed.
