Department of Trade and Taxes issued Guidelines for Issuance of GST Show Cause Notice

The Department of Trade & Taxes, Government of the National Capital Territory of Delhi, released indicative guidelines for the issuance of Show Cause Notices (“SCNs”) vide F. No. 1(2)/DTT/L&J/Misc./2019-20/77-79 dated February 01, 2022.

It has been brought to the notice of the Competent Authority that in several instances non­speaking & vague Show Cause Notices (SCNs) are being issued in violation of provisions of the GST Act and Rules made thereunder. In view of the above, it is important that proper diligence is made before issuance of SCNs by the Proper Officers.

A SCN should comprise of the following, though there may be some variations from case to case:

a) It should be issued only after proper Inquiry/investigation i.e. when the facts used are ascertained and allegations are prima facie made out;

b) It should be strictly in the format & manner prescribed under the GST Act and Rules made thereunder;

c) It should be clear on facts and legal provisions. Alleged violation of the provisions of law and other anomalies should be clearly brought out in the Show Cause Notice;

d) Copies of the documents to be submitted or compliance to be made by the notice should be specifically mentioned In the SCN;

e) Possibility of additional evidence being needed or additional anomalies being detected should be kept open during the pendency of the proceeding and should also be mentioned in the notice itself;

f) Copies of the details giving reasons for SCN should be attached with the SCN and Proper Officer should not depend only on the drop down menus on the GSTIN portal;

g) The prima facie amount due, if any needs to be quantified and should be manifestly specified in the notice itself. Possibility of raising additional demand should be kept and mentioned in notice itself;

h) It should be clearly mentioned that whether the notice(s) wishes to be heard in person, apart from filing a written representation, in the matter;

i) The authority to which the SCN is answerable should be specifically stated along with Ward, designation, e-mail id etc.;

j) All SCNs should be disposed off within statutory timelines.

All the Proper Officers shall strictly, and without fall, adhere to the above guidelines while issuing SCNs. Zonal Incharges are also requested to ensure & monitor the compliance of the above guidelines.

This issues with approval of the Commissioner (T&T).

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