GST Department issues Standard Operating Procedure for issuance of Show Cause Notice

The Delhi Goods and Services Tax (DGST) Department has issued a Standard Operating Procedure (SOP) for issuance of Show Cause Notice (SCN) in a time-bound manner.

Section 73 of DGST Act, 2017 provides that the adjudication order will be issued within three years from the due date of filing of annual return for the year to which the discrepancy is noticed. The section also provides that the show cause notices is required to be issued at least three months prior to the time limit.

Similarly Section 74 of DGST Act, 2017 provides that in cases of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized, for reasons of fraud or willful misstatement or suppression of facts, the adjudication order will be issued within five years from the due date of filing of annual return for the year to which the discrepancy is noticed. Further, the show cause notice is required to be issued at least six months prior to the time.

The SOP has instructed the Department to issue SCN where ever necessary because if they are issued late, then there will be little time to issue orders.

Further, the SOP also instructed all the zonal-in-charges to take stock of the cases which warrant issuance of SCNs and take appropriate action to ensure completion of the proceedings in a time-bound manner.

Click on the below-mentioned link to download the Policy.