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Tax Disputes

GST Disputes & Appeals

The reply to a show-cause notice is often the most important document in a GST dispute.

The Problem

What Is at Stake

A show-cause notice sets the record that every later appeal depends on. The facts admitted, the documents produced and the legal grounds raised in the reply define what the adjudicating officer must decide, and what can later be argued before the appellate authority and the GST Appellate Tribunal. A reply prepared under deadline pressure, without reconciliations or supporting documents, can weaken a position that was strong on the merits.

GST disputes commonly arise from input tax credit mismatches, classification and valuation positions, differences between returns, and data-driven scrutiny that flags variances automatically. Many begin with a scrutiny notice or an intimation before a formal show-cause notice is issued, and the response at that stage matters too.

KP Juris analyses notices and orders, builds the documentary record and prepares replies, appeals and stay applications, working with chartered accountants and authorised representatives who appear before the authorities.

Scope

Matters We Advise On

  1. Scrutiny notices and pre-notice intimations (DRC-01A)
  2. Show-cause notices and replies
  3. Preparation for adjudication and personal hearings
  4. Input tax credit denials, including supplier default
  5. Classification and valuation disputes
  6. Demand, recovery and attachment
  7. Appeals to the appellate authority
  8. Appeals to the GST Appellate Tribunal (GSTAT)
  9. Refund rejections

Approach

How We Approach It

  1. 01

    Fix the timeline

    Identify the section invoked, the tax period and the applicable limitation, and confirm every response and appeal deadline.

  2. 02

    Reconcile the data

    Reconcile returns, books, e-invoices and supplier filings against the department's figures to find the real difference.

  3. 03

    Draft the reply

    Answer each allegation on facts and law, attach the supporting evidence, and raise limitation and jurisdiction points expressly.

  4. 04

    Carry it forward

    If the order is adverse, prepare the appeal, calculate the pre-deposit and plan for the stay of recovery on the balance.

Key Considerations

What to Know Before You Act

Sections 73, 74 and 74A

Demands for periods up to 2023–24 are raised under section 73 (no fraud or suppression) or section 74 (fraud or wilful suppression), with different time limits and penalties. From 2024–25, section 74A applies. Check which governs before replying.

Limitation

Each provision sets an outer limit for the notice and the order, counted from the due date of the annual return for the year concerned. Notices or orders outside those limits can be challenged.

Pre-deposit for appeals

An appeal to the appellate authority requires a pre-deposit of a percentage of the disputed tax, and a further deposit applies to an appeal to the Tribunal. Recovery of the balance is stayed once the pre-deposit is paid.

Build the record early

Documents not produced before the adjudicating officer can be admitted on appeal only in limited circumstances. Produce them with the reply.

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