GST lawyers for notices, demands, appeals and investigations

Law

CGST Act 2017 and state GST Acts

Notice

Sections 73, 74, 74A

First appeal

3 months, 10% pre-deposit

Tribunal

GSTAT, further 10%

Section 73, 74 or 74A: which applies and why it matters

Section 74A creates a single time limit for both kinds of case, with the penalty depending on whether fraud, wilful misstatement or suppression is proved. Under Sections 73 and 74, many notices invoke Section 74 to get the longer period; if the department cannot show suppression with intent to evade, the notice can be challenged as time-barred. Before a formal notice, officers often issue a pre-notice intimation in Form DRC-01A, which is the cheapest stage at which to resolve a dispute.

Replying to a show cause notice

The reply is filed in Form DRC-06 on the GST portal, with a written submission and documents. A good reply:

• Checks limitation, jurisdiction, the DIN and whether the notice gives the basis of each figure.
• Reconciles the returns (GSTR-1, GSTR-3B, GSTR-2B and GSTR-9) with the books, line by line against the department's working.
• Supports facts with invoices, e-way bills, transport and payment records, and contracts.
• Cites the relevant circulars, advance rulings and judgments.
• Asks for a personal hearing, which Section 75(4) makes mandatory where an adverse decision is contemplated.

An order that ignores the reply, or is passed without a hearing, can be set aside in appeal or by a writ petition. The order is issued in Form DRC-07, and the demand appears in the electronic liability register.

Input tax credit denial

ITC disputes are the most common GST litigation. Credit can be denied for failure to meet the conditions in Section 16(2): possession of a tax invoice, receipt of goods or services, payment of tax by the supplier, and the credit appearing in GSTR-2B. Section 16(4) sets a time limit for claiming credit, with a relaxation in Section 16(5) for 2017-18 to 2020-21.

Where a supplier did not pay tax or later had registration cancelled, buyers face demands even though they paid in full. Courts have in several cases protected genuine buyers who could prove the transaction, though the law remains contested. In cases alleging fake or goods-less invoices, the evidence of physical movement of goods is decisive. Keep e-way bills, lorry receipts, weighbridge slips and payment proofs for every purchase.

Appeals, pre-deposit and the GST Appellate Tribunal

1. Appeal to the Appellate Authority under Section 107, within three months of the order (extendable by one month for sufficient cause). Pre-deposit: the full admitted amount plus 10% of the disputed tax, subject to a monetary cap. On payment, recovery of the balance is stayed.
2. Appeal to the GST Appellate Tribunal (GSTAT) under Section 112, with a further 10% of the tax in dispute, subject to a cap. The GSTAT, with a Principal Bench in New Delhi and state benches, began functioning in 2025, and transitional time limits were notified for appeals against orders passed before it started. Check the current timelines for your order.
3. High Court on substantial questions of law, and the Supreme Court thereafter.

Writ petitions under Article 226 are used where an order violates natural justice, is without jurisdiction or is time-barred, without waiting for the appeal route.

Summons, search and arrest

The DGGI and state enforcement wings can inspect premises and seize documents under Section 67, and summon any person under Section 70 to give evidence or produce documents. Summons proceedings are judicial proceedings, so false statements carry consequences. Attend with preparation, take copies of what you hand over, and get your statement read back before signing.

Arrest under Section 69 requires the Commissioner to have reasons to believe that a specified offence under Section 132 has been committed. Arrest is possible only where the tax involved exceeds ₹2 crore, and offences above ₹5 crore of tax evasion, fake invoicing or wrongful credit are non-bailable. In Radhika Agrawal v. Union of India (2025) the Supreme Court held that anticipatory bail is available in GST and customs cases, and stressed safeguards against coercion to pay tax during searches. We seek anticipatory bail where there is a real risk of arrest.

Mistakes in GST disputes

• Not responding to DRC-01A or ASMT-10, letting a minor mismatch become a formal demand.
• Paying under protest in DRC-03 without recording it as such.
• Missing the appeal deadline because the order was uploaded but not checked on the portal.
• Ignoring summons, which can lead to prosecution under the BNS for non-appearance.

Many disputes start with filing errors; see our GST return filing service to keep returns reconciled.

What a GST dispute costs

There is no fee for filing a reply on the portal, and appeal fees are built into the pre-deposit structure rather than charged separately in most cases. The real costs are the pre-deposit, interest that keeps running on unpaid tax, and professional fees. We quote stage-wise in writing: reply and hearing, first appeal, tribunal appeal, and any writ petition. Our fee depends on the number of issues, the period covered and the volume of reconciliation, never on a promised result.

Documents you need

Bring the notice or order and the records for the period it covers.

• Show cause notice, DRC-01A, ASMT-10 or order with DIN
• GSTR-1, GSTR-3B, GSTR-2B and GSTR-9 for the period
• Purchase and sales registers and ledger extracts
• Invoices, e-way bills and transport documents for disputed transactions
• Payment proofs to suppliers
• Earlier replies, hearing records and payments in DRC-03
• Summons or panchnama, if there has been an inspection

How we handle it for you

1. Diagnose the notice

   We check the section, limitation, jurisdiction and the department's calculation.

2. Reconcile the data

   We reconcile returns with books and identify what is genuinely payable.

3. Reply and argue

   We file the DRC-06 reply and represent you at the personal hearing.

4. Appeal or writ

   For an adverse order we file the appeal with pre-deposit, or a writ where the order is without jurisdiction.

5. Protect in investigations

   We prepare clients for summons and seek court protection where arrest is threatened.

Why clients choose ProudLegal

Frequently asked questions