The Assam GST Department released Instruction No. 13/2023-GST on December 26, 2023. This instruction is about the notices that were sent out using IIT Big Data Software.
Notice No. CT/GST-40/2020/108 is about the IIT Big Data Software that the Assam Tax Department has bought to make their work easier. This software can automatically create notices (in DRC-01) based on various factors.
Some taxpayers have reported that they have received these notices for the financial years 2017-18 and 2018-19, even though they have already been assessed for things like scrutiny, audit, and advisory/summons. Because there were many practical issues when GST was first implemented, it’s recommended to stop the proceedings. The following instructions should be kept in mind.
- If an audit has already been done, any additional notices sent out using the IIT Big Data software should be cancelled.
- If a return scrutiny has been completed and new notices have been issued using the IIT Big Data software, these should be cancelled for the parts that were already covered in the previous notice.
- If advisory/summons proceedings have been completed and new notices have been issued using the IIT Big Data software, these should be cancelled for the parts that were already covered in the advisory/summons proceeding.
- If proceedings under section 74 have started or are ongoing, then any notice issued using the IIT Big Data Software should be cancelled, provided that the relevant officials have been informed to include such parts in their proceedings.
- If a voluntary payment has been made in GST DRC-03 or if DRC-07 has been issued, then any notices issued using the IIT Big Data software should be cancelled after proper verification.
- If only invoices were issued without any goods being moved, then proceedings should be done under section 122 and any notice issued using the IIT Big Data software should be cancelled.
- If a taxpayer is involved in the business of certain goods or services and the system has issued notices using automatically generated HSN/SAC Codes, the taxpayer may be eligible for credit. For instance, a taxpayer in the vehicle trading business can get credit on purchasing a vehicle. In such situations, the Proper Officers should check the relevant facts and records and make decisions on a case-by-case basis, following the law.
- If ITC reversals under Rule 42/43 apply to non-business transactions or exempt supplies, then these need to be verified as per the issued notice. Also, when exempted supplies are bought and sold, ITC reduction under rule 42/43 should be done based on the actual turnover as per the filed return, and the verification process should be followed. Taxpayers should not be asked for any clarification unless there are exceptional circumstances.
In cases where removal of notice is not required, having regard to the above criteria, notice will be given appropriately. The taxpayer should be given an opportunity of being heard and the proceedings should be completed in a time-bound manner.
The above instructions will be strictly followed. In cases where withdrawal notice is required, no written arguments are called for nor is the taxpayer called for any personal hearing. In such cases, the proper officer will close the proceedings based on the facts and materials of each case after recording the reasons. Wherever applicable, the taxpayer should be informed about the quitting proceedings without fail.
Important: A Proper Example of Respond DRC-01 Notice to GST Officer
All proper authorities must strictly follow the legal provisions and relevant guidelines/circulars in this respect. Strict action will be taken in case of non-compliance. Apart from this, it needs to be ensured that no taxpayer faces any trouble and that the department receives the appropriate tax.
