GST Officials Can Consult with Assessee Before Show Cause Notice

Before providing the issuance the tax council will initiate the consultation of show cause notice to taxpayers of GST so as to make it a simpler resolution to the tax conflicts and reducing the number of actions.

The Central Board of Indirect Taxes and Customs (CBIC) has interpreted that the consultation with the taxpayers before providing the show cause notice (SCN) Check out the guide to file a GST REG 18 form online on the official portal. Also, we have mentioned the process of filing with provisions and time limit of the GST REG-18 form. Read more if the tax is more than Rs 50 lakh excluding the preventive/offense related SCNs, is important and will be furnished through SCN providing administrators.

The steps include tax authorities having the tasks with the taxpayers on the tax demand asked through them and the method to resolve it. The discussion method will happen in matters of adjudication of charges of duty/tax or resolving of CENVAT Credit by distinct heads.

For the matters that include duty/tax or recovery of CENVAT Credit exceeds Rs 50 lakh but less than Rs 2 crore the adjudicating authority in the matters will be Additional Commissioner/Joint Commissioner-level officers. Matters including duty/tax or improvement of CENVAT Credit more than Rs 2 crore are to be adjudicated by the Commissioner.

CBIC states that with the alterations in the financial restrictions of adjudication and to give clarification on this problem, it states that “pre-show-cause notice consultation with the assessee, prior to issuance of SCN in case of demands of duty is above Rs 50 lakh shall be done by the SCN-issuing authority”.