Explanation
Show-cause notice — demand of GST, interest and penalty
Trigger: Tax officer raises a demand for unpaid/short-paid GST, wrong refund, or incorrectly availed ITC. Section 73 applies to non-fraud cases; Section 74 applies where fraud/suppression is alleged.
Reply required within: 30 days.
Consequence if ignored: The officer passes an ex-parte order confirming the demand with interest and penalty (25% for §73, 100% for §74). The demand becomes recoverable immediately.
How to reply: File a detailed written reply on the GST portal within the given time. Attach supporting documents — invoices, reconciliation reports, credit notes. Attend the personal hearing. If the demand is correct, pay tax + interest + 25% penalty (§73) or 25%/50% reduced penalty (§74) before the order and the penalty may be waived.
If ignored
How to respond
File a detailed written reply on the GST portal within the given time. Attach supporting documents — invoices, reconciliation reports, credit notes. Attend the personal hearing. If the demand is correct, pay tax + interest + 25% penalty (§73) or 25%/50% reduced penalty (§74) before the order and the penalty may be waived.
Deadline
You have 30 days from the date of issue to respond. Do not ignore — non-response triggers automatic consequences.