GST Demand & SCN Handling Services

Expert Handling of GST Show Cause Notices and Tax Demand Management

A GST Show Cause Notice (SCN) is the formal communication from the GST department alleging underpayment of tax, wrongful ITC claims, or other contraventions — asking the taxpayer to show cause why the demand should not be confirmed. The SCN sets the entire parameters of adjudication — matters not addressed in the reply are difficult to raise later. Nainit Savla & Associates provides expert GST SCN analysis and reply drafting, ensuring the strongest possible defence from the very first response.

Our Services

SCN Receipt & Analysis

Immediate detailed analysis of the SCN on receipt — understanding the allegations, computing the proposed demand, identifying time-bar issues and procedural defects, and formulating the defence strategy before the reply deadline.

SCN Reply Drafting

Comprehensive reply to the SCN addressing each allegation with factual explanations, reconciliation data, ITC eligibility arguments, procedural objections, and legal precedents from GSTAT and High Courts.

Voluntary Payment Advisory

Calculating the reduced penalty benefit available under Sections 73(5) and 74(5) if tax is paid before the reply or before SCN issuance — advising on whether voluntary payment is economically preferable to contesting the demand.

Supporting Documentation

Compiling all supporting documents for the SCN reply — reconciliation statements, purchase registers, GSTR-2B vs books comparison, e-invoices, and any other evidence establishing the taxpayer's correct position.

Personal Hearing Attendance

Expert representation at the personal hearing before the adjudicating officer — presenting arguments clearly, responding to the officer's queries, and filing additional submissions as required by the officer.

Post-SCN Strategy

Clear advisory on next steps after the assessment order — whether to pay and close, appeal to the GST Appellate Authority, pre-deposit requirements, and applications for stay of demand during appeal.

Who We Help

Businesses receiving GST show cause notices under Sections 73 or 74
Companies with high-value ITC demands being challenged by the department
Taxpayers with GSTR-1 vs GSTR-3B mismatches resulting in a formal SCN
Businesses under SCN for alleged fraud or suppression under Section 74
Any GST registrant needing expert support for show cause notice response

Why Choose Nainit Savla & Associates?

At Nainit Savla & Associates, our GST SCN handling team combines statutory expertise with strong precedent research and precise drafting. We review every SCN immediately on receipt, identify all available defences, and prepare responses that give our clients the strongest possible position at every stage of the proceedings.

Frequently Asked Questions

How many days do I have to respond to a GST show cause notice? +

The taxpayer must file a reply to the SCN within 30 days of its service (for both Section 73 and Section 74 notices). The proper officer may extend this period on written request. It is important to request an extension before the original deadline — non-response can lead to an ex-parte assessment order being passed without the taxpayer being given a personal hearing, which is a significantly worse outcome than filing a timely response.

Can I challenge the SCN itself if it has procedural defects? +

Yes. If the SCN suffers from procedural defects — such as: (1) being issued without following the DRC-01A pre-notice consultation process; (2) being issued by an officer without jurisdiction; (3) being issued beyond the limitation period; (4) not specifying the reasons for invoking Section 74 instead of Section 73 — these defects can be raised as preliminary objections in the SCN reply. A successful procedural challenge can lead to the SCN being quashed, dropping the entire demand.

What happens if the tax demand in the SCN is partly correct? +

In many cases, the SCN demand may be correct in part but incorrect in part. In such situations, the reply should acknowledge and address the correct portion (with voluntary payment if economically sensible) while strongly contesting the incorrect portion with full factual and legal arguments. This approach demonstrates good faith to the adjudicating officer while protecting the taxpayer's position on the genuinely disputed issues — and often leads to a more favourable assessment order on the contested amounts.

Received a GST Show Cause Notice? Get Expert Help Immediately.

SCN analysis, reply drafting, voluntary payment advisory, and personal hearing representation — complete GST SCN handling.