Demand & SCN Handling — GST Show Cause Notice 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 — and asking the taxpayer to show cause why the demand should not be confirmed. Receiving an SCN is a critical moment requiring a precise, well-documented, legally sound response. The SCN sets the parameters of the adjudication — matters not addressed in the SCN reply may be harder to raise at appeal. Caselaadvisors provides expert GST SCN analysis and reply drafting services, ensuring the strongest possible defence from the very first response.

What is a GST Show Cause Notice (SCN)?

A GST Show Cause Notice is issued under Sections 73 or 74 of the CGST Act when the tax authorities have determined (or suspect) that tax has been short-paid, ITC wrongly availed, or refund erroneously obtained. The SCN sets out the allegations, the amount of tax and penalty proposed, and gives the taxpayer an opportunity to respond. The taxpayer has 30 days (Section 73) or 30 days (Section 74) to file a reply, or may opt to pay the tax with reduced penalty before the reply. After the reply and personal hearing, the officer passes an adjudication/assessment order. An adverse order is appealable before the GST Appellate Authority.

SCN issued under Section 73 (non-fraud) or Section 74 (fraud/suppression)
30-day window to file detailed reply to the SCN
Option to pay tax with reduced penalty before replying to SCN
Personal hearing opportunity before order is passed
Demand confirmed in assessment order is appealable

Our Services

SCN Receipt & Analysis

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

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 reply or before SCN — advising on whether voluntary payment is economically preferable to contesting the demand.

Supporting Document Compilation

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

Personal Hearing Attendance

Representing the taxpayer at the personal hearing before the adjudicating officer — presenting arguments clearly, responding to officer queries, and submitting additional submissions as required.

Post-SCN Strategy

Advisory on next steps after the assessment order — payment to close, appeal to the GST Appellate Authority, pre-deposit requirements, and stay of demand during appeal.