GST Portal Active New & Important Change in June 2024

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Under the Goods and Services Tax (GST) regime, a proper officer may issue a Show Cause Notice (SCN) to a taxpayer for various reasons, including unpaid or short-paid tax, erroneously refunded tax, or wrongly availed/utilized input tax credit. Along with the SCN, a summary is provided in Form DRC-01, which contains the following details:

Contents of Form DRC-01:

Details of the Taxpayer: Includes GSTIN, address, and other identification details of the person to whom the SCN is issued.
Tax Period and Financial Year: Specifies the period and fiscal year to which the notice pertains.
Section Reference and SCN Reference Number: Provides the relevant sections of the GST Act and a unique reference number for the SCN.
Brief Facts of the Case: Outlines the key facts and circumstances leading to the issuance of the SCN.
Grounds: Lists the reasons and legal grounds for the notice.
Taxes and Other Dues: Details the taxes, interest, penalties, and other dues that are being demanded.

Time Limits for Issuing SCN/Summary (DRC-01):

Bona-fide Defaulter: The SCN must be issued within 2 years and 9 months from the due date of filing the annual return for the relevant financial year.
Mala-fide Defaulter (Fraud, Suppression, etc.): The SCN must be issued within 4 years and 6 months from the due date of filing the annual return for the relevant financial year.
No Time Limit: If tax has not been paid but collected by the recipient, the SCN can be issued at any time with no time limit.

New Change on GST Portal: Requesting a Personal Hearing

The GSTN has introduced a new feature on the GST Portal that allows taxpayers to request a personal hearing when responding to a Show Cause Notice (SCN) in Form DRC-01. Here’s how it works:

Option to Select ‘Yes’ or ‘No’: Taxpayers can now choose ‘Yes’ or ‘No’ for a personal hearing while submitting their response to GST DRC-01. Previously, the system automatically defaulted to ‘No’ for personal hearing requests.

How to Request a Personal Hearing:

Receive SCN and Summary in Form DRC-01: Check the details provided in the notice.
Log into the GST Portal: Navigate to the appropriate section to respond to the SCN.
Select Hearing Option: Choose ‘Yes’ if you wish to request a personal hearing.
Submit Response: Provide the necessary details and submit your reply.

This new feature aims to improve the communication process between taxpayers and the GST authorities, ensuring that taxpayers have the opportunity to present their case in person if desired.