What is Show cause notice under GST

Show cause notice Means


This post explains about Show cause notice under GST.

Show Cause Notice

Show cause notice means an order issued by a Court, Competent Authorities or an Organization asking an individual or a group of people to explain or to "show cause" in writing as to why the disciplinary action should not be taken against the individual or the group of people involved in certain incidents, misconduct, poor performance and wrongdoing.  Order to show cause is issued by the authority or the Management after reviewing the entire incident and if finds that the person accused or may involve in wrongdoing and it is also to give a fair chance of hearing him and his explanation towards his/her actions and so avoid disciplinary action. Below, we have described the several reasons a person may receive a show cause notice, including how to write and respond to this kind of notice or letter.

Within a legal context, the court can issue a show cause order that requires a party to present before the court for explanation why a certain course of action should not be initiated against that party. For example, if due procedure was not followed while filing a complaint, the court may issue a show cause order, to the investigating authority and lawyer regarding the same. The court will then conduct a show cause hearing, where the investigating authority and the lawyer will have to bring the proof and evidence and submit all facts and figure to explain the court that why the due course of action was not followed. If the lawyer fails to appear or if the explanation is weak the court may dismiss that case or issue the order to re-open the case and may ask for further investigation and appeal and bring that into the hearing.

Show Cause under GST:

Section 73 of CGST Act deals with issuance of show cause notice to assesses for

  1. Tax is unpaid/short paid or,
  2. Refund is wrongly made or,
  3. Input tax credit has been wrongly availed/utilised

——for any reason, other than fraud etc. i.e., there is no motive to evade tax.

The proper officer (i.e., GST authorities) will serve a show cause notice on the taxpayer. They will be required to pay the amount due, along with interest and penalty.

Time Limit

The proper officer is obliged to issue the show cause notice 3 months before the time limit.

The maximum time limit for the order of payment is 3 years from the due date for filing of annual return for the year to which the amount relates.

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Format of Show Cause Notice under GST

Form GST ASMT - 14

Reference No: Date:




Tax Period -- F.Y. -------

Show Cause Notice for assessment under section 63

It has come to my notice that you/your company/firm, though liable to be registered

under section ------ of the Act, have/has failed to obtain registration and failed to discharge the

tax and other liabilities under the said Act as per the details given below:

Brief Facts –

Grounds –

Conclusion -



It has come to my notice that your registration has been cancelled under sub-section (2) of

section 29 with effect from ------ and that you are liable to pay tax for the above mentioned



Therefore, you are hereby directed to show cause as to why a tax liability along with

interest not be created against you for conducting business without registration despite being

liable for registration and why penalty should not be imposed for violation of the provisions of

the Act or the rules made thereunder.

In this connection, you are directed to appear before the undersigned on --------- (date) at

------- (time)







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