GST adjudication is the formal legal process through which the GST department settles tax disputes. It usually begins with a Show-Cause Notice (SCN) issued under Section 73 or 74 for non-payment, short payment, or wrongful availment of Input Tax Credit (ITC).
Once a SCN is served, the taxpayer is expected to reply in writing within the specified time frame, generally 30 days. The reply must address all allegations and provide documentary evidence to counter the department’s claims. It’s crucial to be accurate and persuasive because this reply forms the foundation of your defense.
The adjudication authority then conducts a personal hearing where your GST consultant or legal representative can argue your case. The officer may ask for clarifications or additional documents. Following this, the officer issues a final adjudication order.
The order will either confirm the tax liability, impose penalties, or drop the case entirely based on the evidence presented. If the outcome is unfavorable, the taxpayer can challenge it by filing an appeal within three months.
Professional representation during adjudication increases the chance of a favorable decision and reduces the risk of prolonged litigation. Reach out to our team to manage your SCN effectively.
