Sections 61, 73, 74, 74A, 107 & 112 of Central Goods & Services Tax (CGST) Act, 2017 read with Rules 98 to 116 of CGST Rules

GST Scrutiny, SCN Defense & GSTAT Appeals

Comprehensive indirect tax controversy management covering Section 61 return scrutiny (ASMT-10), Show Cause Notice defense under Sections 73, 74, and 74A (DRC-01), Section 107 First Appeals before Commissioner (Appeals), and appellate advocacy before the Goods and Services Tax Appellate Tribunal (GSTAT).

CA Due Diligence

Official Portal Filing

State Stamp Advisory

GST Scrutiny, SCN Defense & GSTAT Appeals Statutory Advisory

Turnkey Statutory Filing

MCA & Tax Practice

Official Govt of India AuthorityCBIC & GSTAT, Ministry of Finance, Govt of India

Goods and Services Tax Official Common Portal & GSTAT

The official Government of India portal for viewing departmental notices (ASMT-10, DRC-01A, DRC-01), submitting electronic written replies (Form GST DRC-06), filing Form GST APL-01 First Appeals, and tracking GSTAT Tribunal bench proceedings.

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STATUTORY OVERVIEW

Indirect Tax Controversy Management & Appellate Remedies

With the intensification of automated data analytics and systematic departmental scrutiny under the GST regime, businesses frequently face inquiries regarding turnover discrepancies, classification challenges, and input tax credit disallowances. Our indirect tax controversy practice provides rigorous legal drafting, statutory defense, and representation across every stage of the dispute lifecycle—from initial scrutiny intimations to proceedings before the First Appellate Authority and the Goods and Services Tax Appellate Tribunal (GSTAT).

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Sections 61, 73, 74, 74A, 107 & 112 of Central Goods & Services Tax (CGST) Act, 2017 read with Rules 98 to 116 of CGST Rules

Regulatory Authority

Central Board of Indirect Taxes and Customs (CBIC), Directorate General of GST Intelligence (DGGI) & Goods & Services Tax Appellate Tribunal (GSTAT), Ministry of Finance, Govt of India

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓Authorized Signatory PAN Card, Aadhaar Card, and active portal login credentials
✓Digital Signature Certificate (Class 3 DSC) for corporate directors and authorized partners
✓Vakalatnama / Letter of Authorization on corporate letterhead authorizing CA representation

2. Registered Office & Premises Proof

✓Proof of Registered Office corresponding to jurisdictional tax commissionerate records
✓Active email address and mobile number registered for receiving statutory notices under Section 169

3. Specific Statutory Declarations & Enclosures

•Complete copy of the Statutory Notice received: Form GST ASMT-10, DRC-01A, DRC-01, or Section 70 Summons with all relied-upon annexures
•Corresponding Adjudication Order in Form GST DRC-07 with computation of disputed tax, interest, and penalties
•Audited Balance Sheets, Tax Audit Reports (Form 3CD), and GSTR-9C reconciliation statements for the relevant years
•Relevant outward tax invoices, purchase vouchers, electronic way bills, and dynamic GSTR-2B credit ledgers
•Bank statements establishing actual payment to suppliers within 180 days to rebut Rule 37 allegations
•Electronic payment challan proving deposit of mandatory 10% statutory pre-deposit for filing Form GST APL-01 appeal

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Days 1 - 3

Notice Analysis & Jurisdictional Challenge

Analyzing SCN allegations, checking limitation timeframes under Section 73/74/74A, verifying officer jurisdiction, and identifying procedural violations under Natural Justice principles.

02Days 4 - 10

Evidentiary Compilation & Ledger Sync

Collating tax invoices, bank payment proofs, e-way bill movement logs, CA certificates, and compiling comprehensive indexed evidentiary paper books.

03Days 11 - 20

Formal Written Defense & Personal Hearing

Filing detailed electronic written submissions in Form GST DRC-06 citing binding High Court and Supreme Court precedents, and representing the client during personal hearings.

04Post-Adjudication

Appellate Action before CIT(A) & GSTAT

Drafting Form GST APL-01 appeal within 90 days of an adverse DRC-07 order with 10% pre-deposit, followed by second appeal representation before GSTAT benches in Form GST APL-05.

Return Scrutiny (Section 61) & Automated Portal Notices

Practice Scope & Statutory Guidance

Departmental scrutiny begins under Section 61 with Form GST ASMT-10 detailing discrepancies identified across returns. Furthermore, automated enforcement under Rule 88C (Form DRC-01B for GSTR-1 vs GSTR-3B tax differences) and Rule 88D (Form DRC-01C for GSTR-2B vs GSTR-3B ITC differences) mandates prompt compliance within 7 days. We conduct immediate forensic reviews, collate transactional evidence, and draft precise technical replies in Form GST ASMT-11 or portal response windows to secure closure orders in Form GST ASMT-12.

Show Cause Notice (SCN) Defense: Sections 73, 74 & 74A

Practice Scope & Statutory Guidance

Where issues remain unresolved, adjudicating authorities issue Form GST DRC-01 Show Cause Notices. Following amendments introduced via the Finance Act, 2024, proceedings for financial year 2024-25 onward are governed by the unified Section 74A, while prior periods follow Section 73 (non-fraud) or Section 74 (fraud/wilful misstatement). We formulate detailed legal submissions on facts, limitation periods, invocation of extended periods, valuation principles, and judicial precedents from High Courts and the Supreme Court.

Appeals before First Appellate Authority & GSTAT

Practice Scope & Statutory Guidance

Against adverse adjudication orders passed under Section 73, 74, or 74A (Form GST DRC-07), taxpayers can file statutory appeals under Section 107 in Form GST APL-01 before the Appellate Authority within 90 days, accompanied by statutory pre-deposit. Furthermore, with the operationalization of the Goods and Services Tax Appellate Tribunal (GSTAT) under Section 112, we prepare appeal petitions in Form GST APL-05, formulate statements of facts and grounds of appeal, and represent clients during hearings.

STATUTORY MATRIX

Statutory Provisions & Regulatory Comparative Matrix

Comparative analysis of governing sections under the new framework alongside legacy statutory references.

Litigation Stage / Departmental Proceeding	Governing Statutory Section (CGST Act, 2017)	Statutory Timeframe & Defense Protocol
Return Scrutiny Notice	Section 61 read with Rule 99 (Form GST ASMT-10)	Must respond within 30 days in Form GST ASMT-11. Acceptance by officer results in Form GST ASMT-12 closure.
Pre-SCN Consultation Intimation	Rule 142(1A) (Form GST DRC-01A Part A)	Provides opportunity to explain discrepancies or pay tax with concessional penalty before formal SCN is issued.
Show Cause Notice (Non-Fraud Cases)	Section 73 of CGST Act, 2017 (Form GST DRC-01)	Must be issued at least 3 months prior to 3-year limitation. Penalty limited to 10% of tax or ₹10,000 (whichever is higher).
Show Cause Notice (Fraud / Wilful Misstatement)	Section 74 of CGST Act, 2017 (Form GST DRC-01)	Extended 5-year limitation period. Mandatory 100% penalty on adjudicated tax demand.
Unified SCN Regime (FY 2024-25 Onwards)	Section 74A of CGST Act (Finance Act, 2024)	Common limitation period of 42 months for notice issuance across both fraud and non-fraud matters.
First Appeal before Commissioner (Appeals)	Section 107 of CGST Act, 2017 (Form GST APL-01)	Filed within 3 months (extendable by 1 month) with 10% pre-deposit (capped at ₹25 Crores CGST).
Second Appeal before GSTAT Tribunal	Section 112 of CGST Act, 2017 (Form GST APL-05)	Filed within 3 months of appellate order upon payment of additional 20% pre-deposit (capped at ₹50 Crores CGST).

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

Form GST DRC-06 Electronic ReplyWithin 30 days of notice service

SCN Response Statutory Due Date

Failure to reply leads to ex-parte adjudication orders with maximum mandatory penalties under Section 73/74/74A.

Form GST APL-01 with GroundsWithin 3 months from communication of order

First Appeal Filing (Section 107)

E-filing Statement of Facts and Grounds of Appeal; accompanied by mandatory 10% pre-deposit of disputed tax.

Section 107(7) Statutory StayImmediate upon Pre-Deposit payment

Automatic Stay of Recovery (Section 107(7))

Payment of the 10% pre-deposit operates as a complete statutory stay against departmental recovery proceedings for the remaining 90% demand.

Form GST APL-05 before TribunalWithin 3 months of appellate order

Second Appeal before GSTAT (Section 112)

Approaching the Goods and Services Tax Appellate Tribunal upon payment of an additional 20% pre-deposit of disputed tax.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding GST Scrutiny, SCN Defense & GSTAT Appeals.

What is the statutory pre-deposit requirement for filing a GST First Appeal under Section 107?

Under Section 107(6) of the CGST Act, to file an appeal before the First Appellate Authority, the taxpayer must pay: (1) full admitted tax, interest, fine, and penalty arising from the impugned order, and (2) a sum equal to 10% of the remaining amount of disputed tax (subject to a maximum statutory cap of ₹25 Crores CGST and ₹25 Crores SGST). Upon payment, recovery of the remaining 90% demand is automatically stayed by law.

What is the new Section 74A introduced in the GST Act?

Section 74A was introduced by the Finance Act, 2024 to establish a unified statutory limitation regime for issuing Show Cause Notices and determining tax demands for financial year 2024-25 onwards. It eliminates the previous disparity between Section 73 (3 years limitation) and Section 74 (5 years limitation), providing a uniform limitation of 42 months from the due date of the annual return for issuing notices across both fraud and non-fraud cases.

What should I do if I receive a Section 70 Summons from GST Intelligence (DGGI)?

A summons issued under Section 70 of the CGST Act is a judicial proceeding. The summoned person is legally bound to attend and state the truth. You should immediately engage your Chartered Accountant or legal counsel to review the transaction records, collate requested books, ensure statements are accurately recorded, and invoke your statutory rights against coercion.

Can the department attach my bank account during ongoing audit or scrutiny proceedings?

Under Section 83 of the CGST Act, the Commissioner may order provisional attachment of any property, including bank accounts, only if proceedings are pending under specified sections (such as Section 62, 63, 64, 67, 73, or 74) and if the Commissioner forms an opinion that it is necessary to protect government revenue. The Supreme Court has ruled that provisional attachment is an extraordinary power that cannot be exercised routinely or without tangible evidence.

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

In strict conformity with ICAI Council Guidelines No. 1-CA(7)/06/2004, professional engagements for GST Scrutiny, SCN Defense & GSTAT Appeals are accepted following formal conflict verification and statutory documentation. Contact our registered practice offices for procedural guidance.

Contact Practice Office +91 99140-14949