Appearing Before GST Authorities — Show Cause and Appeals Guide for CS 2026

CS as Authorized Representative Under GST

Under Section 116 of the Central Goods and Services Tax Act, 2017: a Company Secretary holding a Certificate of Practice (COP) from ICSI can appear as an authorized representative before any GST authority on behalf of the taxable person. This includes: (a) assessment proceedings, (b) show cause notice hearings, (c) first appellate proceedings (before the Appellate Authority), (d) revision proceedings, (e) advance ruling applications, (f) refund applications, (g) any other proceeding under the CGST/SGST/IGST Acts. The authorization is given by the taxable person through a written authorization letter — no specific form is prescribed.

Types of GST Proceedings

1. Assessment (Section 61-64): (a) Scrutiny assessment — the officer examines the returns and seeks clarification. (b) Best judgment assessment — when the person fails to file returns. (c) Summary assessment — in cases requiring protection of revenue interest.

2. Show Cause Notice (Section 73-74): The most common adversarial proceeding. (a) Section 73: for cases NOT involving fraud/suppression — SCN issued within 2 years + 9 months (for FY ending March 2024: SCN deadline June 30, 2027). (b) Section 74: for fraud/suppression/willful misstatement — SCN issued within 4 years + 6 months. The SCN demands: tax short-paid/not-paid + interest + penalty.

3. Appeals: (a) First Appeal: to the Appellate Authority (Joint/Additional Commissioner) within 3 months of the order + 1 month condonable (Section 107). Pre-deposit: 10% of disputed tax. (b) Second Appeal: to the GST Appellate Tribunal (GSTAT) within 3 months + 1 month condonable (Section 112). Pre-deposit: 20% of disputed tax (additional 10% over first appeal). (c) High Court: appeal on substantial questions of law (Section 117). (d) Supreme Court: SLP.

Drafting SCN Reply Under GST

Structure: (1) Reference: SCN number, date, period, amount demanded. (2) Preliminary objections: Limitation (Section 73/74 time limits), jurisdiction, procedural defects. (3) Factual response: Para-wise reply to each allegation — deny with evidence or explain. (4) Legal arguments: Cite CGST/SGST provisions, rules, circulars, advance rulings, and court decisions supporting the position. (5) Classification/valuation disputes: If the SCN is about wrong classification or undervaluation — present the correct classification with supporting material (HSN explanatory notes, customs rulings, trade parlance). (6) Input Tax Credit disputes: If ITC is denied — demonstrate compliance with Section 16 conditions (tax invoice, receipt of goods/services, payment within 180 days, supplier's return filing). (7) Prayer: Drop the proceedings, or alternatively reduce the demand. Request personal hearing.

First Appeal Procedure — Section 107

Step 1: File appeal in Form GST APL-01 on the GST portal within 3 months of the order (+ 1 month condonable). Step 2: Pay pre-deposit of 10% of the disputed tax (mandatory — non-payment renders the appeal invalid). Step 3: File grounds of appeal, statement of facts, and supporting documents. Step 4: The Appellate Authority issues notice, hears both parties, and passes an order — within 1 year (or extended period). Step 5: If aggrieved: appeal to GSTAT (Section 112) with additional 10% pre-deposit.

Key GST Issues for CS Practice

(a) ITC eligibility: Disputes over blocked credits (Section 17(5)), time limits for claiming ITC, conditions for ITC (Section 16), ITC on capital goods. (b) Place of supply: Cross-state transactions — determining whether IGST or CGST+SGST applies. (c) Valuation: Section 15 — inclusion of subsidies, discounts, taxes in taxable value. (d) Reverse charge: Section 9(3)/(4) — applicability, compliance, and ITC on reverse charge. (e) E-invoicing and e-way bills: Non-compliance penalties and remedies. (f) Refund claims: Export refunds, inverted duty structure refunds — Section 54.

Practical Tips for GST Hearings

(a) Prepare a reconciliation: Reconcile the SCN demand with the company's records — identify discrepancies and explain each. (b) Carry all relevant returns: GSTR-1, GSTR-3B, GSTR-9 for the relevant period. (c) Cite circulars: CBIC circulars and trade notices carry significant weight before GST authorities — cite relevant clarifications. (d) Advance rulings: If an advance ruling supports your position — cite it (though not binding on the officer, it is persuasive). (e) Request adjournment: If you need more time — file a written request before the hearing date. Don't simply not appear.