What Should You Do When You Receive a GST Notice?

Recently, the Central Board of Indirect Taxes and Customs (CBIC) cautioned taxpayers about fraudulent summons and notices. To address such issues and enhance transparency, the CBIC has implemented the Document Identification Number (DIN) system, which is pivotal in validating the authenticity of GST-related communications.

Here’s what taxpayers need to know and do when they receive a GST notice:

1. Verify the Authenticity of the Notice

The DIN system, introduced on November 8, 2019, ensures that all official communications are traceable and verifiable. Taxpayers can confirm the authenticity of a notice using the ‘VERIFY CBIC-DIN’ tool:

• Visit the CBIC verification portal: Verify CBIC-DIN.
• Enter the DIN mentioned in the notice.
• Check for validation, which will display the issuing office and the date of generation.

If the DIN is invalid, report the communication as potentially fraudulent.

How to reply scrutiny notice with Format?

2. Understand the Importance of DIN

The DIN is a 20-character identifier in the format CBIC-YYYYMMZCDRNNNNNN, where:

• YYYY represents the year.
• MM represents the month.
• ZCDR indicates the Zone-Commissionerate-Division-Range code.
• NNNNNN is a unique system-generated random number.

All communications such as search authorizations, summons, arrest memos, inspection notices, and letters must prominently display the DIN.

3. Identify Exceptions and Irregularities

In rare circumstances, notices may be issued without a DIN due to:

• Technical difficulties in generating the DIN.
• Urgent situations requiring immediate action outside the office.

Such communications must:

• Clearly mention that they are issued without a DIN.
• Be regularized within 15 working days with appropriate approvals and a generated DIN.

Any notice not meeting these criteria is deemed invalid and treated as never issued.

4. Steps to Take if the Notice Is Fake

If you suspect the notice is fraudulent:

• Verify its DIN using the CBIC portal.
• Report the issue immediately to the Directorate General of GST Intelligence (DGGI) or the local CGST office.
• Provide details and evidence, such as a copy of the fake communication.

Swift action can help authorities apprehend fraudsters and protect other taxpayers.

5. Seek Professional Guidance

Responding to GST notices, whether genuine or fraudulent, can be complex. Consulting a tax professional ensures appropriate handling and compliance with legal obligations.

Conclusion

The DIN system exemplifies CBIC’s commitment to transparency and taxpayer protection. Taxpayers must remain vigilant, verify communications, and report irregularities. By understanding these measures, you can safeguard yourself against fraudulent notices and ensure compliance with GST regulations.

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