A notice may point to a difference in turnover, input tax credit, tax paid or another issue. The right first step is to identify the exact point being raised. Before writing a legal argument, put the department’s figure, the return figure and the books figure on the same page. It becomes much easier to see whether the difference is real, a timing issue, an amendment or something else that needs explaining.
Download the complete notice
After logging in to the GST portal, use Services → User Services → View Notices and Orders. Open the case details and download the notice and attachments. The official portal guide describes this route. Read the annexures: the schedule of differences may contain more useful detail than the covering page or an email alert.
Make a one-page case summary
Record the notice reference, issuing authority, form or proceeding, relevant tax period, each proposed difference and the date by which a response is required. Use the date shown in the actual notice; different proceedings can follow different procedures. If three issues are raised, create three separate working rows rather than one combined explanation.
Collect records for the issue actually raised
For an ITC difference, start with purchase invoices, purchase ledger, relevant returns and portal data. For an outward-supply difference, examine the sales register, GSTR-1, GSTR-3B, credit notes and year-end adjustments. In a goods-movement matter, invoices, challans and transport records may matter. The point is to gather the evidence that answers this notice, not upload every file in the accounting folder.
Prepare a reconciliation the officer can follow
A useful working has four columns: department figure, reported return figure, books figure and explanation of the difference. Suppose the notice compares a year’s GSTR-1 with GSTR-3B. Build a month-wise bridge and identify amendments or credit notes in the period to which they relate. Do not simply state that the difference is incorrect; show the calculation and the source documents. This is an illustration, not a conclusion about any particular case.
Write the reply point by point
For each allegation, state the relevant facts, give the reconciliation, and point to a numbered annexure. Add a statutory provision, notification or case authority only after checking that it applies to the period and issue. Once the reply is filed, retain the final text, all annexures and the portal acknowledgement. If the response date is close or the facts are disputed, seek professional review early enough to prepare the working properly.
How Khatabahi can help
We can review the notice, map the points raised, prepare the reconciliation and discuss the response strategy with you. Share confidential records through an agreed secure channel after the initial conversation. Khatabahi Taxpert Solution Pvt Ltd, Office No. 1421, SVH83 Metro Street, Sector 83, Gurugram.