To,                                                                                                                                            Date. ….-….-20.. .

The Assistant Commissioner (ST),

……………………………………………………

……………………………………………………

……………………………………………………

Respected Sir,

Sub:- Show Cause notice U/s 73 for Tax Period April-20…. to March-20…, dt….-….-202… reply-Reg.

Ref :- Show Cause notice reference DIN: GST…………………………………………………….., dt…..-….-20….

With reference to the above show cause notice, we would object on the proposal of tax Rs………………….. and would like to present the explanations as below.

1) Non-payment of GST on differential turnovers: Turnover details as per the Show cause Notice

We inform your good self that Turnover as per the Profit & Loss Account for the FY 20…..-…… is Rs……………………… only, Turnover proposed in the show cause notice as difference turnover between P&L and GSTR9-C Rs……………………. is GST Tax component on Sales, copy of the P&L Account enclosed for your ready reference. Hence there is no turnover difference between P&L and GSTR-9C. We therefore request your good self to drop the proposal of Tax Rs……………………………. (@……….% on Rs………………..)

2) Tax Period: 20….-…. (from 01-04-20…. to 31-03-20….)

1. Excess claim of Input Tax – GSTR 2A vs GSTR 3B (PAID THROUGH ITC) :

1. IGST Rs……………………..:

We inform your good self that IGST on import of goods for the FY 20….-…. Rs…………………………………. reported in GSTR-3B monthly Returns under all other ITC column 4(A)(5) instead of Table No.4(A)(1)., We enclose herewith the statement of IGST availed on import of goods for your ready reference. We request your good self to consider the above factual submissions and drop the proposal of Rs…………………………………., remaining difference IGST Input Tax of Rs……………………… we are agreeing the same and we will pay IGST liability Rs……………………………

1. CGST Rs…………………….. & SGST Rs………………….:

We inform your good self that ITC as per the GSTR-2A SGST Rs…………………., CGST Rs…………………. and ITC claimed as per the GSTR-3B SGST Rs…………………. and CGST Rs…………………., thus there is difference of Rs…………………. under CGST and Rs…………………. under SGST. The difference is on account of non filing of the GSTR-1 or not reporting of invoice in GSTR-1 under B2B by our suppliers during the year 20….-20….

We further inform your good self that we have availed the GST ITC as per the original tax invoice and the total invoice amount including the GST charged in the invoice has been paid to the supplier within 180 days of the invoice date as per the terms of Sec 16(2) of CGST Act,2017. As such we can’t be made liable for the non filing of the GSTR-1 returns, since they are not in our control.

We further take support of the CBIC Circular No. 193/05/2023-GST, dt.17-07-2023,“Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A”.As per the Notification No.49/2019-CT dt.09-10-2019 Under rule 36(4) of Central Goods and Services Tax Rules, 2017 W.e.f. 09.10.2019, the said rule allowed availment of Input tax credit by a registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using the invoice furnishing facility (IFF), to the extent not exceeding 20 percent of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 of CGST Act in FORM GSTR-1 or using the IFF. The said limit was brought down to 10% w.e.f. 01.01.2020. Rule 36(4) of CGST Rules allowed additional credit to the tune of 20%, 10% as the case may be, during the period from ……-…….-20….. to …..-…..-20….., and ……-…….-20….. to …..-…..-20….. respectively.

We therefore request your good self to consider the above factual submissions as per the CBIC Circular No. 193/05/2023-GST, dt.17-07-2023 and drop the tax proposal.

3) Zero Rated Supply (Turnover) Rs………………………:

We inform your good self that Zero rated turnover of Rs…………………… is Export of goods without payment of IGST under LUT No. dt……-…..-20….. We enclosed herewith Export invoice copies and Export documents, we therefore request your good self to consider the factual submissions and drop the tax proposal.

4)Under declaration of Ineligible ITC: CGST Rs…………………. & SGST Rs………………………

ITC of Rs………………. (CGST Rs……………….. and SGST Rs…………………..) is related to Air Conditioner purchased and used in business premises. Air conditioner is being used in the course of business. Air Conditioner is attached to the wall, it can be removed and fitted elsewhere, it is not immovable property, thus restrictions u/s 17(5) should not apply.

We are agreeing the ineligible ITC of Rs………………. and we have paid Rs………………… vide DRC-03 ARN No……………………………, dated…..-….-20…. (CGST Rs…………… and SGST Rs…………….). We enclose herewith copy of DRC-03 for your ready reference and request your good self to consider the same and drop the tax proposal.

Please acknowledge receipt of the same

Thanking you,

For …………………………….

…………………………………..

Authorised Signatory

mobile – …………………………………

e-mail id ……………………………….