Show cause notice u/s 73 (non-fraud): how to reply
Audit/scrutiny findings, FY ≤ 2023-24, no allegation of fraud/wilful misstatement
- Section
- 73
- Form names
- DRC-01
- Time to reply
- As specified in the notice. Paying tax and interest within 30 days of issue ends the notice without penalty (s.73(8))
- Reply goes on
- FORM GST DRC-06: Reply to show cause notice
What the notice is
Audit/scrutiny findings, FY ≤ 2023-24, no allegation of fraud/wilful misstatement
Filed through GST portal: Services > User Services > View Notices & Orders.
Time limit to reply
As specified in the notice. Paying tax and interest within 30 days of issue ends the notice without penalty (s.73(8)). Set by the statute or rules; counted from service.
- Adjournment is for the officer (s.75(5)); not computed here.
- Order time limits for FY 2017-18 to FY 2023-24 were extended by notifications under s.168A and by the Finance (No. 2) Act 2024; those dates are not encoded here.
- Order within 3 years from the due date of the annual return for the financial year (s.73(10)); the notice must issue at least 3 months before that date (s.73(2)).
Unverified: This is to be confirmed against the notified text.
Not confirmed
- Extended limitation dates for FY 2017-18 to FY 2023-24 (notifications under s.168A and the Finance (No. 2) Act 2024). No date is computed for FY 2019-20 and earlier; for FY 2020-21 to FY 2023-24 only the unextended statutory date is shown.
- Annual return due dates other than the 31 December default of s.44(1) are not encoded; supply the due date if it was extended.
Basis: CGST Act 2017, s.73; CGST Rules 2017, rule 142; CGST Act 2017, s.44 (annual return due 31 December). Rule last reviewed 2026-10-02.
Prescribed reply form
FORM GST DRC-06: Reply to show cause notice, filed through GST portal: Services > User Services > View Notices & Orders.
Unverified: The field list of this form is to be confirmed against the notified text.
What the reply must include
- limitation objection under s.73(10)
- ITC/turnover reconciliation table for the 2A-3B or 3B-1 mismatch alleged
- Circular 183/15/2022-GST and Circular 193/05/2023-GST where the demand is a 2A/3B or 3B/1 mismatch
- express request for the s.75(4) personal hearing
- request for documents relied on in the SCN but not supplied
Reply outline
Open with preliminary objections: limitation under s.73(10), DIN/RFN validity, and whether the SCN states its grounds with adequate specificity. Address every para of the SCN issue-wise; where the demand rests on a 2A/3B or 3B/1 mismatch, build a reconciliation table and invoke Circular 183/15/2022-GST and Circular 193/05/2023-GST on how such mismatches are to be treated. Since s.73 does not allege fraud, resist any suppression/wilful-misstatement language that creeps into the SCN, that belongs to s.74. Always request the s.75(4) personal hearing and ask for any document relied on but not supplied.
Preliminary objections
Limitation, DIN/RFN validity, vague SCN, and (for s.74/74A) absence of fraud per Instruction 05/2023.
Facts
Registration, tax period, and the audit/scrutiny findings the SCN is founded on.
Issue-wise submissions
One sub-heading per demand item with reconciliation and supporting documents.
Quantification
Tax/interest/penalty computation contested or accepted, split CGST/SGST/IGST/cess.
Prayer
Request the demand be dropped, or reduced to the amount accepted.
Hearing request
Personal hearing is mandatory under s.75(4), request a date.
FAQs
What is a Show cause notice u/s 73 (non-fraud)?
Audit/scrutiny findings, FY ≤ 2023-24, no allegation of fraud/wilful misstatement
What is the time limit to reply to a Show cause notice u/s 73 (non-fraud)?
As specified in the notice. Paying tax and interest within 30 days of issue ends the notice without penalty (s.73(8)). To be confirmed against the notified text. Set by the statute or rules; counted from service.
How is the reply to a Show cause notice u/s 73 (non-fraud) filed?
On FORM GST DRC-06: Reply to show cause notice, through GST portal: Services > User Services > View Notices & Orders.
What should the reply include?
Limitation objection under s.73(10); ITC/turnover reconciliation table for the 2A-3B or 3B-1 mismatch alleged; Circular 183/15/2022-GST and Circular 193/05/2023-GST where the demand is a 2A/3B or 3B/1 mismatch; Express request for the s.75(4) personal hearing; Request for documents relied on in the SCN but not supplied.
14 days free · No card required
This page summarises the notice type for chartered accountants and is not legal advice. Check the notice and the notified text before you file.