GST Assessment and Litigation Services in India – Notices, Appeals and GSTAT

GST assessment and litigation services in India help businesses respond to Goods and Services Tax notices, scrutiny proceedings, departmental demands, adjudication orders, recovery actions and statutory appeals. GST disputes frequently involve input tax credit, GSTR-1 and GSTR-3B differences, classification, valuation, reverse charge, refunds, registration and alleged tax short-payment.

EzyBiz India Consulting LLP provides Chartered Accountant-led GST assessment, notice reply, reconciliation, adjudication and appeal assistance for Indian businesses and foreign-owned companies. Our services include examination of allegations, statutory limitation review, preparation of factual and legal submissions, GST demand computations, documentary evidence and representation support.

Important 2026 legal position: Sections 73 and 74 principally govern relevant tax determination proceedings for periods up to FY 2023-24. Section 74A applies to tax periods from FY 2024-25 onward. The GST Appellate Tribunal (GSTAT) is operational, with prescribed electronic filing and procedural requirements.

Each dispute must be assessed against the law applicable to its tax period, the actual show cause notice, statutory deadlines and documentary evidence.

Received a GST notice, demand order or appellate communication? Contact our team at +91 98992 17778, email anil@ezybizindia.in or WhatsApp our GST specialists.

Explore our GST and Indirect Tax Advisory Services, GST Audit Services and GST Return Filing Services for related support.

GST Assessment and Litigation Services – Overview

What Are GST Assessment and Litigation Services?

GST assessment and litigation services involve professional support for proceedings initiated under the CGST Act, SGST Acts, IGST Act and applicable GST Rules.

They range from initial return scrutiny and clarification notices to adjudication, statutory appeals, GSTAT matters and coordination of higher-court proceedings.

Who Needs Professional GST Litigation Assistance?

Businesses may require professional assistance when the GST Department disputes their return information, tax calculation, input tax credit, refund claim or eligibility for registration.

Our services are relevant for companies, LLPs, proprietorships, manufacturers, traders, exporters, service providers, foreign-owned subsidiaries and other taxable persons.

Why Early Review of GST Notices Matters

Every GST notice should be reviewed promptly for the statutory provision invoked, allegations, tax periods, computation, documents relied upon and response deadline.

A properly prepared response at the initial stage can clarify factual differences and help preserve the taxpayer’s position if proceedings continue.

Types of GST Assessment under the CGST Act

Self-Assessment under Section 59

GST operates primarily on the principle of self-assessment, under which registered persons assess their tax liability and furnish prescribed returns.

Errors in self-assessed turnover, tax, ITC or classification may subsequently lead to departmental examination.

Scrutiny of Returns under Section 61

Under Section 61, the proper officer may scrutinise returns and related particulars to verify their correctness.

Discrepancies may be communicated through FORM GST ASMT-10, to which the taxpayer may respond in FORM GST ASMT-11.

Best-Judgment and Summary Assessments

Sections 62, 63 and 64 address assessment of non-filers, assessment of persons not registered despite liability, and summary assessment in specified circumstances.

Each provision has separate conditions, forms, timelines and remedial mechanisms.

Proceeding	Provision	Relevant Form
Scrutiny of returns	Section 61	ASMT-10 / ASMT-11 / ASMT-12
Assessment of non-filers	Section 62	ASMT-13
Assessment of unregistered persons	Section 63	ASMT-14 / ASMT-15
Summary assessment	Section 64	ASMT-16 and applicable remedies
Tax demand proceedings	Sections 73, 74 or 74A	SCN, DRC-01 and other prescribed forms

GST Scrutiny Notice – ASMT-10 and ASMT-11 Reply

Common Reasons for ASMT-10 Notices

GST scrutiny notices frequently arise from differences in GSTR-1 and GSTR-3B, inconsistencies with GSTR-2B, excess ITC, reverse charge omissions or discrepancies in reported outward supplies.

The discrepancy should be matched with the underlying accounting records rather than automatically accepted as additional tax payable.

How to Prepare an ASMT-11 Reply

A response should identify each alleged discrepancy, explain the underlying facts and attach relevant reconciliations, invoices, ledger extracts and other evidence.

The taxpayer should follow the deadline specified under the applicable scrutiny procedure and request additional time where legally available and necessary.

What Happens after the Scrutiny Reply?

If the explanation is accepted, the proper officer may communicate acceptance in FORM GST ASMT-12.

Where discrepancies remain unresolved, the Department may pursue further proceedings under the applicable provisions.

GST Show Cause Notices under Sections 73, 74 and 74A

Section 73 – Proceedings without Fraud for Earlier Years

Section 73 remains relevant for specified tax determinations relating to periods up to FY 2023-24 where the allegations do not involve fraud, wilful misstatement or suppression of facts to evade tax.

The notice, interest, penalty and limitation provisions applicable to the relevant period should be examined separately.

Section 74 – Allegations of Fraud or Suppression

Section 74 addresses cases involving fraud, wilful misstatement or suppression of facts to evade tax for periods up to FY 2023-24.

Where the Department alleges deliberate misconduct, the taxpayer should examine whether the legal ingredients of the allegation are established by the available evidence.

Section 74A – Demand Proceedings from FY 2024-25

Section 74A provides the principal determination framework for FY 2024-25 onward for tax not paid or short paid, erroneous refunds and ITC wrongly availed or utilised.

The provision distinguishes penalty consequences depending on whether fraud, wilful misstatement or suppression is established while providing a common framework for the relevant notice and order timelines.

Refer to the official Section 73 and official Section 74 provisions. The current Section 74A text can be accessed through the CBIC Tax Information Portal.

GST DRC-01 Notice Reply and Demand Proceedings

Understanding DRC-01 and the Detailed SCN

FORM GST DRC-01 generally communicates a summary of specified GST demand show cause notices.

The taxpayer must also examine the detailed notice, annexures, calculations and relied-upon documents. The DRC-01 summary alone may not contain every material allegation.

Drafting a Reply through DRC-06

FORM GST DRC-06 is used for submitting a response to applicable demand notices.

A professional reply should address allegations issue by issue, set out relevant facts, explain the statutory provisions and include documentary evidence and reconciliations.

Personal Hearing and Adjudication

GST demand proceedings may involve written submissions, further clarification and personal hearing under the relevant provisions.

Taxpayers should preserve hearing notices, submissions, acknowledgements and orders to maintain a complete record of the proceedings.

Input Tax Credit Disputes and GST Litigation

GSTR-2B and Purchase Register Mismatches

ITC demands often arise from differences between GSTR-3B credit claims and supplier-reported information in GSTR-2B or other relevant records.

Each mismatch should be examined by invoice, supplier, financial year and statutory eligibility conditions.

Supplier Default and Fake Invoice Allegations

The Department may question credits relating to non-compliant suppliers, disputed purchases, invoice-only transactions or supplies whose genuineness is challenged.

Taxpayers should review invoices, goods receipt evidence, transport records, bank payments, supplier correspondence and other relevant commercial documentation.

Blocked Credit and ITC Reversal Disputes

Section 17(5) restricts input tax credit for specified goods and services, subject to exceptions.

Disputes may also arise concerning exempt supplies, non-business use, reversals, capital goods and ITC time limits.

For maintaining supporting records, read our Accounts and Records under GST guide.

GST Classification, Valuation and Place-of-Supply Litigation

HSN and SAC Classification Disputes

Classification disputes involve the appropriate HSN or SAC code and the applicable GST rate or exemption.

Relevant material may include product specifications, contracts, industry practice, statutory notifications and judicial interpretation.

GST Valuation and Related-Party Transactions

Valuation disputes may involve related-party supplies, intercompany charges, discounts, reimbursements, free supplies or other components of taxable value.

Taxpayers should examine Section 15 and the applicable valuation rules together with the commercial documentation.

Place of Supply and Export-of-Services Issues

Cross-border transactions may require analysis of the IGST Act’s place-of-supply provisions and export-of-services conditions.

Foreign-owned subsidiaries may face disputes involving management charges, support services, cross-charges and intercompany arrangements.

See our India Market Entry Consulting Services for related regulatory support.

GST Departmental Audit, Inspection and Investigation

Departmental Audit under Section 65

Section 65 enables GST authorities to audit registered persons in accordance with the prescribed procedures.

Businesses should prepare the relevant books, GST reconciliations, invoices, contracts, tax computations and responses to audit observations.

Special Audit under Section 66

Special audit may be directed in prescribed circumstances and subject to the required approvals under Section 66.

The taxpayer should examine the scope, statutory basis and procedural requirements of the special audit.

Inspection, Search, Seizure and Summons

Proceedings under Sections 67 and 70 can involve inspection, search, seizure, production of documents and summons.

Businesses should preserve records, respond accurately and seek appropriate professional or legal representation based on the nature of the proceedings.

Read our GST Audit Services and GST Audit Checklist for supporting compliance guidance.

GST Refund Rejection and Registration Disputes

GST Refund Rejection Proceedings

GST refund disputes may involve ineligible ITC, unsupported zero-rated supplies, missing documents, limitation issues or discrepancies in refund computations.

The relevant RFD forms, refund order, supporting records and statutory remedies must be examined together.

GST Registration Cancellation and Revocation

GST registration may be cancelled for prescribed non-compliances, including applicable return-filing defaults.

Eligible taxpayers may seek revocation of officer-initiated cancellation under Section 30 and Rule 23 or consider other statutory remedies, as applicable.

Appeals against Adverse Refund or Registration Orders

Where an adverse appealable order is passed, businesses should assess Section 107 limitation, pre-deposit requirements and the appropriate grounds for appeal.

Supporting guidance is available in our GST Refund Services and GST Registration Cancellation and Revocation articles.

GST Demand Orders, Penalties and Recovery

DRC-07 and Adjudication Order Review

FORM GST DRC-07 is generally the prescribed electronic summary of the adjudication order recording tax, interest and penalty determined.

Review the complete speaking order, not only its summary, to understand the findings, computation and appeal rights.

Interest and Penalty under GST

Interest may arise under Section 50, while penalty provisions depend on the nature of the contravention and the relevant statutory framework.

For Section 74A cases, the penalty position should be examined separately according to the findings and applicable options for payment.

Demand Recovery and Protective Action

Section 79 provides for recovery of prescribed outstanding dues, while other statutory provisions govern timing and related protections.

Businesses should evaluate available appeals, pre-deposit consequences, payment options and any additional relief required in the particular case.

GST First Appeal under Section 107

Time Limit for Filing APL-01

A taxpayer’s first appeal under Section 107 is generally required within three months from communication of the appealable order.

The appellate authority may condone a further one month where sufficient cause is established. The actual limitation must be calculated from the relevant statutory facts.

GST Appeal Pre-Deposit Requirements

Under the applicable Section 107 framework, an appeal generally requires payment of the admitted liability and the prescribed percentage of disputed tax, subject to the current statutory cap and specific exceptions.

The pre-deposit calculation should be verified before filing, particularly for demands involving several tax heads and disputed penalties.

Preparation of Statement of Facts and Grounds

A well-prepared first appeal should contain a concise statement of facts, issue-wise grounds, supporting evidence, relevant legal provisions and the relief sought.

Any request for additional evidence, hearing or other procedural relief should be evaluated under the relevant rules.

GST Appellate Tribunal – GSTAT Appeal Services

GSTAT Appeal under Section 112

The GST Appellate Tribunal hears eligible second appeals against orders of the first appellate or revisional authority under the statutory framework.

Appeals require review of the order under challenge, limitation, applicable pre-deposit, court fees, documents and prescribed filing procedures.

GSTAT Electronic Filing and APL-05

Taxpayer appeals are generally filed through the prescribed GSTAT e-filing mechanism using FORM GST APL-05.

Supporting documentation may include the impugned order, statement of facts, grounds of appeal, relevant earlier orders, pre-deposit proof and authority documents.

Visit the official GST Appellate Tribunal website and GSTAT e-Filing Portal for current procedural instructions.

GSTAT Developments and Appeal Deadlines in 2026

GSTAT became operational with electronic appeal-filing arrangements and procedural directions during 2026.

For specified legacy cases, the Government extended the notified appeal-filing deadline to 31 July 2026. That deadline has passed as at October 2026.

Newer appeals and any cases involving expired limitation require an individual assessment of Section 112, relevant notifications and legally available relief. Businesses should not assume a general extension remains open.

GST Appeal Strategy, Limitation and Stay of Recovery

Review of Limitation and Service of Order

For every appeal, determine when the order was legally communicated or served and calculate limitation under the applicable provision.

Any special statutory extension, exclusion or condonation rule must be examined based on the particular case.

Effect of Statutory Pre-Deposit

Payment of prescribed pre-deposit can affect the stay of recovery of the remaining disputed demand under the applicable statutory provisions.

The taxpayer should distinguish automatic statutory consequences from additional interim relief that may be necessary for unusual circumstances.

Rectification, Appeal and Alternative Remedies

Where an order contains an apparent error, Section 161 rectification may be considered subject to its statutory scope and time limits.

Rectification, appeal and other remedies should be evaluated carefully. Filing a rectification application should not be assumed to automatically suspend an appeal limitation period.

GST Litigation for Foreign-Owned and Multinational Companies

Cross-Border Services and Intercompany Charges

Foreign-owned Indian companies may encounter disputes involving export of services, imported services, management fees, secondments and cross-border related-party transactions.

GST treatment should be reviewed against contracts, invoices, service evidence, payment arrangements and the applicable IGST provisions.

Reverse Charge and Related-Party Transactions

Reverse charge issues can arise from prescribed supplies, import of services and transactions between related or distinct persons.

Businesses should examine the relevant notifications, valuation rules and accounting entries before preparing a response to departmental allegations.

Coordination with Accounting, Corporate and Tax Teams

GST disputes may overlap with accounting records, corporate documentation, FEMA, direct tax and transfer pricing matters.

EzyBiz India can assist with cross-functional reconciliations and coordinate with external advocates or specialised counsel where the engagement requires it.

EzyBiz India GST Assessment and Litigation Services

GST Notice Reply and Assessment Representation

Our professional services may include:

• GST notice and order review
• Section-wise legal analysis and limitation assessment
• ASMT-10 and ASMT-11 assistance
• DRC-01 and DRC-06 replies
• GSTR-1, GSTR-3B and GSTR-2B reconciliation
• ITC and reverse charge analysis
• Tax, interest and penalty computations
• Preparation of supporting evidence
• Written submissions and hearing preparation

GST First Appeal and GSTAT Assistance

We assist with reviewing adverse orders, preparing grounds of appeal, drafting statements of facts, assessing limitation, compiling evidence and supporting eligible statutory appeal filings.

Where litigation requires representation by an advocate or specialist counsel, we assist with coordination and the underlying tax and accounting record.

Our GST Litigation Engagement Process

We begin with an assessment of the notice or order, statutory deadlines and available records.

We then agree the scope of work, including factual reconciliation, legal research, drafting, filing or representation support, depending on the matter.

Our professional fees depend on the disputed amount, number of issues, assessment years or tax periods, documentation and stages of proceedings.

Frequently Asked Questions on GST Assessment and Litigation

What Is the Difference between Sections 73, 74 and 74A?

Sections 73 and 74 apply to the relevant demand cases for periods up to FY 2023-24, distinguishing non-fraud cases from specified fraud or suppression cases. Section 74A governs determination for FY 2024-25 onward, with different penalty consequences according to the findings.

How Can I Reply to a GST Show Cause Notice?

Identify the statutory provision, issues and deadline; reconcile the facts and GST records; prepare issue-wise explanations; attach appropriate evidence; and file the reply through the prescribed GST Portal process, including DRC-06 where applicable.

What Is the GST Appeal Time Limit?

The first taxpayer appeal under Section 107 ordinarily has a three-month limitation from communication of the order, with a possible further one-month condonation period. GSTAT limitation is governed separately by Section 112 and applicable notifications.

Can a GST demand be contested when the Department alleges fake ITC?

Yes. The taxpayer may examine the legal grounds and available evidence and contest the allegation through the applicable proceedings. The outcome depends on the facts and statutory provisions.

Can GST recovery be stayed after filing an appeal?

Statutory pre-deposit can provide protection against recovery of the remaining disputed amount under the relevant provisions. Additional procedural steps may be necessary in specific circumstances.

Is GSTAT operational in 2026?

Yes. GSTAT is operational, and electronic filing is available under the applicable Tribunal procedures. Taxpayers should check current bench jurisdiction, filing directions and limitation before proceeding.

Do we need to engage an advocate for every GST notice?

No. The appropriate professional support depends on the type of proceeding and rules on authorised representation. Certain court proceedings require appropriately qualified legal counsel.

Can EzyBiz India assist foreign-owned subsidiaries?

Yes. Our services include GST disputes involving foreign-owned Indian companies, cross-border transactions, ITC, reverse charge, export refunds and related accounting matters.

Contact our GST assessment and litigation team: +91 98992 17778 | anil@ezybizindia.in | WhatsApp.

Related Services and Supporting GST Guides

• GST and Indirect Tax Advisory Services – Main Pillar
• GST Audit Services in India
• GST Audit Checklist
• Functions of GST Audit Commissionerate
• Can a Statutory Auditor Conduct GST Audit?
• GST Return Filing Services
• GST Return Filing Process
• GST Refund Services in India
• GST Refund Difficulties Faced by Exporters
• Tips for Uploading GST Refund Documents
• GST Registration Services
• GST Registration Cancellation and Revocation
• GST Cancellation for Non-Filers
• Accounts and Records under GST
• Accounting and Bookkeeping Services
• India Market Entry Consulting Services
• Income Tax Assessment and Litigation Services

Official GST and Regulatory References

• GST Portal – Government of India
• CBIC Tax Information Portal – Acts, Rules and Circulars
• CGST Section 73 – Tax Determination for Earlier Periods
• CGST Section 74 – Fraud and Suppression for Earlier Periods
• Goods and Services Tax Appellate Tribunal – Official Website
• GSTAT e-Filing Portal
• Ministry of Finance – GSTAT Appeal Deadline Extension, June 2026
• GST Council
• India Code – Indian Legislation

Contact EzyBiz India Consulting LLP

Mobile: +91 98992 17778

Email: anil@ezybizindia.in

WhatsApp: Contact Our GST Litigation Team

Reviewed By: CA Anil Agrawal, Founder, EzyBiz India Consulting LLP.

Last Updated: October 2026.

Disclaimer: This article provides general information regarding GST assessment, notices, adjudication, appeals and litigation in India. It is not a substitute for transaction-specific tax or legal advice. Relevant statutory provisions, limitation periods, demands, penalties, pre-deposit requirements, GSTAT procedures and available remedies depend on the tax period, the nature of the proceedings, the facts and the legislation in force. Sections 73 and 74 and Section 74A apply to different financial-year periods. GSTAT filing deadlines, portal instructions and procedural directions may change or may be subject to special provisions for particular cases. Taxpayers should verify current official notifications and orders and obtain appropriate professional advice before taking action. Representation before courts and tribunals is subject to applicable professional and legal requirements.