Demand & Show Cause Notice (SCN) Handling

N D Savla & Associates

A GST notice doesn’t mean you did something wrong. But ignoring it or replying casually can create real problems.

Demand notices and Show Cause Notices (SCN) are serious because this is where the department formally questions your GST position. At this stage, the focus shifts from clarification to justification.

Here’s what this really means. The department is proposing tax, interest, or penalty and asking why it should not be confirmed.

At N D Savla & Associates, we help you understand the notice, prepare strong replies, defend your position, and manage the case until closure.

What is a Demand Notice or Show Cause Notice (SCN)?

A Show Cause Notice is issued when the department believes there may be:

• Short payment of GST

• Excess ITC claim

• Wrong classification or tax rate

• Incorrect refund claim

• Non-reporting or under-reporting of turnover

• Documentation gaps

A Demand Notice is usually issued after review or assessment, proposing tax payable with interest or penalty.

Why SCN Handling Needs Expert Attention

If SCN is not handled properly, it may lead to:

• Confirmed tax demand

• Heavy penalties

• Interest liability

• Future audit red flags

• Litigation risk

Most cases are not about big violations. They are about data mismatch, interpretation differences, or documentation gaps.

Our SCN & Demand Handling Services

Notice Review & Exposure Analysis

We break down the notice into actual issues, risk areas, and financial exposure.

Data Reconciliation & Fact Checking

We reconcile GST returns, ITC data, books of accounts, and supporting records.

SCN Reply Drafting

We prepare structured replies with proper explanation, data backing, and legal references where required.

ITC Defence Support

Where ITC is challenged, we prepare invoice-level working and vendor compliance support.

Hearing Preparation & Representation Support

We help prepare submissions, explanation strategy, and discussion points.

Demand Mitigation Strategy

If exposure exists, we help reduce tax, penalty, or interest impact wherever possible.

Post Order Support

If order is issued, we guide on next steps including payment planning or appeal strategy.

Common SCN Issues We Help Resolve

• ITC mismatch with GSTR 2B

• GSTR 1 vs GSTR 3B differences

• Refund rejection or adjustment

• Classification disputes

• Wrong tax rate application

• Vendor non-compliance impact

• Stock or job work related disputes

• Past period reporting errors

Most SCNs are technical disputes, not intentional non-compliance.

Our Process

Step 1: Study notice scope and deadline
Step 2: Identify real risk vs explainable mismatch
Step 3: Prepare reconciliation and supporting documents
Step 4: Draft and submit SCN reply
Step 5: Support during hearings and department discussions
Step 6: Track case till final closure

Who Should Seek SCN Support Immediately

• Businesses receiving Show Cause Notices

• Companies receiving GST demand notices

• Businesses with high ITC claims

• Companies under audit or assessment proceedings

• Businesses with large refund claims

• Businesses facing repeated GST notices

Early response usually improves outcome quality.

Why Businesses Work With N D Savla & Associates

• Strong GST notice handling experience

• Reconciliation-driven defence approach

• Clear explanation of actual financial exposure

• Structured reply drafting

• Support from notice stage till closure

We focus on protecting your business position while maintaining compliance.