GST Adjudication Support
Personal Hearing Representation & Order Management
GST adjudication is the stage at which a show cause notice moves from a written reply into an oral hearing and a reasoned order — where the proper officer decides whether to confirm, modify, or drop the proposed demand, and where the safeguards of Section 75 of the CGST Act 2017 are tested in practice.
Overview
What Is Adjudication Under GST?
At N D Savla & Associates, our qualified Chartered Accountants represent businesses through every stage of GST adjudication — from the notice of personal hearing right through to the final order and the choice of next step. Therefore, adjudication is where the proper officer actually decides whether to confirm, modify, or drop the proposed demand, and where the safeguards of Section 75 are tested in practice.
A strong reply is necessary, but it is rarely sufficient. Most cases turn at the personal hearing, where the issues are explained, evidence is walked through, and the adjudicating authority sees the matter for the first time as a connected story. Therefore, our practice treats adjudication as a distinct service line, sitting between SCN handling and appeal. Furthermore, the work connects with the wider indirect tax framework and the earlier assessment stage, so the hearing is anchored in the full record of the matter.
The GST Cycle
Where Adjudication Fits in the GST Cycle
Adjudication sits at a clear, defined point in the GST cycle — the last opportunity to settle a dispute before a binding first-level order is passed and the matter moves to appeal.
The Place of Adjudication in the GST Cycle
The matter typically begins with scrutiny or audit, escalates into a show cause notice, and enters adjudication once the reply is filed — the stage at which the issues are finally tested before a binding first-level order, after which the only remedy is rectification or appeal.
Who Is the Adjudicating Authority
Under Section 2(4) of the CGST Act 2017, the adjudicating authority is any authority authorised to pass an order under the Act — other than the Board, the First Appellate Authority, the Revisional Authority, and the GST Appellate Tribunal. The officer acts in a quasi-judicial role, so the hearing follows natural justice and the order must rest on the record before that officer.
Adjudication Sits Between the SCN and the Appeal
The order passed in adjudication, summarised in Form GST DRC-07, becomes the document an appeal is filed against. Hence, every weakness in the adjudication record carries forward, and every strength built into it pays back at the appeal stage.
Section 75, CGST Act 2017
Section 75 Safeguards in GST Adjudication
Section 75 of the CGST Act 2017 lays down the general provisions that govern every adjudication. The ten safeguards below protect a taxpayer through the process — and our team treats them as a working checklist from the request for hearing to the review of the order.
Opportunity of Personal Hearing
An opportunity of personal hearing must be granted where the taxpayer requests it in writing or where an adverse order is contemplated.
Maximum Three Adjournments
The adjudicating authority can grant a maximum of three adjournments on reasonable cause being shown.
Reasoned Order
The order must set out the relevant facts and the basis of the decision so that the reasoning is on the face of the record.
Demand Cannot Exceed the SCN
The tax, interest, and penalty confirmed cannot exceed the amount specified in the show cause notice.
Grounds Cannot Be Enlarged
Tax, interest, or penalty cannot be confirmed on grounds other than those specified in the show cause notice.
Limitation on the Order
If the order is not passed within the period prescribed in the section under which the notice was issued, the adjudication is deemed to be concluded.
Re-determination After Section 74 Is Set Aside
Where a Section 74 demand is held not to involve fraud or wilful misstatement, the matter can be re-determined under Section 73 within the prescribed period.
Fresh Order on Remand
Where a matter is remanded, a fresh order must be passed within the period prescribed by the Act.
Single Penalty for the Same Act
Where a penalty is levied under Section 73 or Section 74, no penalty for the same act can be levied under any other provision of the Act.
Self-Assessed Tax Excluded From Adjudication
Self-assessed tax shown in the returns is not subject to adjudication and is recoverable directly.
The Personal Hearing
The Personal Hearing in GST Adjudication
The personal hearing is the single most important touchpoint in adjudication. Therefore, how it is requested, prepared for, and conducted often determines the shape of the final order.
The Notice of Personal Hearing
After the reply to the show cause notice is filed, the adjudicating authority issues a notice of personal hearing fixing the date and venue. Therefore, attending the hearing is not optional; an absent taxpayer effectively allows the matter to be decided on the written record alone. Hence, the hearing notice should be acknowledged promptly and the appearance organised well in advance.
What Happens at the Personal Hearing
At the personal hearing, the authorised representative explains the reply, walks through the supporting evidence, and answers the officer's questions on the facts and the law. Therefore, the hearing is not a re-reading of the written submission; it is the chance to translate it into a clear, connected explanation. Hence, our team always prepares the spokesperson on the issues, the evidence, and the questions the officer is likely to raise.
The Right to Adjournment Within Limits
Where genuine cause exists, an adjournment of the personal hearing can be sought from the adjudicating authority. Therefore, under Section 75(5) of the CGST Act 2017, a maximum of three adjournments can be granted on reasonable cause. Hence, while an adjournment can buy preparation time, it should be used carefully and not as a routine tool.
The Order
The Adjudication Order — What It Must Contain
Once the hearing concludes, the adjudicating authority passes a reasoned order, the summary of which is issued in Form GST DRC-07. Therefore, the order must set out the relevant facts, the issues, the contentions of both sides, and the basis of the decision, in line with Section 75(6) of the CGST Act 2017.
Our Process
Step-by-Step GST Adjudication Support Process
Our team follows a structured eight-step methodology for every adjudication engagement. The sequence keeps the record review, hearing preparation, representation, and post-order work aligned from start to finish.
Reviewing the SCN, Reply, and Supporting Record
Securing the Notice of Personal Hearing
Building the Hearing File and Issue Brief
Preparing the Spokesperson and the Rehearsal
Representing the Business at the Personal Hearing
Filing Additional Written Submissions and Authorities
Tracking the Order Under Section 75
Advising on Pay, Rectify, or Appeal
After the Order
After the Adjudication Order: Pay, Rectify, or Appeal
Every adjudication order leaves the business with one of three real choices. We advise on the right route based on the legal merits, the amounts at stake, and the wider compliance picture.
Pay & Close the Matter
Pay the confirmed tax, interest, and penalty and close the matter. Under Section 73 and Section 74 of the CGST Act 2017, an early payment after the order can attract reduced penalty exposure.
Seek Rectification
Seek rectification of an apparent error on the face of the order through the same adjudicating authority — the fastest route where the defect is clear.
File a First Appeal
File an appeal to the First Appellate Authority within the prescribed time, with the required pre-deposit, and continue the dispute — onward to the Tribunal where the matter travels further.
Our Appeal at GSTAT service covers the second appeal stage where the dispute travels further.
What Goes Wrong
Common Issues That Arise in GST Adjudication
A few recurring problems account for most defects in GST adjudication orders. Anticipating them shapes both the hearing strategy and the post-order review.
Personal Hearing Not Granted Properly
A hearing notice at short notice, a single hearing where multiple were warranted, or a hearing held without a meaningful opportunity to be heard undermines Section 75(4). The issue is raised on the record and forms part of any later challenge.
Order Going Beyond the Scope of the SCN
An order that confirms an amount larger than the show cause notice or rests on grounds outside the notice directly engages Section 75(7) and Section 75(8). Such an order is reviewed carefully and challenged on these specific grounds.
Order Lacking Reasoning Under Section 75(6)
Some orders dismiss the taxpayer's contentions without setting out reasons or without dealing with the documents on record, falling short of the reasoned-order requirement under Section 75(6). The absence of reasoning is highlighted in the appellate forum.
Wrong Section Invoked: 74 Instead of 73
Where Section 74 has been invoked without the facts that allegations of fraud, suppression, or wilful misstatement require, the reclassification from Section 74 to Section 73 becomes a substantive issue. Our team raises this point during the hearing and on the record.
Adjournment Refused Despite Reasonable Cause
Where a reasonable cause has been shown but an adjournment is refused, the safeguard of Section 75(5) can be raised on the record. The refusal is documented and the resulting order can be challenged on a denial-of-opportunity ground.
Demand Confirmed Without Considering Evidence
An order that confirms the demand without engaging with the documents and reconciliations on record is defective. We build the hearing record so every key document is acknowledged; our GSTR-2B reconciliation work covers the input tax credit side.
The Stakes
Consequences of a Confirmed Adverse Adjudication Order
A confirmed adverse order is not a one-time event. The cost of a poorly handled adjudication carries well beyond the proceeding itself.
Confirmed tax demand with interest — the order confirms the disputed tax along with interest from the original due date.
Penalty under Section 73 or Section 74 — penalty as prescribed under the section invoked stands confirmed by the order.
Recovery proceedings — a confirmed demand can move into recovery under Section 79 of the CGST Act 2017, including bank attachment.
Input tax credit denial — credit found ineligible is denied or reversed, with the corresponding tax payable in cash.
Pre-deposit and appeal cost — any first appeal will require the prescribed pre-deposit, which the business must fund alongside the dispute.
Scenarios We Handle
Common GST Adjudication Scenarios
Our practice covers every realistic adjudication profile. The approach changes with the issues, the section invoked, and the size of the demand.
Who We Serve
Businesses We Represent in GST Adjudication
Our GST adjudication practice spans every business profile that goes through a personal hearing. We tailor every engagement to the issues and the size of the matter.
Why Us
Why Choose N D Savla & Associates
Businesses choose our practice for five reasons rooted in real delivery.
Qualified Chartered Accountants lead every adjudication, so the matter is handled with technical depth and a clear view of Section 75 of the CGST Act 2017.
We prepare the hearing file, the issue brief, and the spokesperson so the personal hearing is presented as a connected story rather than a heap of papers.
We treat the Section 75 safeguards as a working checklist throughout, from the request for hearing to the review of the order.
Our work moves seamlessly from SCN handling into adjudication and onward to rectification or appeal, so the matter is not handed off between providers at every step.
Strong Mumbai and Pune expertise, serving clients pan-India, and we connect every adjudication with forward compliance so the same issue does not return.
Related Services
Our Wider GST & Indirect-Tax Practice
Our wider GST and indirect-tax practice covers the full dispute arc, from the first notice to the second appeal.
Frequently Asked Questions
Common Questions on GST Adjudication
What is adjudication under GST?
Who is the adjudicating authority in GST?
Is a personal hearing compulsory in GST adjudication?
How many adjournments can be sought in GST adjudication?
Can the adjudication order go beyond the SCN?
What is the time limit for passing the adjudication order?
What are the options after an adverse adjudication order?
About the Author
Published by the Indirect-Tax Practice of N D Savla & Associates
Facing a GST Personal Hearing? Talk to Our GST Team.
End-to-end GST adjudication representation for businesses, manufacturers, traders, exporters, service providers, and multi-State registrants — review of the SCN, reply, and record, hearing file and issue brief preparation, representation at the personal hearing before the adjudicating authority, order tracking under Section 75, Form GST DRC-07 review, and advice on payment, rectification, or appeal. The personal hearing is the last chance to settle a GST matter before it moves into the appeal cycle, so it deserves the same discipline as a formal oral argument.
Get in Touchnainitsavla@savlagroup.in · N D Savla & Associates, Mumbai
