Unsigned GST Notice? You Still Owe 20% Tax

Courts can cancel unsigned GST assessment orders, but businesses must still deposit 20% of the tax demand before getting relief. If you get a GST notice, check if it is properly signed — an unsigned order can be legally invalid.

Here's what happened: Andhra Pradesh High Court ruled that GST assessment orders issued without a proper signature are legally invalid and cannot be corrected later.. These orders were issued under Form DRC-07, a final demand notice the GST department uses to recover unpaid tax from businesses.. Even though the court set aside the invalid orders, it required taxpayers to deposit 20% of the disputed tax amount before the cases were sent back for fresh assessment..

What you should do: Check every GST demand notice (DRC-07) you receive for a valid digital or physical signature — an unsigned notice may be legally challengeable.. If you plan to contest a GST order in court, budget for a 20% upfront tax deposit, as courts typically require this before granting relief.. Consult a GST practitioner immediately if you receive any assessment order you believe is procedurally defective — time limits for filing appeals are strict (usually 3 months)..

Pro tip: Under GST law, a DRC-07 order must carry the issuing officer's digital signature. If yours is missing, file a written objection with your GST officer before the appeal deadline — this alone can get the order quashed.

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