Mandatory GST ASMT-10 notice before DRC-01 show cause notice, with ensuing proceedings stayed for non-compliance.

Prior issuance of notice in Form GST ASMT-10 under Rule 99 of the CGST Rules, 2017 was treated as mandatory before a show cause notice in Form GST DRC-01 could be issued. Because the respondents admitted that ASMT-10 had not been issued, the subsequent DRC-01 notices were found procedurally defective, and further proceedings pursuant to those notices were stayed.

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Issues: Whether issuance of notice in Form GST ASMT-10 under Rule 99 of the Central Goods and Services Tax Rules, 2017 was mandatory before issuance of the show cause notices in Form GST DRC-01, and whether further proceedings pursuant to those notices were liable to be stayed.

Analysis: The respondents admitted that no notice in Form GST ASMT-10 had been issued before the show cause notices in Form GST DRC-01. Rule 99 was read as making prior issuance of Form GST ASMT-10 mandatory before a show cause notice is issued.

Outcome: Further proceedings pursuant to the impugned notices were stayed.

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