Additional demand in the order, not raised in the SCN but discussed in Personal Hearing.

[KALLESHAMURTHY MURTHY K.N.]

Sir,

A TP has filed replies along with supporting documents. While passing order U/s 73, certain additional tax liability was demanded based on the discrepancies noticed from the documents so filed, such as rate of tax difference, CGST and SGST collected on interstate supply, invoices missed to enter the address of the recipient [but GSTIN entered], Commodity name not mentioned in the invoice [but HSN mentioned], which were not part of SCN. Is the additional demand so raised correct? The reason given for the demand is that the taxpayer has not produced documents even on demand, but after SCN, he has produced. However, facts have been discussed in the personal hearing.

AI Summary

GST adjudication limits require demands to stay within show-cause notice proposals, despite later document discrepancies or personal-hearing discussions.
GST adjudication demands must remain within the scope and quantum proposed in the show-cause notice under section 75(7). Discrepancies identified from documents submitted after the notice cannot support an additional demand unless they formed part of the notice proposal. Discussion at personal hearing does not enlarge the notice, as hearing is part of adjudication. An appropriate corrigendum or addendum should be issued before adjudication where additional grounds or liability are proposed, ensuring the taxpayer has notice of the case to be answered.