When a ₹3 crore GST demand notice landed at the doorstep of a Bengaluru-based IT company, panic spread across the boardroom.
The finance head was suddenly dealing with departmental summons, blocked input credits, and a compliance backlog that threatened cash flow and client confidence.
But within 8 weeks, that same company saw 87% of the tax demand dropped — with zero penalties, zero litigation, and a clear compliance roadmap for the future.
Here’s how our team at Pitchers Global turned a tax scare into a strategic win.
How We Helped an IT Company Resolve a ₹3 Crore GST Notice — Without Litigation
The Challenge: A ₹3 Crore GST Demand and Mounting Pressure
The business — a mid-sized IT services firm catering to US and Indian clients — received a ₹3 crore GST notice triggered by input tax mismatches.
The notice alleged discrepancies between the company’s claimed input tax credit (ITC) and the data reflected in GSTR-2A, raising red flags for the department.
On deeper review, we identified three core issues:
- Input mismatches across multiple vendors — Many vendors hadn’t filed their returns or were later deregistered, leading to broken input chains.
- Departmental queries and scrutiny — The notice demanded immediate reconciliations and justifications within tight deadlines.
- Limited internal bandwidth — The finance team was lean, managing day-to-day operations but unequipped for an intensive audit response.
This combination — high-value exposure, documentation gaps, and compliance fatigue — created the perfect storm for potential penalties and litigation.
The Action Plan: Building a Factual, Audit-Proof Response
Rather than react hastily, Pitchers Global applied a structured, evidence-based strategy — and factual representation.
Here’s how we tackled it step by step:
1. GSTR-2A Reconciliation at Line-Item Level
We began by conducting a complete vendor-wise reconciliation of all GSTR-2A entries with purchase records.
Our team identified which input credits were legitimate but unreflected due to vendor filing delays or system mismatches.
2. Vendor Verification and Recovery
For vendors who had been deregistered or delayed in their filings, we initiated a corrective vendor communication process — ensuring revised filings where possible and securing proof of service and tax payment.
3. Documentation Trail Creation
We built a defensible documentation trail — contracts, invoices, payment proofs, and correspondence — aligned with departmental audit protocols.
This helped demonstrate genuine transactions and protect eligible credits.
4. Representation and Submission
Finally, we prepared a precise, audit-proof representation to the department — one that was factual, structured, and aligned with circulars and case precedents.
The key was not aggression, but clarity: showing compliance, not conflict.
The Outcome: ₹2.6 Crore Demand Dropped, No Litigation Needed
The results were both financial and strategic.
After reviewing our submission, the department dropped 87% of the total demand — nearly ₹2.6 crore — at the pre-adjudication stage itself.
The balance amount was adjusted through verified and eligible input credits, with no interest or penalties imposed.
But the impact went beyond numbers:
- Zero litigation: The case never escalated to appeal or tribunal.
- Zero penalties: The company’s compliance credibility was restored.
- Faster refund cycles: Clean records led to smoother future GST processing.
- Better internal systems: The company adopted a proactive monthly reconciliation model designed by our team.
What began as a compliance crisis ended as a lesson in precision and preparation.
The Core Insight: Clear Documentation Beats Fear
GST notices often trigger anxiety — but in reality, most disputes arise not from fraud but from data mismatches and documentation gaps.
The key lies in transparency, readiness, and accurate representation.
At Pitchers Global, we approach every case with this principle:
📊 Don’t fight the notice — clarify it with facts.
Our framework ensures that documentation, reconciliations, and representations are not reactive measures but built-in safeguards.
Final Takeaway
For fast-scaling businesses, tax scrutiny is inevitable.
But with the right partner, it doesn’t have to derail growth.
This IT company’s journey shows how a structured, technology-enabled compliance approach can turn a ₹3 crore GST crisis into an opportunity for financial discipline and credibility.
💬 Facing a GST notice or compliance challenge?
Let’s fix it before it escalates.
👉 Connect with Pitchers Global — where we turn tax disputes into strategic wins.