A. The Law
Relevant Sections – CGST Act, 2017
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Section 37 & 38: Furnishing details of outward and inward supplies.
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Section 61: Scrutiny of returns – authorities can question mismatch of invoices.
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Section 168: CBIC empowered to issue instructions for system-based compliance.
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Section 122 & 125: Penalties for failure to furnish details or wrong declaration.
Relevant Rules – CGST Rules, 2017
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Rule 59 & 60: Filing of GSTR-1 and GSTR-2B linked with counterparties’ data.
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Rule 142: Communication of demand or payment through electronic modes.
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System Functionality: Communication Between Taxpayers is a facilitative mechanism under GST Portal (not a statutory return), enabling taxpayers to communicate missing/mismatched invoice details.
B. How Do I – Step-wise Compliance Process
Step 1: Login
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Visit gst.gov.in → Login with valid GSTIN credentials.
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Navigate to Services > User Services > Communication Between Taxpayers.
Step 2: Functional Tabs
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Inbox: Notifications/replies received from counterparties.
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Compose (+): To send new notification to Supplier/Recipient.
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Outbox: Notifications/replies sent.
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Download CSV Template: To upload multiple documents at once.
Step 3: Send Notification
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Click + Compose.
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Select Notification To → Supplier / Recipient.
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Enter counterparty’s GSTIN (auto-populates Trade/Legal name).
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Enter Subject (max 50 chars).
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Choose Form Type (GSTR-1 or GSTR-3B), FY, Return Period.
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Add records (invoice/credit note/debit note).
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Manually: Add one by one with Action Required (e.g., File Missing Document, Amendment Required, Wrongly Sent, Payment Made).
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CSV Template: Download, fill details (max 50 documents per notification), upload.
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Add Remarks (max 200 chars).
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Attach supporting docs (max 4 files, PDF/JPEG, 5MB each).
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Click Send. System sends SMS & Email to counterparty.
Step 4: View Reply
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Go to Inbox → Notification & Reply Received.
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Select Supplier/Recipient tab.
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View details, download CSV/attachments if shared.
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Click Reply/Take Action.
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Provide response (e.g., Document Filed, Document Uploaded, Not Belonging to Me).
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Add remarks, upload attachments if needed.
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Click Send. Success message + SMS/Email sent.
Step 5: Upload Missing Document to GSTR-1 (Supplier only)
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If recipient reports missing invoice:
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Supplier can directly upload document to nearest open GSTR-1 period.
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Three scenarios:
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Already filed → system says “Already Filed.”
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Saved but not filed → Overwrites saved draft.
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Not saved/ filed → Upload allowed.
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Document moves to next available open return if earlier filed.
C. FAQs (15 Clarifications & Common Errors)
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Who can use CBT facility?
All registered taxpayers except TDS, TCS & NRTP. -
Can I send notification to both suppliers & recipients?
Yes, facility covers both directions. -
How many notifications can be sent per GSTIN?
Max 100 per tax period (month/quarter). -
Do counterparties get alerts?
Yes, via email, SMS, and dashboard alert. -
Can attachments be sent?
Yes, up to 4 files (JPEG/PDF, 5 MB each) with notification/reply. -
Can missing documents be uploaded to GSTR-1?
Yes, supplier can upload to nearest open GSTR-1 using CBT. -
What if I try uploading a document already filed?
System blocks and shows “Already Filed”. -
Can CSV be used?
Yes, up to 50 documents per CSV; more require separate notifications. -
What if ARN mismatch while responding?
Error occurs; check GSTIN, document no. & date. -
Can notification subject exceed 50 chars?
No, max 50 characters allowed. -
Can reasons be deselected once entered?
No, must delete and re-enter. -
What if counterparty doesn’t respond?
Reminder can be sent by recipient to supplier (not vice versa). -
Are actions item-specific or consolidated?
Item-level wise – each invoice/note must be tagged with required action. -
What if more than 50 records?
Split into multiple notifications. -
Is CBT legally binding like DRC notices?
No, it is a facilitative tool for reconciliation, not statutory demand.
D. Fillable Checklist – Communication Between Taxpayers
| Particulars | Details / Action | ✔ |
|---|---|---|
| GSTIN of Counterparty | ||
| Notification Type | ☐ Supplier ☐ Recipient | |
| Subject (≤50 chars) | ||
| Return Period & FY | ||
| Form Type | ☐ GSTR-1 ☐ GSTR-3B | |
| Action Required | ☐ File Missing Doc ☐ Amendment ☐ Wrongly Sent ☐ Payment Made ☐ Payment Not Received ☐ Others | |
| Remarks (≤200 chars) | ||
| Attachments (≤4 files, 5MB) | ||
| Sent Successfully? | Yes / No | |
| Reply Received? | Yes / No | |
| Uploaded to GSTR-1 (if applicable) | Yes / No |
