PCT-03 Notice:

Understanding Section 25 of the CGST Act, 2017 and Related Rules

Extract of Section 25 of the CGST Act, 2017

Section 25 of the Central Goods and Services Tax (CGST) Act, 2017, outlines the procedure for registration under the GST regime. It stipulates that every person who is liable to be registered under GST must apply for registration in every state where they are liable. This process is mandatory and must be completed within thirty days from the date on which the person becomes liable for registration. The application must be made in the prescribed manner and is subject to certain conditions.

Section 25: Procedure for Registration

(1) Every person liable to be registered under this Act shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.

(2) The proper officer shall grant a person seeking registration under this Act a registration number in the manner and within such period as may be prescribed.

(3) The proper officer may, upon receipt of an application, make such inquiries as he may deem fit to verify the particulars of the application and accompanying documents and may grant or reject the application after due verification and approval.

(4) Where a person not liable to be registered under this Act voluntarily applies for registration, all provisions of this Act, as apply to a registered person, shall apply to such person.

(5) A registration or a Unique Identity Number shall be granted or rejected after due verification and approval in such manner and within such period as may be prescribed.

PCT-03 Notice

GST PCT-03 is a notice issued by the GST authorities to a taxpayer regarding the rejection of an application for enrolment as a Goods and Services Tax Practitioner (GSTP). This notice is a crucial part of the process, serving as a formal communication that requires the taxpayer to provide reasons why their application should not be rejected. Understanding this notice is key to being prepared and informed about the potential rejection of your application.

Example Scenario

Suppose an individual, Mr A, applies to become a GST Practitioner. During the verification process, the GST officer finds discrepancies in the documents submitted or deems that Mr A does not meet the required qualifications. The officer issued a PCT-03 notice to Mr A, asking him to explain why his application should not be rejected.

Legal Recourse and Proceedings

Legal Recourse

When a taxpayer receives a PCT-03 notice, they should:

  1. Review the Notice: Carefully read the notice to understand the specific reasons for the potential rejection of the application.
  2. Prepare a Response: Gather relevant documents and evidence to support their application and address the issues raised in the notice.
  3. Submit the Response: File the response within the specified time frame, typically 15 days from receipt of the notice.

Legal Proceedings

If the taxpayer fails to respond adequately or if the response is not satisfactory, the GST authorities may proceed with the following:

  • Rejection of Application: The application for enrolment as a GST Practitioner will be rejected.
  • Notification of Rejection: The taxpayer will receive a formal communication regarding the rejection of their application.

Penalties and Prosecution

While there are no direct penalties associated with failing to respond to a PCT-03 notice, the consequences of not being enrolled as a GST Practitioner can include:

  • Ineligibility to Practice: The individual will not be able to practice as a GST Practitioner, which will affect their professional opportunities.
  • Loss of Business: Being a registered GST practitioner may result in the individual losing potential clients and business opportunities.

Do’s and Don’ts on Receiving a PCT-03 Notice


  1. Read Carefully: Thoroughly read the notice to understand the specific reasons for the potential rejection of the application.
  2. Gather Information: Collect all necessary documents and information to support your case.
  3. Consult a Professional: If you are unsure about how to respond, seek advice from a legal expert or GST consultant.
  4. When you receive a PCT -03 notice, it’s crucial to respond promptly. Failing to do so can result in the rejection of your application. This emphasises the urgency and importance of the matter and highlights your need for immediate action.
  5. Maintain Records: Keep copies of the notice and your response for future reference.


  1. Ignore the Notice: Ignoring the notice will lead to the rejection of your application.
  2. Delay Response: Delaying your response can cause unnecessary complications and result in the rejection of your application.
  3. Provide Incorrect Information: Ensure that the information is accurate and complete to avoid further queries or issues.
  4. Disregard Professional Advice: Always consult with a professional if you are unsure about the notice’s content or implications.

Legal Remedy

If a taxpayer believes that the notice is unjust or if the application is rejected despite providing the necessary information, it’s important to remember that there are legal remedies available. This should reassure you that there are steps you can take to address the situation, such as filing an appeal under Section 107 of the CGST Act or requesting a review by higher authorities.

  1. Appeal: The taxpayer can file an appeal against the application’s rejection under Section 107 of the CGST Act within three months from the date of the rejection order.
  2. Review by Higher Authorities: Request a review of the decision by higher authorities if there is a valid ground to believe that the rejection was not justified.
  3. Reapply for Enrollment: If the application is rejected, the taxpayer can rectify the issues highlighted and reapply for enrollment as a GST Practitioner.


Section 25 of the CGST Act 2017 outlines the procedure for GST registration, and Rule 83 of the CGST Rules 2017 deals with the application process for GST Practitioners. The GST PCT-03 notice is an integral part of this process, allowing taxpayers to address any issues or discrepancies leading to the potential rejection of their application. Understanding how to respond to this notice is crucial for ensuring timely enrollment and compliance with GST laws. By following the dos and don’ts and knowing the legal remedies available, applicants can navigate the enrollment process smoothly and avoid potential legal issues.


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