First, Do Not Panic
A GST notice is not a penalty or an accusation — it is usually a request to explain something the department noticed in your returns. Most notices are resolved by reconciling your data and replying on time with supporting documents. What gets businesses into trouble is not the notice itself, but ignoring it or missing the deadline. This guide walks through what to do, calmly and correctly.
Step 1: Read the Notice Properly
Log in to the GST portal and go to Services → User Services → View Notices and Orders. Download the notice PDF and note three things:
- The form type (for example ASMT-10, DRC-01, or REG-03) — this tells you what kind of notice it is.
- The exact issue the officer has flagged.
- The deadline to reply — usually between 7 and 30 days.
Everything else follows from correctly identifying these.
Step 2: Know the Common Notice Types
- ASMT-10 (Scrutiny): Points out a discrepancy in your filed returns and asks you to explain. You reply using ASMT-11.
- DRC-01 (Demand / Show Cause): A demand notice proposing tax, interest, or penalty. You reply using DRC-06.
- REG-03 (Registration query): Raised during registration or amendment. You reply using REG-04.
Matching the correct reply form to the notice is essential — replying in the wrong form can be treated as no reply.
Step 3: Reconcile Before You Reply
Most scrutiny notices come down to a mismatch. Pull the relevant periods and reconcile:
- Your GSTR-1 (sales) against your GSTR-3B (summary) — a top trigger for ASMT-10.
- Your claimed ITC against GSTR-2B — see our GSTR-2A reconciliation guide.
- The specific invoices or entries the officer flagged.
Prepare a clear working that either explains the difference or accepts a genuine shortfall.
Step 4: Draft and File the Reply on Time
- Address each flagged point specifically — do not send a generic reply.
- Attach evidence: reconciliation statements, ledger extracts, and invoices.
- If tax is genuinely due, pay it and report the payment in your reply — this often limits penalties.
- File within the deadline on the portal. Missing it lets the officer proceed against you unilaterally.
Step 5: Protect Your Right to a Hearing
In your written reply to a scrutiny or demand notice, explicitly request a personal hearing under Section 75(4) of the CGST Act. Omitting this can waive your right to argue your case orally before an adverse order is passed. It costs nothing to ask, and it preserves an important safeguard.
How to Avoid Notices in the First Place
Most notices trace back to inconsistent data. You reduce your risk sharply by keeping GSTR-1 and GSTR-3B reconciled each month, claiming only the ITC that appears in GSTR-2B, and issuing clean, correctly coded invoices. Our guides to GST return filing and creating a GST invoice cover the habits that keep you off the department’s radar.
Conclusion
A GST notice is a manageable, procedural event: read it, identify the form and deadline, reconcile the flagged data, reply in the correct form with evidence, and preserve your right to a hearing. Handle it promptly and it usually ends there. The best defence, though, is clean data — reconciled returns and accurate invoices rarely draw scrutiny. InfiBis keeps your sales, ITC, and invoice records consistent so replying to a notice, or avoiding one, is straightforward. For complex or high-value demands, involve a CA.