Received a GST Notice? How to Read It and Reply
Most GST notices are not accusations. They are the department asking you to explain a difference its systems have spotted between two of your own returns. What decides the outcome is whether you reply within the time given, in the right form, with the working attached. This guide covers the notices you're most likely to see and what each one needs.
Why it matters
Ignoring a Notice Turns a Query Into a Demand
GST proceedings run to fixed timelines. When you don't reply, the officer is entitled to decide on the material available, which means deciding against you.
Silence becomes an ex parte order
No reply means the officer proceeds on the information on record, and the demand is raised without your side of it.
Penalty depends on timing
Tax paid before a show cause notice is issued attracts a much lower penalty than tax paid after an order.
Recovery can follow quickly
Once a demand order is issued and the appeal window passes, bank accounts can be attached and recovery started.
Appeals have hard deadlines
A first appeal is due within three months, extendable by one month for sufficient cause. Beyond that, the order generally stands.
Before anything else, check three things
Is it genuine?
Every genuine communication carries a Document Identification Number (DIN). Verify it on the CBIC portal. A communication without a valid DIN is treated as invalid. Notices also appear under Services, then User Services, then View Notices and Orders on the GST portal, so confirm it is there before acting on an email or letter.
What is the reply deadline?
Read the date on the notice, not the date you opened it. Notices are served electronically on the portal, and time runs from that service, which is why unchecked registered email addresses cause so much damage.
Which period and which form?
Note the financial year, the section quoted and the form number. The reply form is specific to the notice, and a reply filed in the wrong place is treated as no reply at all.
The notices you're likely to get
| Form | What it means | You reply in |
|---|---|---|
| GSTR-3A | Returns not filed for a period | File the pending returns, within 15 days |
| DRC-01B | Liability in GSTR-1 exceeds what you paid in GSTR-3B | Part B of DRC-01B, within 7 days |
| DRC-01C | Credit claimed in GSTR-3B exceeds your GSTR-2B | Part B of DRC-01C, within 7 days |
| ASMT-10 | Scrutiny of returns has found a discrepancy | ASMT-11, usually within 30 days |
| DRC-01A | Intimation before a show cause notice, giving you a chance to pay | Part B of DRC-01A |
| DRC-01 | Show cause notice proposing a demand | DRC-06 |
| ADT-01 | Departmental audit of your records | Produce records; findings come in ADT-02 |
| REG-17 | Show cause why registration should not be cancelled | REG-18, within 7 working days |
| RFD-08 | Show cause why a refund should not be rejected | RFD-09, within 15 days |
These are generated by the system, not by an officer reviewing your file, and they are common. They are also the easiest to close: either explain the difference with a working, or pay the amount through DRC-03. What you must not do is leave them open, because an unanswered mismatch can block your next GSTR-1.
Replying to a scrutiny notice in ASMT-10
Scrutiny under Section 61 is the department comparing your returns against each other and against third-party data. The differences usually come from a short list of causes:
Credit claimed above GSTR-2B
Often invoices your supplier filed late. Show the invoice, the payment and the month the credit finally appeared in 2B.
Turnover differs from your ITR
GST turnover and income-tax turnover legitimately differ, because of stock transfers, the treatment of duties, and timing. Prepare a bridge between the two figures.
E-way bills exceed reported sales
Explain job work movements, goods sent on approval, and returns, which generate e-way bills without being sales.
Reverse charge not paid
Goods transport, legal fees, director remuneration and imports of service are the usual gaps.
Your reply in ASMT-11 should do three things: accept what is genuinely payable, explain what isn't with a figure-by-figure reconciliation, and attach the supporting documents. If you accept a part of it, pay that part through DRC-03 and attach the challan to your reply. A reply that accepts nothing and explains nothing is the one that turns into a show cause notice.
If the officer is satisfied, you receive ASMT-12 closing the matter. If not, the case moves to audit, inspection, or a demand under Section 73, 74 or 74A.
Pre-notice intimation and show cause
Form DRC-01A is an intimation, not yet a demand. It tells you what the officer proposes and gives you a chance to pay before a formal notice is issued. That timing matters a great deal, because penalty depends on when you pay:
| When you pay | Penalty, where there is no fraud or suppression |
|---|---|
| Before a show cause notice is issued | Nil, with tax and interest only |
| Within 60 days of the show cause notice | Nil, with tax and interest only |
| After the order | 10% of the tax, or ₹10,000, whichever is higher |
Where fraud, wilful misstatement or suppression is alleged, penalties are substantially higher, and paying early reduces but does not remove them.
If the matter proceeds, you receive a show cause notice in DRC-01 and reply in DRC-06, with a personal hearing. Attend the hearing even if you have filed a written reply, because an order passed without your appearing is much harder to challenge later.
How far back can the department go?
For financial years up to 2023-24, demands fell under Section 73 for ordinary cases and Section 74 where fraud or suppression was alleged, with different time limits for each. From FY 2024-25, Section 74A applies a common framework to both, with a single limitation period running from the due date of the annual return for that year and a further period for the officer to pass the order.
Because limitation runs from the annual return due date, notices for a financial year can arrive two or three years after it closed. This is why the annual return, the reconciliations behind it, and the working papers supporting them are worth keeping properly filed rather than reconstructed under pressure.
If the order goes against you
- First appeal: file in Form APL-01 before the Appellate Authority within three months of the order, extendable by one month if you show sufficient cause.
- Pre-deposit: 10% of the disputed tax must be paid to admit the appeal. Once paid, recovery of the balance is stayed.
- Tribunal: a further appeal lies to the GST Appellate Tribunal, with its own timeline and an additional pre-deposit.
- Rectification: where the order contains an obvious error on the face of the record, an application for rectification can be a faster route than an appeal.
- Registration cancelled for non-filing: apply for revocation in REG-21 after filing the pending returns and paying the dues, within the time allowed.
This guide is general information on Indian tax and corporate law as it stood on 11 September 2026, and is not advice for any particular case. Rules, due dates and forms change, and how they apply depends on your facts. Please confirm the current position before acting, or speak to a qualified professional.
Who this applies to
Notices We See Most Often in Vadodara
The pattern of notices tends to follow the kind of business.
Manufacturers
E-way bill and turnover comparisons, job work movements, and credit on capital goods are the usual scrutiny points.
Traders and distributors
Credit mismatches in DRC-01C dominate, usually because suppliers file late or not at all.
Exporters
Refund notices in RFD-08 turn on LUT validity, shipping bill matching and bank realisation documents.
Service providers
Reverse charge on legal and transport services, and place of supply questions on inter-state work, come up regularly.
Frequently asked questions
Answers to Your GST Notice Questions
How do I check whether a GST notice is genuine?
Every genuine communication carries a Document Identification Number, which you can verify on the CBIC portal. Genuine notices also appear on the GST portal under Services, User Services, View Notices and Orders. A communication without a valid DIN is treated as invalid.
How long do I have to reply to ASMT-10?
Usually 30 days from the date of the notice, though the notice itself states the period. Reply in Form ASMT-11 with a reconciliation and supporting documents. If the officer is satisfied, the matter is closed through ASMT-12.
What happens if I ignore a GST notice?
The officer can proceed on the material available and pass an order without your explanation. That leads to a demand in DRC-07, followed by recovery action such as attachment of bank accounts once the appeal period lapses.
Can I pay part of the demand and dispute the rest?
Yes. Pay the amount you accept through DRC-03, attach the challan to your reply, and explain the balance with supporting figures. Paying the accepted part early also reduces penalty, since tax paid before a show cause notice in a non-fraud case attracts no penalty.
What does it cost to file a GST appeal?
A first appeal in Form APL-01 requires a pre-deposit of 10% of the disputed tax, and must be filed within three months of the order, extendable by one month for sufficient cause. Once the pre-deposit is made, recovery of the balance is stayed.
My registration was cancelled for not filing returns. Can I get it back?
Apply for revocation in Form REG-21 within the time allowed, after filing all pending returns and paying the tax, interest and late fee. Act quickly, because the window is limited and operating without registration creates further liability.
Holding a GST Notice? Don't Let the Clock Run Out.
Send us the notice and the period it covers. We'll tell you what it's asking, what the reply needs and how long you have, and prepare the response with you from our Jetalpur office.
C M Patel & Company, Chartered Accountants
204, Pavan Complex, Jetalpur Road, Jetalpur, Vadodara, Gujarat 390007
Phone +91 99740 37318 · Email info.cmpatelandcompany@gmail.com
Monday to Saturday 10:00 am – 8:00 pm · Sunday 12:00 pm – 5:00 pm