By Karun Reji, Chartered Accountant, BI-Outsource. General information, not tax or legal advice. Rules change: check the current position before you act.
Short answer: do not ignore a GST notice. Read which form it is, note the reply deadline (often 30 days or as stated), reconcile the numbers it questions, and reply on the portal with working papers. Most notices come from mismatches between GSTR-1, GSTR-3B, GSTR-2B and e-way bills, so the reply is mostly a reconciliation.
The common notices
| Form | What it is | Reply in |
|---|---|---|
| ASMT-10 | Scrutiny of returns: the officer lists discrepancies | ASMT-11, within the time stated (usually 30 days) |
| DRC-01A | Intimation of tax ascertained before a show cause notice | Part B of DRC-01A: pay or explain |
| DRC-01 (with SCN) | Summary of show cause notice demanding tax, interest, penalty | DRC-06, within the time stated |
| REG-17 / REG-31 | Proposed cancellation or suspension of registration | REG-18 or as directed |
Why notices are issued
- Credit claimed in GSTR-3B is higher than GSTR-2B.
- Sales in GSTR-1 do not match tax paid in GSTR-3B.
- E-way bills show more movement than reported turnover.
- Returns not filed for a period.
- Credit from suppliers whose registration was later cancelled.
How to reply
- Download the notice and note the form, period, amount and deadline.
- Reconcile the exact figures it questions: 3B vs 1, 3B vs 2B, books vs returns.
- Separate genuine errors (pay with interest, which limits penalty) from explainable differences.
- Prepare a reply with a reconciliation table and supporting documents.
- File the reply on the portal before the deadline and keep the acknowledgement.
- If a personal hearing is offered, attend with the working papers.
How to avoid them
Reconcile GSTR-2B before every 3B, tie GSTR-1 to 3B monthly, and do a full books-to-returns reconciliation before the annual return.
Need help? We prepare the reconciliations behind notice replies. See GST reconciliation services.
Frequently asked questions
The officer can decide on the facts available, which usually means a demand with interest and penalty and possible recovery action.
You can request an adjournment or extension; whether it is granted is at the officer's discretion, so ask early and give reasons.
If the amount is genuinely due, paying at that stage with interest usually reduces penalty. If not, explain with a reconciliation.
For anything beyond a simple mismatch, yes. Replies are filed by the taxpayer or an authorised representative.
