Received a GST notice? A calm first-response checklist
Most GST notices are about mismatches, not fraud. What matters is reading the notice correctly and replying on time with the right reconciliation.
Accellaw Editorial
A notice from the GST department is stressful, but most are routine — a mismatch between what you reported and what the system expected. The cost of a notice usually comes from missing the deadline or replying without evidence, not from the issue itself.
1. Identify exactly what you received
Note the form number, the section of the law it is issued under, the tax period, and the amount (if any) in question. A scrutiny notice asking for an explanation is very different from a show-cause notice proposing a demand.
- ASMT-10 — scrutiny of returns under Section 61; reply in ASMT-11.
- DRC-01A — intimation of tax ascertained, where issued before a show cause notice; a chance to pay or explain early.
- DRC-01 — summary of a show cause notice under Section 73 (no fraud), Section 74 (fraud or suppression alleged), or Section 74A for periods from FY 2024-25; reply in DRC-06.
- REG-17 or REG-31 — proposed cancellation or suspension of registration.
2. Mark the deadline
Every notice states a response date — 30 days is common for scrutiny notices under Rule 99. Put it in your calendar today. If you genuinely need more time, request an extension through the portal before the deadline — not after.
3. Reconcile before you reply
- Compare GSTR-1 against GSTR-3B for the period
- Compare input tax credit claimed against GSTR-2B
- Check e-way bills and e-invoices against reported turnover
- Pull the purchase and sales registers for the period
4. Reply point by point
Address every discrepancy raised, attach supporting documents as annexures, and keep the tone factual. If part of the demand is correct, it is often better to accept and pay that portion with interest through Form DRC-03, and contest only what is wrong. Timing matters: in a Section 73 case, paying the tax and interest before the show cause notice, or within 30 days of it, avoids penalty altogether.
5. Ask for a hearing
Section 75(4) requires the officer to give you a personal hearing if you ask for one or if an adverse decision is contemplated. Request it in your reply — it is often where a matter is resolved.
6. Keep a record
Download the acknowledgement of your reply and keep copies of everything submitted. If an adverse order follows, an appeal under Section 107 must be filed within three months with a pre-deposit of 10% of the disputed tax, and this record is your foundation.