Received a GST Notice? Don't Panic.
Receiving a GST notice is not uncommon — the GST department routinely sends notices for reconciliation mismatches, late filing, ITC discrepancies and other compliance matters. Most notices can be resolved by submitting the correct information within the prescribed time. Ignoring a notice, however, can lead to ex-parte orders and significant penalties.
💡 Golden Rule
Never ignore a GST notice. Even if you disagree with the demand, always respond within the specified time limit. Non-response is treated as admission of the department's claim.
Types of GST Notices
| Notice Form | Purpose | Response Time |
|---|---|---|
| GSTR-3A | Non-filing of GST returns | 15 days |
| CMP-05 | Composition scheme violation | 15 days |
| REG-03 | Clarification during registration | 7 working days |
| REG-17 | Show cause notice for cancellation | 7 working days |
| ASMT-10 | Scrutiny notice — discrepancy in returns | 30 days |
| DRC-01 | Show cause notice for demand of tax | As specified in notice |
| DRC-01A | Pre-show cause notice (intimation) | 30 days |
| DRC-10 | Notice for recovery proceedings | As specified |
Most Common Reasons for GST Notice
- GSTR-1 vs GSTR-3B mismatch — sales declared in GSTR-1 don't match GSTR-3B
- GSTR-2B vs GSTR-3B ITC mismatch — ITC claimed exceeds what suppliers have reported
- Late filing of returns — GSTR-3A notice for non-filers
- Turnover mismatch with Income Tax — GST turnover doesn't match ITR figures
- Excess ITC claimed — ITC claimed without corresponding GSTR-2B entry
- E-invoice non-compliance — applicable taxpayers not generating IRN
- Short payment of tax — tax paid less than liability declared
Step-by-Step: How to Respond to ASMT-10 Scrutiny Notice
- Read carefully — identify exactly which discrepancy the notice is about. Note the period, amount, and the discrepancy type.
- Gather documents — pull up your GSTR-1, GSTR-3B, GSTR-2B, purchase invoices, and books of accounts for the mentioned period.
- Analyse the discrepancy — is it a genuine error, timing difference, or incorrect data in returns?
- Prepare response — log in to gst.gov.in → Services → User Services → View Notices and Orders → reply with explanation and supporting documents.
- Pay tax if due — if there is a genuine short payment, pay the tax with interest before responding. This reduces penalties.
- Submit within time — always respond before the deadline mentioned in the notice.
⚠️ GSTR-1 vs GSTR-3B Mismatch — Most Common Notice
This is the single most common notice type. Even genuine timing differences (sales reported in GSTR-1 in month X but tax paid in GSTR-3B in month Y) trigger auto-generated notices. Reconcile both returns monthly to prevent this.
Penalties if Notice is Not Responded To
| Situation | Consequence |
|---|---|
| No response to ASMT-10 | Best judgement assessment (ASMT-13) — department determines tax liability |
| No response to DRC-01 | Ex-parte demand order — demand confirmed without your input |
| No response to GSTR-3A | Assessment of non-filer — return filed by department |
| Confirmed demand — non-payment | Recovery — bank account attachment, property seizure |
Interest and Penalty on GST Demands
- Interest: 18% per annum on unpaid tax (24% if return not filed)
- Penalty — genuine error: 10% of tax or ₹10,000 (whichever is higher)
- Penalty — fraud/suppression: 100% of tax due
- Reduced penalty: Pay before show cause notice = 15% penalty. Pay within 30 days of notice = 25% penalty.
📈 Calculate Your GST Interest and Penalty
Use our free GST Penalty Calculator to compute exact interest and late fees on your demand.
Penalty Calculator →Frequently Asked Questions
I received a notice but the demand is wrong — what do I do?
Respond within the time limit with your explanation and supporting documents. Clearly state why the demand is incorrect. If your explanation is accepted, the officer will drop the demand via ASMT-12.
Can I get more time to respond to a notice?
Yes — you can file an adjournment request on the GST portal. However this is at the officer's discretion and should not be relied upon. Always try to respond within the original deadline.
Notice was sent to my old email — I missed it. What now?
Update your registered email and mobile in your GST profile immediately. For missed notices, approach the jurisdictional officer with an application explaining the situation and request the matter to be reconsidered.
Should I hire a CA to respond to a GST notice?
For simple notices (non-filing, small mismatches) you can respond yourself. For demand notices with large tax amounts, fraud allegations, or ITC disputes, professional help from a CA or GST practitioner is strongly recommended.