A GST notice is a formal communication under the CGST Act, 2017, issued when GSTN identifies discrepancies in returns, delayed filings or data inconsistencies between a taxpayer's declarations and third-party data. Every notice names the legal provision it draws from, the form in which a reply must be filed, and the deadline for doing so.
GSTN runs continuous checks, matching declared data against suppliers' filings and comparing GST turnover with income tax return data. When a gap appears, a notice is issued asking for an explanation. A reply filed accurately before the deadline closes most notices at that stage. Delayed responses or replies that miss the point of the notice can allow a simple query to become a demand order with interest and penalty.
What is a GST notice?
A GST notice covers return scrutiny, document requests, unpaid tax recovery or registration cancellation proceedings. Each notice specifies the legal provision invoked, the applicable response form and the deadline. If no response is filed, the officer can raise an assessment order using only the data available with the department.
Types of GST notices
The CGST Act, 2017, prescribes a specific form for each notice type. The ones most businesses encounter are:
ASMT-10 (Section 61): Issued when discrepancies are identified in GST returns during scrutiny. The taxpayer must reply by filing ASMT-11 within 30 days, which may be extended by up to 15 days at the officer's discretion.
GSTR-3A (Rule 68): Issued when a taxpayer fails to file required returns such as GSTR-1 or GSTR-3B. The taxpayer must respond by filing the pending returns within 15 days from the date of service of the notice.
DRC-01 (Show Cause Notice): Up to FY 2023–24, this notice was issued under Section 73 for non-fraud cases or Section 74 for fraud cases. From FY 2024–25 onwards, it is issued under Section 74A, a unified demand provision. The taxpayer must respond by filing DRC-06 within 30 days.
DRC-01A (Rule 142): A pre-show cause notice intimation that allows the taxpayer to make a voluntary payment before formal proceedings begin. The taxpayer may either make a voluntary payment using DRC-03 or submit a representation before the show cause notice is issued.
REG-17 (Rule 22): Issued when GST authorities propose cancellation of a taxpayer's registration. The taxpayer must respond by filing REG-18 within 7 working days from the date of service of the notice.
Common reasons for receiving a GST notice
The moment a data gap appears in GSTN's automated return matching, a flag is raised. The most common triggers are:
- ITC claimed in GSTR-3B does not match the GSTR-2B, the biggest single cause of ASMT-10 and DRC-01 notices
- GSTR-1 or GSTR-3B filed after the due date, which automatically generates a GSTR-3A
- Turnover declared in GST returns does not align with income tax return data
- Refund claims that appear disproportionately high relative to tax paid in the same period
- Registration details that are outdated or incorrect, which can lead to REG-03 or REG-17 notices
- Mismatches detected through GST risk-based analytics, including discrepancies between e-way bill data and returns
How to reply to a GST notice
The following steps help ensure the reply is accurate and submitted before the GST notice order deadline.
- Read the notice carefully: Identify the form number, the tax period in question and exactly what the department is pointing to.
- Locate the discrepancy: Pull the GSTR-1, GSTR-3B and GSTR-2B for the relevant period and identify where the gap sits.
- Collect supporting documents: Gather the required documents like invoices, bank statements, purchase records and reconciliation workings.
- Access the GST portal: Log in to www.gst.gov.in and go to Services > User Services > View Notices and Orders.
- File in the correct form: Use ASMT-11 for ASMT-10, DRC-06 for DRC-01 and REG-18 for REG-17, and attach all relevant documents.
- Pay any accepted liability: If part of the liability is accepted, pay it through Form DRC-03 before submitting the reply. DRC-03 can also be used for full voluntary payment before or during proceedings.
- Request an extension if needed: Businesses that find themselves close to the GST notice order deadline may request an extension or adjournment, though approval is discretionary and not guaranteed under law.
Conclusion
Most GST notices close without escalating when the reply is filed correctly and on time. The root cause is usually a reconciliation gap or an unchecked return that a consistent monthly review would have caught.
TallyPrime helps businesses reconcile GSTR-1, GSTR-3B and GSTR-2B to identify mismatches before they trigger notices, and maintains the accurate records and documentation needed to file correct, timely replies when notices are received.
