GST Notices — Types, How to Respond and Deadlines You Cannot Miss

Receiving a GST notice can be stressful — but most notices are routine and can be resolved with the right response. Ignoring a GST notice is the worst thing you can do, as it typically leads to ex-parte orders and heavy penalties. This guide covers the most common types of GST notices, their meaning and exactly how to respond.

Why are GST Notices Issued?

GST officers issue notices for a variety of reasons:

• Discrepancies between GSTR-1 and GSTR-3B
• ITC claimed in GSTR-3B exceeds ITC available in GSTR-2B
• Mismatch between GST returns and Income Tax returns
• Short payment or non-payment of GST
• Non-filing of returns
• Audit or scrutiny selection
• Cancellation of registration proceedings
• Request for additional information or documents

Common Types of GST Notices

ASMT-10 (Scrutiny Notice): Issued when the officer finds discrepancies in your filed returns. You must respond within 30 days with an explanation or pay the differential tax. If satisfied, the officer issues ASMT-12 (order dropping the proceedings). If not, the matter proceeds to adjudication.

DRC-01 (Demand Notice): Issued before raising a demand to give you an opportunity to show cause. Under Section 73 (non-fraud cases), DRC-01 is issued with a 30-day response window. Under Section 74 (fraud cases), the notice period is different. Responding within the given time by paying the tax and 15% interest (Sections 73/74) can close the matter without penalty.

DRC-01A (Pre-Show Cause Notice): Issued before DRC-01, giving you a preliminary opportunity to pay the liability and avoid the formal demand process.

REG-17 (Show Cause for Cancellation): Issued when the officer proposes to cancel your GST registration — for example, if you have not filed returns for 6 consecutive months or have not commenced business after registration. Respond within 7 working days to prevent cancellation.

ASMT-11 (Response to ASMT-10): This is YOUR response form to a scrutiny notice — not a notice from the officer.

How to Respond to a GST Notice

Step 1 — Read carefully: Identify the notice type, the specific discrepancy alleged and the response deadline.

Step 2 — Gather evidence: Pull your returns, books of accounts, invoices and ITC records relevant to the discrepancy.

Step 3 — Draft your response: Address each allegation with supporting documents. If the discrepancy is genuine, compute the correct tax liability and pay it voluntarily before responding — this reduces penalties.

Step 4 — File the response on the GST portal: Most responses are filed electronically on gst.gov.in under the relevant case.

Step 5 — Keep acknowledgement: Save the system-generated acknowledgement of your response for records.

Consequences of Not Responding

If you fail to respond to a notice within the prescribed time, the officer will pass an ex-parte order assessing the tax based on available information. This order can include penalty (up to 100% of the tax due in fraud cases) and 18% interest. Appealing an ex-parte order is harder than responding to the original notice.

Conclusion

A well-drafted response to a GST notice can close the matter with minimal impact. Delay or silence leads to expensive assessments and penalties. SPOTON's GST advisors handle all types of GST notices and departmental proceedings for businesses in Kerala. Contact us as soon as you receive any notice.