What should I do when I receive a GST notice?

First, login to the GST portal and download the original notice (Services → Notices and Orders). Read it carefully to identify the notice type, the discrepancy cited, the tax period involved, and the deadline for response. Never ignore a GST notice — an unanswered DRC-01 automatically becomes a final demand order. Consult a CA for notices involving large tax demands.

What is ASMT-10 notice in GST?

ASMT-10 is a notice for scrutiny of returns. It is issued by the GST officer when discrepancies are found between your GSTR-1 (outward supplies declared) and GSTR-3B (tax paid), or when your ITC claims appear excessive compared to GSTR-2B. You must respond in Form ASMT-11 within 30 days, explaining the discrepancy with supporting documents.

What is DRC-01 notice in GST?

DRC-01 is a Show Cause Notice (SCN) for tax demand. It is issued before a formal demand order, giving you the opportunity to explain why the proposed tax, interest, and penalty should not be levied. You must respond within the time specified (usually 30 days) either by paying the amount (via DRC-03) or by filing a written objection.

What is REG-03 notice in GST?

REG-03 is a notice seeking clarification during the GST registration process. The officer issues it when they need additional documents or clarification about your business premises, nature of business, or any other registration-related query. You must respond within 7 working days using Form REG-04, failing which the registration application may be rejected.

GST Notice Guide — ASMT-10, DRC-01, REG-03 & All Notice Types Explained

⚠️ Important: GST notices have legal implications and strict deadlines. This guide is for educational purposes. For any notice involving a significant tax demand, always consult a qualified Chartered Accountant or GST practitioner before responding.

ASMT-10

Scrutiny Notice — Return Mismatch

Urgent ⏱ 30 days to respond Section 61 CGST Act

DRC-01

Show Cause Notice — Tax Demand

Urgent ⏱ 30 days to respond Section 73/74 CGST Act

DRC-07

Final Demand Order — Tax + Penalty

Critical ⏱ 90 days to respond Section 73/74 CGST Act

REG-03

Registration Query Notice

Important ⏱ 7 days to respond Rule 9(2) CGST Rules

REG-17

Cancellation Notice by Officer

Critical ⏱ 7 days to respond Rule 22(1) CGST Rules

CMP-05

Composition Scheme Violation Notice

Urgent ⏱ 15 days to respond Rule 6(4) CGST Rules

ASMT-14

Best Judgement Assessment Notice

Urgent ⏱ 15 days to respond Section 62 CGST Act

GSTR-3B Mismatch

Return Mismatch Notice

Important Informational

DRC-03

Voluntary Payment (Not a Notice)

Info Rule 142(2) CGST Rules

APL-04

Order of Appellate Authority

Important ⏱ 180 days to respond Section 107 CGST Act

What is this notice?

What to do — Response Steps

Governing provision

How a Typical GST Demand Proceeds — Timeline

Step 1

ASMT-10 or Discrepancy Intimation

Officer finds mismatch between GSTR-1/3B/2B. Sends ASMT-10 scrutiny notice. You have 30 days to explain.

Step 2

Your Reply (ASMT-11)

You file ASMT-11 with explanation and supporting documents. If the officer is satisfied, the matter closes with ASMT-12.

Step 3

DRC-01 Show Cause Notice

If the officer is not satisfied or you don't respond, a formal DRC-01 is issued demanding specific tax, interest, and penalty. You have 30 days.

Step 4

Your Reply or DRC-03 Payment

Pay via DRC-03 (closes the matter) or file a detailed written objection with evidence. Include invoices, bank statements, and reconciliation.

Step 5

DRC-07 Final Demand Order

If reply is not accepted or not filed, DRC-07 is issued — a final, confirmed demand. Now you must pay or appeal within 3 months.

Step 6

APL-01 Appeal

File appeal before Appellate Commissioner (APL-01) with 10% pre-deposit of disputed tax. Response in APL-04.

Step 7 (if needed)

GSTAT / High Court

Further appeal to GST Appellate Tribunal or High Court if APL-04 is unfavourable. 20% pre-deposit required for GSTAT.

Frequently Asked Questions

How do I check if I have received a GST notice?▾

Login to the GST portal → Services → User Services → View Notices and Orders. Filter by "Issued" status to see all pending notices. The portal also sends SMS/email alerts when a notice is issued to your registered mobile and email.

What if I missed the deadline to respond to a notice?▾

File the response immediately even if late, along with a condonation of delay application requesting the officer to condone the delay. A genuine reason (illness, flood, power outage) gives the best chance of acceptance. Do not leave it without any response — the situation worsens with time.

Can a CA respond to notices on my behalf?▾

Yes. You can authorise a CA or GST practitioner in the GST portal under Services → Registration → Amendment (add them as an authorised signatory or GST practitioner). They can then login and respond to notices on your GSTIN.

What is the penalty for ignoring a GST notice?▾

For ASMT-10: an ex-parte assessment order is issued (ASMT-15) with a tax demand based on available data. For DRC-01: the demand crystallises as DRC-07. Non-response can also be used as evidence of wilful suppression, escalating the penalty from 10% to 100% of tax under Section 74.

Verify your GSTIN status — check if your registration is Active, Suspended, or Cancelled before responding to a notice.

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