GST Notice Received? Here’s Exactly What to Do (Step-by-Step Guide)

Opening a GST notice from the tax department can feel alarming. Whether it arrived as an email on the GST portal, a physical letter, or a message on your registered mobile number — the first reaction for most business owners is panic.

But here’s the truth: most GST notices are routine. They don’t mean you’re being raided or penalised. They usually mean the department has spotted a gap in your filings and wants an explanation. The key is to understand what type of notice you’ve received, what the department is actually asking, and how to respond within the deadline.

At PGA & Co., we’ve handled hundreds of GST notices for businesses pan-India. In this guide, we’ll walk you through the exact steps to follow — from identifying the notice type to drafting your reply.

Step 1: Identify the Type of GST Notice

Not all GST notices are the same. The form number on your notice tells you exactly why the department has contacted you. Here are the most common types:

GSTR-3A — Default Notice for Non-Filing

This is issued when you haven’t filed your GST returns (GSTR-1, GSTR-3B, GSTR-4, or GSTR-8). It’s the most common notice. The fix is straightforward: file the pending returns along with any applicable late fees and interest within 15 days.

ASMT-10 — Scrutiny Notice

Issued when the department spots discrepancies in your filed returns during scrutiny — for example, a mismatch between your GSTR-1 and GSTR-3B, or between your GSTR-3B and GSTR-2B. You need to reply using Form ASMT-11 within 30 days. This is where having clean reconciliation records becomes critical.

DRC-01 — Show Cause Notice (SCN)

This is more serious. For financial years up to 2023–24, this was issued under Section 73 (non-fraud) or Section 74 (fraud). From FY 2024–25 onwards, Section 74A provides a unified demand provision. You must respond using Form DRC-06 within 30 days.

DRC-01A — Pre-SCN Intimation

Think of this as a warning before the formal show cause notice. The department is giving you a chance to make a voluntary payment through Form DRC-03 or submit a representation before things escalate. This is actually an opportunity — if you handle it correctly, you can close the matter before a formal SCN is issued.

REG-17 / REG-03 — Registration Related

These notices relate to your GST registration — either seeking additional documentation, or explaining why your registration should not be cancelled. Respond promptly with the requested documents.

Step 2: Read the Notice Carefully

This sounds obvious, but it’s where most business owners go wrong. Before you react, note down these details from the notice:

• Form Number: This tells you the type (GSTR-3A, ASMT-10, DRC-01, etc.)

• Tax Period in Question: Which months or financial year is the department asking about?

• Specific Issue Raised: Is it an ITC mismatch? Non-filing? Short payment? Understand the exact allegation.

• Deadline for Reply: This is non-negotiable. Missing this deadline can lead to best-judgement assessment or penalties.

Step 3: Gather Your Documents

Pull together all supporting documents for the tax period mentioned in the notice. Typically, you’ll need:

• GSTR-1, GSTR-3B, and GSTR-2B for the relevant period

• Purchase and sales invoices

• Bank statements showing tax payments

• ITC reconciliation workings

• E-way bills (if the notice relates to transport discrepancies)

• Any amendments or corrections already filed

Step 4: Reconcile Before You Reply

This is the step most people skip — and it’s the most important one. Before drafting your reply, reconcile your data:

GSTR-1 vs GSTR-3B: Do your outward supply figures match across both returns?

GSTR-3B vs GSTR-2B: Does the ITC you claimed match what your suppliers reported?

GSTR-1 vs E-way Bill Portal: Are your transport records consistent with your sales data?

If you find a genuine error on your end, it’s better to acknowledge it, pay the differential tax through DRC-03, and close the matter. Trying to explain away a real discrepancy usually makes things worse.

Step 5: Draft and File Your Reply

Log in to the GST portal (www.gst.gov.in) and navigate to Services > User Services > View Notices and Orders. Use the correct response form:

• ASMT-10 notice: Reply using Form ASMT-11

• DRC-01 notice: Reply using Form DRC-06

• REG-17 notice: Reply using Form REG-18

Attach all supporting documents. Keep your response factual, structured, and professional. Avoid emotional language. If part of the liability is accepted, make the payment through DRC-03 before submitting your reply — this shows good faith and can significantly reduce the penalty.

Pro Tip from Our Practice

Once you submit a reply on the GST portal, you cannot revise it. So get it right the first time. If you’re unsure about the technical aspects, this is the stage to bring in a qualified CA.

Step 6: Follow Up and Track the Outcome

After filing your reply, monitor the portal for the officer’s response. If the officer accepts your explanation, the matter will be closed with a dropping order. If not, you may receive further queries or an adjudication order, against which you have appeal rights.

When Should You Involve a CA?

You can handle a simple GSTR-3A (non-filing) notice yourself. But for anything involving ITC mismatches, show cause notices, or demand orders, it’s worth getting professional help. A qualified CA can:

• Reconcile your returns properly to identify the root cause

• Draft a technically sound reply that addresses the department’s concerns

• Represent you before the assessing officer if needed

• Help you make voluntary payments strategically to minimise penalties

At PGA & Co., our team has Ex-Big 4 experience handling complex GST matters. If you’ve received a notice and aren’t sure what to do, reach out for a free 30-minute consultation.

Frequently Asked Questions (FAQ)

Q1. What happens if I don’t reply to a GST notice?

If you ignore a GST notice, the department can proceed with a best-judgement assessment based on available data. This typically results in a demand order with penalties — often 10% of the tax due or ₹10,000, whichever is higher. Your e-way bill generation can also be blocked.

Q2. Can a GST notice be withdrawn?

Yes. If you provide a satisfactory explanation or pay the outstanding liability before adjudication, the officer can issue a dropping order that effectively closes the proceedings. This is especially common under Section 73 cases.

Q3. Can I revise my reply after submitting it on the GST portal?

No. Once submitted, a reply cannot be revised. However, you may be able to submit additional documents or clarifications if the assessing officer permits it during proceedings.

Q4. How long do I have to reply to a GST notice?

It varies by notice type. GSTR-3A gives you 15 days. ASMT-10 and DRC-01 give you 30 days. Always check the specific deadline mentioned in your notice.

Q5. Should I pay the demanded amount before replying?

If you agree that part or all of the demand is legitimate, paying through Form DRC-03 before your reply demonstrates good faith and can reduce penalties. But don’t pay blindly — consult a CA to assess whether the demand is justified first.

Q6. Who is the best CA for GST notices in Chandigarh?

PGA & Co. Chartered Accountants in Sector 20-D, Chandigarh has a dedicated GST practice with Ex-Big 4 professionals. We’ve handled hundreds of GST notices across industries.

Call +91 86998-87200 or visit pgaca.in to book a consultation.