How to Respond to a GST Notice (DRC-01, ASMT-10, etc.)

Receiving a GST notice can make any taxpayer nervous. But don’t worry—most notices are just requests for clarification or correction, not penalties. The key is to understand the notice and respond correctly and on time.

In this blog, we’ll explain the common types of GST notices, what they mean, and how to respond effectively to avoid penalties or legal action.

1. Why Do You Get a GST Notice?

A GST notice is issued by the department for various reasons, such as:

• Mismatch in GST returns
• Excess Input Tax Credit (ITC) claim
• Non-filing or late filing of returns
• Suspicious transactions
• Differences in GSTR-1 and GSTR-3B
• Failure to pay GST or file annual returns

2. Common GST Notices and Their Meanings

3. How to Respond to a GST Notice (Step-by-Step)

Let’s take the most common notices and explain how to deal with them.

A. Responding to DRC-01 – Show Cause Notice

Why it’s issued:
When tax is unpaid, short-paid, or ITC is wrongly availed.

How to respond:

1. Log in to the GST Portal
2. Go to Services > User Services > View Additional Notices and Orders
3. Click on the DRC-01 notice
4. Prepare your reply and upload documents via Form DRC-06
5. You may also pay the tax and inform the department using Form DRC-03 (if applicable)

Tip: Consult a tax expert if the demand is incorrect. Don’t delay – you usually have 7 to 15 days to respond.

B. Responding to ASMT-10 – Scrutiny of Returns

Why it’s issued:
To ask for clarification on inconsistencies (like turnover mismatch, ITC difference).

How to respond:

1. Review the details mentioned in ASMT-10
2. Prepare a detailed explanation with supporting documents
3. Submit your reply in Form ASMT-11 on the portal

If the officer is satisfied, a no further action notice (ASMT-12) will be issued.

C. Responding to REG-17 – Show Cause for Cancellation of GSTIN

Why it’s issued:
If you fail to file returns, close your business, or give incorrect info.

How to respond:

1. Login and go to Services > Registration > Application for Filing Clarification
2. Select the relevant GSTIN and reason
3. Attach your explanation and proofs (like return filing acknowledgment)
4. Submit and track status online

Respond within 7 days of receiving the notice.

D. Responding to DRC-01A – Intimation Before SCN

Why it’s issued:
To give the taxpayer a chance to voluntarily pay tax before a formal SCN is issued.

How to respond:

• Use Form DRC-03 to pay the tax (if you’re okay with it), and avoid further proceedings.
• Or submit clarification if you disagree.

4. Tips for Replying to GST Notices

• Be timely – Most replies are time-sensitive. Missing deadlines can lead to penalties or registration cancellation.
• Be accurate – Double-check figures and use proper documentation (invoices, returns, payments).
• Be respectful – Use professional and concise language in your response.
• Keep records – Always keep copies of the notice, your reply, and acknowledgment of submission.

5. What Happens If You Ignore a GST Notice?

Ignoring a GST notice can result in:

• Penalty or interest on outstanding tax
• Blocking of ITC
• Suspension or cancellation of GSTIN
• Legal proceedings including audits or assessments

Conclusion

Getting a GST notice isn’t the end of the world—but how you respond makes all the difference. Read the notice carefully, act promptly, and keep your documents ready.

If you feel unsure, it’s better to seek expert help rather than make a wrong move.

Need Help Responding to a GST Notice?

Facing a DRC-01, ASMT-10, or other GST notices? Whether it’s about return mismatches, tax demand, or scrutiny—we can help you respond professionally and avoid penalties.

Taxeasy Solution
Supaul Bazar, Biraul,
Darbhanga, Bihar – 847203
Mob: 6289187606
Email: jhajp96@gmail.com