A GST notice is a written communication from the tax department that tells you what it thinks is wrong and asks you to explain, correct or pay. The notice names its own form and section, and that tells you how serious it is and what to do next. Do not ignore it: read the form number, find the deadline written on it, and reply on the GST portal with evidence.
Last reviewed: 17 October 2026. Facts checked. We opened CBIC Instruction No. 02/2023-GST dated 26 May 2023 and the CGST Act text on cbic-gst.gov.in (a consolidated version dated 1 January 2022, for section 61). We saw references to rule 142, DRC-01 and section 74A only in search results from the CBIC tax portal, whose pages failed with a certificate error. We did not open them. Time limits and response periods differ by notice and change, so always follow the date on your notice.
What a GST notice is
It is a formal communication under the CGST Act. Some are light, such as a request to explain a mismatch. Others start a case, such as a show cause notice for tax, interest and penalty. The form number on the notice is the fastest clue.
Common types
| Notice or form | What it usually means | Weight |
|---|---|---|
| ASMT-10 | Scrutiny of returns found discrepancies and the officer wants an explanation | Early stage |
| DRC-01A and DRC-01 | The officer communicates, or issues, a demand for tax, interest and penalty | Serious |
| Show cause notice under section 73 or 74 (section 74A for FY 2024-25 onwards) | Asks why tax should not be demanded | Serious |
| Reminder notices for missing returns, such as GSTR-3A | You have not filed a return | Moderate |
| Registration notices such as REG-17 | The department proposes to cancel registration | Serious |
| ADT-01 | Intimation of a departmental audit under section 65 | Formal process |
The first two rows and the section references come from the sources we opened or from search results flagged above. For the rest, we did not open the official pages, so check the notice text itself.
How scrutiny notices work
CBIC Instruction 02/2023 describes the process for returns from FY 2019-20 onwards:
- The department selects GSTINs using risk parameters.
- The officer issues ASMT-10 on the common portal, listing discrepancies by parameter and uploading worksheets. The instruction asks officers to keep them specific, not vague, and to quantify tax and interest where possible.
- If you already paid extra through DRC-03, the officer can take that into account.
- You reply in ASMT-11. You may accept the discrepancy and pay, or explain it. The reply must reach the officer in the period set by rule 99.
- If the explanation is acceptable, the officer closes the matter with ASMT-12.
- If not, the officer can issue a show cause notice under section 73, 74 or, for FY 2024-25 onwards, 74A, or refer the matter for audit or investigation.
Section 61 of the Act says that if no satisfactory explanation comes within thirty days of being informed, or such further period as the officer allows, the officer can take further action. We did not open rule 99 itself, so use the date on your notice.
Step by step: how to respond
- Read the whole notice. Note the form, section, tax period, amount and the date to reply or appear.
- Log the service date. Find out how and when it was served on the portal.
- Tell your team and your advisor on day one. Many delays start with a notice sitting unread.
- Pull the data. Use returns, GSTR-2B, books, e-way bills and invoices for the period named.
- Reconcile. Show where the department's figure comes from and where it differs. Our GST 2B reconciliation checker helps with credit mismatches.
- Decide: accept, partly accept, or dispute. If you accept, compute interest with the GST interest calculator and pay, with DRC-03 where it applies.
- Write the reply. State facts first, then law. Attach evidence and number the annexures.
- File on the portal before the deadline. Keep the acknowledgment.
- Ask for a hearing or time if needed. Do it in writing and within the period.
- Read the order. If you disagree, check the appeal route and time limit stated in it.
Reply formats are available as templates: ASMT and DRC reply and show cause notice reply. Treat them as starting points.
Mistakes to avoid
- Replying with a general letter that does not address each parameter.
- Paying without understanding the demand. Payment may be right, but know what you are accepting.
- Relying on email alone. The scrutiny notice is delivered on the common portal, so log in and check regularly.
- Giving different numbers in the reply and in the next return.
If a notice mentions audit, read GST audit: who needs one and what the department can do to see how that process differs from scrutiny.
Frequently Asked Questions
What should I do first when I get a GST notice?
Read the form number and the date to reply. Then collect the data for the period named and involve your advisor.
What is ASMT-10?
It is the notice the officer issues during scrutiny of returns, listing discrepancies and seeking your explanation. You reply in ASMT-11.
How long do I have to reply?
It depends on the notice. Section 61 mentions thirty days for scrutiny explanations, and rule 99 sets the period. Follow the date on your notice.
Is a show cause notice the same as a demand?
No. It asks you to show cause why tax should not be demanded. A demand follows in an order after you reply and are heard.
Can I pay and close a notice?
Where you accept the discrepancy, you can pay and inform the officer. The officer then decides whether to conclude. Get the closing communication in writing.
Related Articles
Statutory facts on this page are checked against their sources, and the page says where it relied on secondary reporting. How we verify · Report an error