ASMT-10 Notice Reply — Complete Guide 2026

Last updated: June 2026 | Written by a State Tax Officer, Commercial Taxes Department, Telangana

What Is ASMT-10?

ASMT-10 is a scrutiny notice issued under Section 61 of the CGST Act, 2017. When the GST system detects a mismatch in your filed returns, the proper officer sends this notice asking you to explain the discrepancy. It is not a demand. No tax is confirmed at this stage.

Think of it as a question, not a penalty.

The officer reviews your GSTR-1, GSTR-3B, and GSTR-2B. If the numbers do not align, ASMT-10 is issued. You get 30 days to reply using Form ASMT-11. A satisfactory reply closes the matter with ASMT-12. No reply, or a weak reply, escalates to DRC-01 — a formal show cause notice where penalties apply.

Why Did You Receive ASMT-10?

The six most common triggers:

1. ITC claimed in GSTR-3B exceeds GSTR-2B — you claimed more input tax credit than your GSTR-2B shows as eligible.

2. Turnover mismatch between GSTR-1 and GSTR-3B — output liability declared in GSTR-3B is lower than what GSTR-1 reports.

3. ITC from cancelled or non-filing suppliers — your supplier's GST registration was cancelled, but you claimed ITC from their invoices.

4. HSN code mismatch — goods reported under one HSN in your returns do not match supplier invoices or e-way bills.

5. RCM not paid — you received services from an unregistered person or a GTA but did not pay Reverse Charge Mechanism tax in GSTR-3B.

6. GSTR-9 vs GSTR-3B gap — your annual return figures do not match the monthly returns filed during the year.

What Happens If You Ignore ASMT-10?

On Day 31 after the notice date, the system marks your GSTIN as a non-responder. The officer can then issue Form DRC-01 (Show Cause Notice under Section 73 or 74), initiate audit under Section 65, or conduct inspection under Section 67.

At DRC-01 stage, the penalty jumps. Under Section 73 (non-fraud), it is 10% of the demand. Under Section 74 (fraud or suppression), it is 100%. At ASMT-10 stage, if you accept the discrepancy and pay via DRC-03, the penalty is zero.

The math is simple. Reply now.

Step-by-Step: How to Reply to ASMT-10

Step 1 — Download and Read the Notice

Log in to gst.gov.in. Go to Services > User Services > View Additional Notices and Orders. Open the ASMT-10 entry. Download the PDF.

Write down three things from the notice: the reply deadline (30 days from service date), the tax periods covered, and the reference number.

Step 2 — Identify Each Discrepancy

For each row in Part B of the notice, determine the category: timing difference (supplier filed GSTR-1 late), genuine error (over-claimed ITC or under-reported turnover), or department error (system flags a mismatch that does not exist in your books).

Step 3 — Collect Your Documents

• GSTR-2A and GSTR-2B for all months under scrutiny

• Purchase register / inward supply ledger

• GSTR-1 and GSTR-3B filed copies

• Bank statements if turnover is questioned

• ITC reconciliation in Excel (row-wise, invoice-wise)

• DRC-03 payment receipt if you are accepting and paying

Free ASMT-11 Reply Format

Your reply must address each discrepancy in the notice separately. Use this format:

To, The Proper Officer, [State GST Office / CGST Range as per notice]

Subject: Reply to ASMT-10 Notice — Reference No: [Notice Reference Number] | GSTIN: [Your GSTIN] | Tax Period: [Month/Year]

Sir/Madam, With reference to the above-mentioned notice dated [date], I/We [Name of taxpayer] having GSTIN [GSTIN] respectfully submit the following reply:

For each discrepancy: state the discrepancy as written in the notice, then write your explanation with supporting documents referenced. Sign using [Legal Name of Business], GSTIN, authorized signatory name and date.

How to File ASMT-11 on the GST Portal

1. Log in to gst.gov.in

2. Go to Services > User Services > View Additional Notices and Orders

3. Click Reply against the ASMT-10 notice — this opens Form ASMT-11

4. Enter your point-wise reply in the text field

5. Upload supporting documents (PDF, max 10 MB per file)

6. Sign using DSC or EVC and submit. Save the acknowledgement number.

ASMT-10 vs DRC-01 vs DRC-07 — Quick Comparison

ASMT-10 (Section 61) is a scrutiny notice. Reply in ASMT-11 within 30 days. Penalty is zero if you pay via DRC-03 at this stage.

DRC-01 (Section 73/74/74A) is a Show Cause Notice. Reply in DRC-06 within 30 days. Penalty is 10% under Section 73 (non-fraud) or 100% under Section 74 (fraud).

DRC-07 is the final demand order. Appeal in APL-01 within 3 months. Demand is confirmed and recoverable.

Common Mistakes to Avoid

• Filing reply by email or physical letter — only GST portal submission of ASMT-11 is legally valid.

• Paying via regular PMT-06 challan — if you accept a discrepancy, pay using Form DRC-03 specifically.

• Forgetting interest — under Section 50, interest accrues at 18% per annum from the original due date. Pay tax and interest together.

• Addressing the notice as a whole instead of point-by-point — officers reject vague replies. Address each discrepancy row in Part B separately.

• Missing the 30-day deadline — calendar the deadline the day you receive the notice.

Frequently Asked Questions

Is ASMT-10 the same as a demand notice?

No. ASMT-10 is a scrutiny notice asking for explanation. A demand is raised only through DRC-01 and confirmed in DRC-07. ASMT-10 is an opportunity to explain before any demand is created.

Can I get more time to reply?

Yes. Section 61 allows the officer to extend the reply period by up to 15 days on a written request. Submit the extension request before the original deadline expires.

My supplier filed GSTR-1 late, so ITC shows in next month's GSTR-2B. Is that a valid reason?

Yes. Provide a reconciliation showing the invoice, the month it appeared in GSTR-2B, and that you claimed ITC only after it appeared. This explanation closes most ITC timing disputes.

What if I partially agree with the notice?

Pay the accepted portion via DRC-03. In your ASMT-11 reply, acknowledge the payment with the DRC-03 reference number, and contest the remaining discrepancy with documents.

Will filing ASMT-11 automatically prevent DRC-01?

Not automatically. If your reply is satisfactory, the officer closes the matter. If not, DRC-01 follows. A well-documented, point-by-point reply with strong reconciliation data gives the officer grounds to close at ASMT-11 itself.

Summary

ASMT-10 is the earliest — and cheapest — stage to resolve a GST discrepancy. The penalty at this stage is zero if you accept and pay. Act within 30 days. Address each point separately. Attach your reconciliation data. Save the ASMT-11 acknowledgement.

For more guides on GST notices, ITC reconciliation, and return filing, visit gstvala.com. All content is free, written by GST enforcement professionals with field experience.