Received a GST Notice? Don't Panic — Here's Exactly What to Do
- sai krishna
- Apr 28
- 2 min read
Receiving a GST notice can be alarming. But here's the truth: most GST notices are routine and can be resolved easily if you respond correctly and on time. The worst thing you can do is ignore them. Let's break down everything you need to know.
Types of GST Notices and What They Mean
DRC-01: Show Cause Notice for tax demand under Sections 73 or 74. Issued when the department believes you have unpaid taxes, excess ITC claims, or mismatched returns.
ASMT-10: Notice for scrutiny of returns. Issued when your GSTR-3B data doesn't match with GSTR-2A/2B or annual return GSTR-9.
REG-03: Seeking additional information/documents during GST registration or amendment.
REG-17: Show cause notice for cancellation of GST registration.
CMP-05: Notice to composition taxpayers for excess tax collection or non-compliance.
GSTR-3A: Notice for non-filing of returns. Issued when you have not filed your GSTR-3B for two consecutive months.
How to Check GST Notices on the Portal
Log in to gst.gov.in with your GSTIN and password
Go to Services → User Services → View Additional Notices and Orders
Select the relevant notice and click to open it. Read it carefully to understand the issue and the reply deadline.
Note the notice number, date of issue, and date by which you must reply.
Critical Time Limits for Replying to GST Notices
DRC-01 (Section 73 — no fraud): Must reply within 30 days. You can pay the tax demanded and avoid proceedings.
DRC-01 (Section 74 — fraud/suppression): Must reply within 30 days. Penalty is 15% of tax if paid before reply, 25% during proceedings.
ASMT-10: Must reply within 30 days in Form ASMT-11 with a proper explanation and supporting documents.
REG-03: Must reply within 7 working days in Form REG-04 with requested documents.
How to Reply to a DRC-01 Notice: Step by Step
Log in to gst.gov.in and navigate to Services → User Services → View Additional Notices and Orders
Find the DRC-01 notice and click 'Reply'
Option A — If you agree with the demand: Pay the tax using DRC-03 (voluntary payment) with applicable interest and penalty. This stops further proceedings.
Option B — If you disagree: File a reply explaining your position. Attach supporting documents such as bank statements, invoices, GSTR-2B reconciliation, or any other proof.
Submit and note the acknowledgement number. The officer will schedule a personal hearing if required.
What Happens If You Don't Reply?
Ignoring a GST notice is the worst mistake you can make. Here is what happens if you fail to respond:
The officer passes an ex-parte order — a demand order issued without your participation
Full tax, interest at 18% per annum, and penalty of up to 100% of tax is imposed
Recovery proceedings begin — bank account attachment and asset seizure are possible
Your GST registration may be suspended or cancelled
If you have received a GST notice, use GSTvala's free Notice Reply Guide or ask our AI assistant for specific guidance. We have helped thousands of businesses resolve notices without paying unnecessary penalties.
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