A GST notice landing in your inbox is unsettling, but most notices start as routine questions about a mismatch - not an accusation. What matters is responding correctly and on time. Here is what the common notices mean and how to handle them.
ASMT-10: a scrutiny notice
Form ASMT-10 is issued under Section 61 when an officer scrutinises your returns and finds a discrepancy - often a mismatch between your GSTR-1, your GSTR-3B and the input tax credit reflected in GSTR-2B. It asks you to explain the difference. You generally get 30 days to respond, and you can request an extension if you need more time.
The right response is to reconcile your returns against your books, identify the real reason for the gap, and reply through Form ASMT-11 with a clear explanation and supporting documents. A good reply at this stage often closes the matter without any demand.
DRC-01: a show-cause notice
Form DRC-01 is more serious. It is a show-cause notice issued under Section 73 (genuine error, no fraud) or Section 74 (where suppression or fraud is alleged), and it sets out a tax demand. You typically have 30 days to respond. Here you either pay the amount, or file objections with evidence explaining why the demand is wrong.
Why deadlines matter so much
If you ignore a notice or miss the deadline, the officer can pass an order based only on the information they have, which usually means the full demand plus interest and penalty stands. Many large GST demands are not the result of a real liability - they are the result of a notice that was never answered.
A simple step-by-step
- Read the notice carefully and note the form number, the section quoted, the period, and the response deadline.
- Reconcile your GSTR-1, GSTR-3B and GSTR-2B for that period against your books.
- Identify the genuine reason for the discrepancy - timing difference, missed invoice, wrong head, or a real error.
- Draft a clear reply in the correct form with documents, and file it on the portal before the deadline.
- Keep an acknowledgement of your reply for your records.
The worst thing to do is panic or wait. A measured, well-documented reply filed on time is what turns a scary notice back into a routine query. If the amount is large or fraud is alleged, get professional help before you respond.
This article is general information, not tax or legal advice. Rules can change; confirm specifics for your business before acting.