A GST notice in your inbox or on the portal can feel alarming, but most notices sent to small businesses are about mismatches — between two of your own returns, or between what you claimed and what your suppliers reported. Many can be answered with the right reconciliation and documents. What matters most is that you act calmly and within the time the notice gives you.
Here is a practical plan for the first seven days. Some notices give you longer than seven days and a few give you less, so always go by the date in your own notice.
Day 1: read it properly and confirm it is genuine
Log in to the GST portal and open Services → User Services → View Notices and Orders (and the “Additional Notices and Orders” tab under your case folder). A genuine notice issued through the portal will appear there. Notices from central tax officers generally carry a Document Identification Number (DIN). If you received something only by email or WhatsApp and cannot find it on the portal, treat it with caution and check before acting.
Then write down five things on a single page:
- Form and reference number — for example ASMT-10, DRC-01, DRC-01B, DRC-01C or REG-17.
- Tax period — the month, quarter or financial year being questioned.
- The issue — in one line, in your own words.
- Amount — tax, interest and any penalty mentioned.
- Reply-by date — and whether a personal hearing date is given.
Put the due date in your calendar with a reminder two days before it. If you work with an accountant, send them the notice today, not on the last day.
Common GST notices and what they usually mean
Forms and time limits are set by the GST rules and do change. The list below describes how these notices typically work; the notice itself is the final word on your deadline.
DRC-01B — GSTR-1 and GSTR-3B do not match
Sent when the tax you reported on sales in GSTR-1 is higher than the tax you paid in GSTR-3B beyond a set limit. You respond in Part B, usually within 7 days, either by paying the difference or explaining it (for example, an invoice reported in GSTR-1 but paid in the next month’s GSTR-3B).
DRC-01C — ITC claimed is more than GSTR-2B
Sent when the input tax credit claimed in GSTR-3B is more than what appears in your GSTR-2B beyond a set limit. Again, a reply is typically due within 7 days. We explain this in detail in our guide to GSTR-2B vs GSTR-3B mismatches.
ASMT-10 — scrutiny of returns
The officer has found discrepancies while scrutinising your returns. You reply in ASMT-11, normally within the time stated in the notice (often 30 days). A good reply here can stop the matter going further.
DRC-01A and DRC-01 — demand stage
DRC-01A is an intimation of tax the officer believes is payable; DRC-01 is the summary of a show cause notice. These are more serious because they can lead to a demand order with interest and penalty. Your reply (in DRC-06 for a show cause notice) should be complete and well-documented, and you may ask for a personal hearing.
REG-03 and REG-17 — registration
REG-03 asks for clarification on a new registration application; REG-17 proposes cancelling an existing registration, often for non-filing. Both usually allow a short reply window of about 7 working days, so these are the ones to act on first.
Days 2–3: gather your records for the period
Download everything for the tax period in the notice. Typically that means:
- GSTR-1 and GSTR-3B as filed, with payment challans and the electronic cash and credit ledgers.
- GSTR-2B (and GSTR-2A if relevant) for each month in question.
- Your sales register, purchase register and the invoices behind any items the notice names.
- Credit and debit notes, e-way bills and e-invoices where relevant.
- Bank statements for the period, and any earlier replies on the same issue.
Keep everything in one folder named after the notice reference. If your books are kept month by month with documents attached, this step takes an hour instead of a week.
Days 4–5: reconcile and find the real cause
Most notices come down to a handful of causes:
- Timing — an invoice reported in one month in GSTR-1 but taxed in another in GSTR-3B.
- Supplier errors — a supplier filed late, used the wrong GSTIN, or reported your purchase as a B2C sale, so the credit is missing from your GSTR-2B.
- Typing errors — a wrong figure or a credit put under IGST instead of CGST/SGST.
- Credit you should not have claimed — for example blocked credits, or credit on a bill the supplier never reported.
- Genuine short payment — the tax really was underpaid.
Build a simple table: what the department says, what your records say, the difference, and the reason for each difference with a document to prove it. This table usually becomes the heart of your reply.
Days 6–7: decide — explain, pay, or both
Once you know the cause, you have three broad options:
- Explain and contest — where your records show there is no shortfall, file a written reply with the reconciliation and supporting documents attached.
- Accept and pay — where the tax really is short, you can usually pay through DRC-03 with interest and mention the payment in your reply. Paying at an early stage may reduce penalty exposure in some cases; check the notice and the section it is issued under.
- Part and part — pay the portion that is genuinely due and explain the rest.
File the reply on the GST portal in the form the notice asks for, not only by email, and download the acknowledgement. If you need more time to collect documents, ask for it in writing before the due date, giving reasons; whether more time is allowed is up to the officer. If a personal hearing is offered or needed, ask for it in your reply.
Remember that GST returns cannot be revised once filed. Corrections for a past period generally go into a later return, within the time limits the law allows — another reason to fix the underlying cause, not just the notice.
Mistakes to avoid
- Ignoring it. An unanswered notice can lead to an order being passed on the basis of the department’s own figures.
- Paying first, reading later. Do not pay a demand until you have checked whether it is right.
- Vague replies. “We will check” is not a reply. Give figures, reasons and documents.
- Missing the portal. A reply sent only by email may not be on record.
- Not fixing the process. If supplier mismatches caused the notice, they will cause the next one too. A monthly GSTR-2B reconciliation prevents most repeat notices.
When to get help
Get professional help straight away if the notice is a show cause notice or demand, covers several years, involves a large amount, proposes cancelling your registration, or if the deadline is close. Our Jayanagar team reads the notice, explains what it means in plain words, and quotes a fixed fee before preparing the reply. Notice replies start from ₹3,499 per notice for a straightforward case; complex cases are quoted after we read the notice.