A notice from the GST department is common and, in many cases, can be resolved with a clear reply and the right documents. The worst response is no response.
1. Identify the notice
Check the form number at the top. Common ones are:
- ASMT-10 — scrutiny of returns, pointing out discrepancies. Reply is filed in ASMT-11.
- DRC-01 — show-cause notice proposing tax, interest and penalty. Reply is filed in DRC-06.
- REG-17 — show-cause notice for cancellation of registration. Reply is filed in REG-18.
Also check the DIN (document identification number) and the date by which you must reply.
2. Gather records
GSTR-1, GSTR-3B and GSTR-2B for the period, purchase and sales registers, invoices, e-way bills, bank statements and any earlier correspondence.
3. Reconcile
Most notices arise from mismatches — between GSTR-1 and GSTR-3B, or between input tax credit claimed and GSTR-2B. Prepare a reconciliation that explains each difference.
4. Reply and ask for a hearing
File a reasoned reply on the portal with supporting documents, and ask for a personal hearing where tax or penalty is proposed. Keep acknowledgements of everything filed.
5. If an order goes against you
There are strict time limits for appeal. Where an order is passed without a hearing or is plainly arbitrary, a writ petition before the High Court may also be possible.
