INDEX
- What is a GST Notice?
- Common Reasons Why GST Notices Are Issued
- Types of Common GST Notices & Their Meaning
How to Check if You’ve Received a GST Notice
How to Respond to a GST Notice – Step-by-Step
Penalties for Non-response or Late Response
- Expert Tips to Avoid GST Notices
- When to Seek Professional Help
Common GST Notices and How to Respond
The Goods and Services Tax (GST) regime in India has simplified indirect taxation — but with increased automation and data analytics, businesses are also seeing a rise in GST notices.
Many notices are auto-generated by the GST system due to mismatches, late filings, or incorrect reporting.
Understanding the type of notice, its reason, and the correct response procedure can save you from penalties and legal hassles.
1. What is a GST Notice?
A GST notice is an official communication from the GST Department (Central or State) seeking clarification, payment, or compliance from a registered taxpayer.
It can be issued electronically through the GST portal or via email/SMS to the registered contact details.
2. Common Reasons Why GST Notices Are Issued
Mismatch in Returns (GSTR-1 vs GSTR-3B) – Differences between outward supplies reported in GSTR-1 and tax paid in GSTR-3B.
Non-filing or Delayed Filing – If returns (GSTR-1, 3B, 9) are not filed within the prescribed due dates.
Excess Input Tax Credit (ITC) Claim – Claiming ITC more than what appears in GSTR-2B or on ineligible purchases.
E-way Bill and Invoice Mismatch – Discrepancies between e-way bill data and invoices.
Under-reporting of Turnover – Sales reported in GST return being lower than that in Income Tax or MCA filings.
Non-payment of GST Liability – Partially or fully unpaid tax dues.
Audit or Scrutiny by Department – Routine departmental scrutiny of returns or transactions.
Wrong GSTIN usage – Invoicing with incorrect or inactive GSTIN numbers.
3. Types of Common GST Notices & Their Meaning
| Form / Section | Purpose of Notice | Typical Reason |
|---|---|---|
| REG-03 | For clarification during GST registration process | Missing documents or incorrect information |
| CMP-05 | To deny composition scheme eligibility | Ineligible turnover or supply type |
| GSTR-3A | Non-filing of GST returns | Delay or default in return submission |
| RFD-08 / RFD-09 | Refund rejection or clarification | Supporting documents missing or incorrect claim |
| DRC-01 | Summary of show cause notice (demand of tax/interest/penalty) | Tax short payment or wrong ITC |
| DRC-03 | Voluntary payment of tax to avoid further action | Self-correction option |
| DRC-07 | Final order confirming tax demand | After adjudication by department |
| ASMT-10 | Scrutiny of returns | Differences or anomalies noticed by department |
| ASMT-11 / ASMT-12 | Reply to ASMT-10 / Closure of scrutiny | Response and resolution |
| ADJ-01 | Adjudication notice | Serious violation or suspected tax evasion |
4. How to Check if You’ve Received a GST Notice
Login to the GST Portal → www.gst.gov.in
Navigate to: Services → User Services → View Additional Notices/Orders
You’ll find all notices, replies, and orders issued to your GSTIN.
Always check registered email and mobile — notices are also sent there.
5. How to Respond to a GST Notice – Step-by-Step
Step 1: Identify the Type of Notice
Read the notice carefully — check the form number, issue date, reason, and time limit for reply.
Step 2: Gather Relevant Documents
Prepare supporting documents such as:
GST returns (GSTR-1, 3B, 2B)
Purchase and sales registers
Reconciliation statements
Payment challans and e-way bills
Step 3: Draft a Proper Reply
Reply in a professional and factual manner — avoid emotional or generic responses.
If the notice is genuine, pay tax, interest, or penalty through Form DRC-03.
If it’s an error or mismatch, provide reconciliation details and explanations.
Step 4: Submit Reply Online
Go to Services → User Services → View Additional Notices/Orders → Notices and Orders
Click on “Reply” and attach supporting documents (PDF format).
Keep acknowledgment receipt for records.
Step 5: Follow-up
If the department issues an order (DRC-07 or ASMT-12), check for status update and close the matter accordingly.
6. Penalties for Non-response or Late Response
Ignoring a GST notice can have serious consequences:
Monetary penalties up to ₹10,000 or tax amount involved (whichever is higher)
Suspension or cancellation of GST registration
Blocking of ITC under Rule 86A
Prosecution or interest under Section 122–132 of CGST Act
7. Expert Tips to Avoid GST Notices
✅ File all returns (GSTR-1, 3B, 9) on time.
✅ Reconcile GSTR-2B with purchase register monthly.
✅ Maintain proper documentation (invoices, e-way bills, ITC proofs).
✅ Regularly match GSTR-1 vs 3B data.
✅ Review annual turnover with books of accounts and Income Tax returns.
✅ Use automated reconciliation tools or accounting software.
8. When to Seek Professional Help
If the notice involves:
Large tax demands or alleged evasion
Legal interpretation issues
Repeated discrepancies
then it’s best to consult a Chartered Accountant or GST Practitioner before replying.
Key Takeaways
- Receiving a GST notice isn’t always a cause for panic — many are auto-generated or easily resolved.
- Timely response, accurate documentation, and proper record-keeping are key to staying compliant.
- With a proactive GST compliance system, you can avoid penalties, reduce risks, and maintain a clean tax profile.