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Facing a GST Notice?

GST notices usually arise from data mismatches between returns. Timely reply is critical to keep your GSTIN active.

What it usually means

  • Difference between GSTR-1 (Sales) and GSTR-3B (Tax Paid).
  • Claiming Input Tax Credit (ITC) that doesn't appear in GSTR-2B.
  • Non-payment of tax collected from customers.

Risks if ignored

  • Suspension or Cancellation of GST Registration.
  • Blocked Input Tax Credit (Electronic Credit Ledger).
  • Heavy interest @ 18% p.a. and penalty.

Deep Dive Analysis

GST notices (like ASMT-10 or DRC-01) are primarily automated discrepancies found by the GSTN system. The most common cause is that your GSTR-1 (Sales declared) does not match GSTR-3B (Tax paid), or your Input Tax Credit (ITC) claim in 3B is higher than what is reflected in GSTR-2B (Auto-drafted from supplier data).

Common GST Notice Types

Form ASMT-10

Scrutiny of returns for discrepancies.

Form GSTR-3A

Notice for defaulters who haven't filed returns.

Form DRC-01

Summary of Show Cause Notice for tax demand.

E-Way Bill

Interception of goods in transit.

How to Solve This

Select Solution Method

Handling Scrutiny Discrepancies

ASMT-10 is a scrutiny notice. You must explain why the difference exists to avoid a demand order.

1

Reconcile Data

Download GSTR-1, 3B, and 2A/2B for the year. Create an Excel sheet matching Invoice vs Portal.

2

Identify Reason

Common reasons: Credit Note issued but not in 3B, or typo in GSTR-1.

3

File ASMT-11

Draft a reply in Form ASMT-11 attaching your reconciliation and explanation. If tax is short paid, pay via DRC-03.

Still unsure what to do?

If the steps above seem complicated, or if the amount involved is high, do not risk a DIY fix. Let our CAs handle it.