Receiving a notice from the GST department can be unsettling—but it doesn’t always mean something serious. Often, notices are routine, clarificatory, or easily resolved. However, ignoring or mishandling them can lead to penalties and legal complications. In this blog, CA Nikhil Anand explains the common types of GST notices, why they are issued, and how to respond properly.

📩 Why Does the GST Department Issue Notices?

GST notices are issued for various reasons, including:

• Mismatches in return filings
• Non-filing or delayed filing of returns
• Excess Input Tax Credit (ITC) claims
• Suspicious or high-risk transactions
• Audit, assessment, or recovery proceedings

🧾 Common Types of GST Notices

1. GSTR-3A: Notice for Non-Filing of Returns

Issued when a taxpayer fails to file GSTR-3B or GSTR-1 within the due date.

Response: File the pending return immediately and pay any applicable late fees or interest.

2. GST REG-03: Clarification on New Registration

Sent if the officer needs clarification or additional documents during GST registration.

Response: Submit required documents or explanations within 7 working days.

3. ASMT-10: Discrepancy in Returns

Issued when the department detects a mismatch in filed returns or suspect tax evasion.

Response: File a reply in ASMT-11 with a clear explanation and rectification, if necessary.

4. DRC-01: Show Cause Notice

Used in serious cases involving fraud, tax evasion, or short payment.

Response: Consult a tax expert immediately. File a reply in DRC-06 and attend any hearings scheduled.

5. DRC-07: Demand Notice

This is a final demand after adjudication. It shows the amount payable in tax, interest, and penalty.

Response: Pay the demand or file an appeal in DRC-03 or approach the appellate authority.

🔍 Best Practices When You Receive a GST Notice

• Read carefully: Understand the notice type and section it refers to.
• Check deadlines: Most notices require action within 7–15 days.
• Gather documents: Keep invoices, returns, and correspondence ready.
• File a timely response: Use the appropriate reply form (e.g., ASMT-11, DRC-06).
• Don’t ignore it: Inaction can result in penalties, cancellation of registration, or legal proceedings.
• Consult a professional: Complex notices, especially show cause notices, should be handled by a qualified CA.

📌 Preventive Tips

• File GST returns (GSTR-1, GSTR-3B) on time
• Regularly reconcile GSTR-2B with purchase registers
• Avoid claiming ineligible ITC
• Maintain all tax-related invoices and documentation
• Respond to departmental communications promptly

Conclusion

GST notices are manageable—when handled professionally and within time. Whether it’s a minor discrepancy or a serious notice, timely and correct action is the key to avoiding penalties and reputational risk.

📩 Need help replying to a GST notice? Let CA Nikhil Anand handle the process with accuracy and confidence.