What is a GST notice?

A GST notice is an official communication from the GST department asking a taxpayer to explain, correct, pay or provide information regarding a discrepancy, non-compliance or default. Notices range from simple return reminders to show cause notices that can lead to demand and penalty.

How many days do I get to reply to a GST notice?

It depends on the notice. A GSTR-3A non-filing notice gives 15 days; a scrutiny notice in ASMT-10 typically gives 30 days; a show cause notice in DRC-01 generally gives 30 days. Always follow the exact deadline stated on the notice itself.

What happens if I do not reply to a GST notice?

Ignoring a notice leads to a best-judgment assessment, confirmed tax demand with interest and penalty, possible cancellation of registration, blocking of input tax credit, attachment of bank accounts and recovery proceedings. Non-response almost always worsens the outcome.

What is a show cause notice (SCN) under GST?

A show cause notice asks a taxpayer to explain why a proposed tax demand, penalty or action should not be taken. It is issued in form DRC-01 and is the formal start of a demand proceeding under section 73 (non-fraud) or section 74 (fraud).

What is the difference between section 73 and section 74 notices?

Section 73 applies where tax is short paid without fraud, with lower penalty and a shorter limitation period. Section 74 applies in cases of fraud, wilful misstatement or suppression, carrying a much higher penalty up to 100% of tax and a longer time limit.

Can I reply to a GST notice myself?

For a simple return reminder, yes. But for scrutiny, show cause and demand notices, professional drafting matters — a weak or incorrect reply can convert a defensible position into a confirmed demand. A Chartered Accountant ensures the reply is legally sound and properly evidenced.

What is a GSTR-3A notice?

GSTR-3A is a notice issued to a taxpayer who has not filed GST returns. It requires the return to be filed within 15 days along with applicable tax, interest and late fee, failing which a best-judgment assessment in ASMT-13 may follow.

ASMT-10 is a scrutiny notice issued when the officer finds discrepancies in returns, such as mismatches between GSTR-1, GSTR-3B and GSTR-2B. The taxpayer must explain or correct the discrepancy in form ASMT-11, usually within 30 days.

DRC-01 is the summary of a show cause notice issued before a tax demand under section 73 or 74. The taxpayer replies in DRC-06. If the explanation is not accepted, the demand is confirmed through an order in DRC-07.

Where do I reply to a GST notice?

Replies are filed online on the GST portal under Services > User Services > View Notices and Orders, using the prescribed reply form for that notice, with supporting documents attached as annexures.

Is there a penalty for late reply to a GST notice?

There is no separate fee for a late reply, but missing the deadline means the officer can proceed ex-parte and confirm the full demand with interest and penalty. The real cost of a late reply is losing the chance to defend your case.

How to Reply to a GST Notice (2026): All Types, Time Limits, Format & Penalties

First — don't panic, but don't ignore it

📨

A GST notice is a deadline, not a disaster

A notice simply means the department wants an explanation, a correction, a document or a payment. Most notices are routine and fully resolvable with a clear, timely, well-supported reply. The one fatal mistake is silence — every notice carries a deadline, and missing it lets the officer decide against you without hearing your side. Read it carefully, note the deadline, and respond properly.

Every GST notice tells you four things: what the issue is, which section it falls under, what action is proposed, and by when you must reply. Identify these first — they decide everything about your response. Each notice also carries a unique DIN (Document Identification Number); a communication without a valid DIN is not a legally valid notice.

Every GST notice type & how long you get to reply

These are the notices businesses receive most often, the form each comes in, and the time you have to respond. Always treat the deadline printed on your notice as final — these are typical periods.

Notice / Form	What it means	Reply form	Time to reply
GSTR-3A	Return(s) not filed — default notice	File the return itself	15 days
REG-03	Clarification sought on a registration application	REG-04	7 working days
REG-17	Show cause — why registration shouldn't be cancelled	REG-18	7 working days
REG-23	Show cause on revocation of cancellation	REG-24	7 working days
ASMT-10	Scrutiny — discrepancy found in returns	ASMT-11	30 days
ASMT-14	Best-judgment assessment show cause (sec 63)	Written reply + hearing	15 days
CMP-05	Show cause on eligibility for composition scheme	CMP-06	15 days
DRC-01	Show cause notice before demand (sec 73 / 74)	DRC-06	30 days
DRC-01A	Intimation of tax ascertained before SCN	DRC-03 (pay) / Part B reply	As stated
DRC-13 / DRC-16	Recovery from third party / attachment	Compliance / objection	Immediate
ADT-01	Notice for departmental audit (sec 65)	Produce records	15 days notice
RFD-08	Show cause on rejection of a refund claim	RFD-09	15 days
PCT-03	Show cause to a GST practitioner for misconduct	Written reply	As stated

💡 The most common notices for ordinary businesses are GSTR-3A (non-filing), ASMT-10 (return mismatch) and DRC-01 (demand). The first is the easiest to clear; the last is the most serious and should never be handled without professional help.

GST notices by section of the law

Every notice is issued under a specific section of the CGST Act, 2017 — and that section defines its seriousness, the penalty exposure and your rights. Here is how the key sections group together:

⚖️

1. Assessment & Tax Demands

Section 73Demand without fraudFor non-payment, short-payment or wrong refunds due to bona fide error or negligence — no intent to evade.Penalty: 10% of tax or ₹10,000, whichever is higher

Section 74Demand involving fraudFor fraud, wilful misstatement or suppression of facts to evade tax.Penalty: up to 100% of the tax evaded

Section 74AUnified demand sectionA consolidated section bringing both fraud and non-fraud demand cases under one common framework.

Section 76Tax collected but not paidTo recover any tax collected from customers but not deposited with the government — payable regardless of whether it was actually due.

🔍

2. Scrutiny & Verification

Section 61Scrutiny of returnsIssued when the officer finds discrepancies in your filed returns and seeks an explanation or payment of the difference (notice in ASMT-10).

Section 59Self-assessmentThe basis on which you assess and pay your own tax through returns — the foundation the department later verifies.

Section 60Provisional assessmentWhere you cannot determine value or tax rate, you may request provisional assessment, supplying additional information for a final order.

🚨

3. Investigation & Summons

Section 70SummonsEmpowers officers to summon any person to appear, give statements and produce documents or evidence in an inquiry. A summons must never be ignored.

Section 67Inspection, search & seizurePowers to inspect premises, search and seize goods, documents or books where evasion is suspected.

📋

4. Registration & Service

Section 29Cancellation of registrationGoverns cancellation of GST registration — by the taxpayer or by the department (notice in REG-17).

Section 30Revocation of cancellationLets you apply to revoke a cancelled registration within the allowed period after clearing pending returns and dues.

Section 169Modes of serving noticesDefines legally valid service — via the GST portal, email, registered post or hand delivery. Service through any prescribed mode is treated as valid delivery.

⚖️ Why the section matters: a notice under Section 73 is a far better position than one under Section 74 — the penalty difference is 10% versus 100% of tax. The first thing to check on any demand notice is the section quoted, because it determines both your exposure and your defence strategy.

Why you received a notice

Notices are almost always triggered by data the system already has. The most frequent reasons:

📉GSTR-1 vs 3B mismatchSales declared in GSTR-1 don't match tax paid in GSTR-3B.

🧾ITC vs GSTR-2B mismatchInput credit claimed exceeds what suppliers reported in 2B.

🚫Non-filing of returnsOne or more GSTR-1/3B not filed by the due date.

🔄RCM not paidReverse-charge liability not discharged on notified supplies.

📊Turnover mismatchGST turnover differs from income tax return or e-way bill data.

💳Excess refund claimRefund claimed appears ineligible or overstated.

🏭Wrong HSN / rateIncorrect HSN code or tax rate applied on supplies.

⏰ITC claimed lateCredit availed beyond the permitted time limit.

🔍Random scrutiny / auditSelected for routine departmental scrutiny or audit.

Business owner consulting a Chartered Accountant about a GST notice in Delhi NCR

A reply filed wrong is worse than no reply. One properly drafted response can close a notice for good.

How to reply — step by step

Every notice is answered online on the GST portal. The process is the same regardless of notice type:

Read & decode the notice

Note the form number, DIN, the exact issue, the section quoted, the amount involved and the reply deadline. Verify the DIN on the portal to confirm it's genuine.

Gather your evidence

Pull the relevant returns, invoices, ledgers, GSTR-2B, reconciliation statements, payment challans and any supporting case law. Your reply is only as strong as the documents behind it.

Draft a point-by-point reply

Address every allegation separately, factually and politely. Reference each supporting document as a numbered annexure and cite the relevant section, rule or judgment that supports your position.

File online before the deadline

Log in → Services → User Services → View Notices and Orders → open the notice → file the reply in the prescribed form with attachments. Submit with DSC or EVC.

Attend any personal hearing

For SCN and demand matters, a personal hearing may be granted. Attend it (or have your CA attend) — non-appearance lets the officer decide ex-parte.

Save the acknowledgement & track

Keep the ARN and filed reply. Track the notice status until it's dropped (or an order is passed) and be ready for any follow-up.

Things to keep in mind — do's & don'ts

✓ Do

Reply before the deadline — even a request for extension is better than silence
Verify the DIN to confirm the notice is genuine
Answer every point raised, individually and factually
Attach clear, numbered documentary evidence
Cite relevant sections, rules and case law
Keep the tone professional and respectful
Retain the ARN and acknowledgement of your reply
Consult a CA early for scrutiny, SCN and demand notices

✕ Don't

Ignore the notice or miss the deadline
Reply emotionally, vaguely or argumentatively
Admit liability casually without checking the facts
Submit unsupported claims with no documents
Pay a demand blindly without verifying its correctness
Reply offline when online filing is required
Hide or misstate facts — section 74 penalties are severe
Wait until the last day to start drafting

Ready-to-use reply template

A general-purpose structure for replying to a scrutiny or show cause notice. Adapt the bracketed parts to your case — and always have a professional review before filing a reply to a serious notice.

📝 GST Notice Reply — Template

To, The Proper Officer / Assistant Commissioner [Ward / Range / Circle], [State] GST Subject: Reply to Notice in Form [______] bearing DIN [______] dated [DD/MM/YYYY] — GSTIN [______] Respected Sir/Madam, 1. We, M/s [Business Name], holding GSTIN [______], are in receipt of the captioned notice dated [____] issued under Section [____] of the CGST Act, 2017, calling upon us to [briefly state what the notice asks]. 2. At the outset, we respectfully submit that we are a compliant taxpayer and place on record the following submissions, point-wise, for your kind consideration. 3. Reply on merits: (a) With reference to [issue 1, e.g. GSTR-1 vs 3B mismatch of Rs. ____], we submit that [explanation]. The relevant reconciliation is enclosed as Annexure-1. (b) With reference to [issue 2, e.g. ITC of Rs. ____], we submit that the credit is valid and supported by tax invoices and reflects in GSTR-2B, enclosed as Annexure-2. 4. In view of the above submissions and supporting documents, the discrepancy/demand proposed in the notice does not survive, and we request that the proceedings be dropped. 5. We rely on [relevant section / circular / judgment, if any] in support of our position. 6. We request an opportunity of personal hearing before any adverse order is passed, in the interest of natural justice. Enclosures: Annexure-1: [Reconciliation statement] Annexure-2: [Tax invoices / GSTR-2B extract] Annexure-3: [Payment challans, if any] Thanking you, For M/s [Business Name] [Authorised Signatory] Name: [____] Designation: [____] Date: [____] Place: [____]

⚠️ This is a general template for guidance only. Each notice needs a fact-specific reply — the wrong submission can confirm a demand. For ASMT-10, DRC-01 and section 74 notices especially, have a Chartered Accountant draft or review your reply.

What happens if you don't reply

Silence is the costliest response of all. Here's what follows a missed deadline:

⚖️

Best-judgment assessmentThe officer assesses your liability on available data — usually at the highest figure — and confirms the full demand.

💸

Demand + interest + penaltyTax confirmed with 18% interest and penalty — 10% of tax or ₹10,000 under section 73, rising to 100% of tax under section 74 for fraud cases.

🚫

Registration cancelledNon-response to REG-17 can cancel your GSTIN, halting your ability to do business legally.

🔒

ITC blockedInput tax credit can be blocked under Rule 86A, freezing working capital.

🏦

Bank attachment & recoveryProvisional attachment of bank accounts and recovery from debtors under DRC-13.

📅

Lost appeal rightsDefending later becomes far harder and costlier — appeals require pre-deposit of disputed tax.

30 frequently asked questions

The questions businesses across Hapur, Ghaziabad, Noida and Delhi ask us when a GST notice arrives:

Got a GST notice? Don't reply alone.

A correctly drafted reply can close a notice; a wrong one can confirm a demand. Lalit Tyagi & Company drafts, files and defends GST notice replies — scrutiny, show cause, demand and audit — for businesses across Hapur, Ghaziabad, Noida and Delhi NCR.

📞 Call +91 74179 91060 💬 WhatsApp Your Notice ✉️ Request Urgent Callback