A GST notice lands and the first instinct is panic. It shouldn't be. The department issues ASMT-10 notices as routine scrutiny — the vast majority close at the first reply, without any demand being confirmed.
What determines whether your case closes quietly or escalates into a formal demand is rarely the underlying facts. It is whether you responded — on time, addressing the right points, with the right documents attached.
Five notice types — at a glance
From FY 2024-25, Section 74A replaces the old Section 73/74 dual structure — one unified provision, 42-month notice window, and nil penalty if you pay within 60 days of the SCN.
Frequently Asked Questions
To reply to an ASMT-10 GST scrutiny notice, log in to the GST portal, navigate to Services > User Services > View Additional Notices, locate the ASMT-10 notice, and file your response in Form ASMT-11. You must reply within 30 days of receiving the notice. Attach supporting documents like GSTR-2A reconciliation, invoices, or bank statements to explain the discrepancy flagged by the department.
ASMT-10 is a scrutiny notice issued when the GST officer finds discrepancies in your filed returns — it is not yet a demand. DRC-01 is a formal Show Cause Notice (SCN) indicating an actual tax demand. ASMT-10 is replied to via ASMT-11, while DRC-01 is replied to via DRC-06. DRC-01 is more serious and can lead to confirmed demand and penalties if not addressed properly within 30 days.
If you fail to reply to a GST notice like ASMT-10 or DRC-01 within the stipulated 30 days, the GST officer can proceed ex-parte and issue a best judgment assessment or confirm the tax demand along with applicable interest and penalties. Missing deadlines significantly weakens your case. You may apply for an extension by submitting a request on the GST portal before the deadline expires.
Section 74A, effective from FY 2024-25, replaces the earlier dual framework of Section 73 (non-fraud) and Section 74 (fraud/suppression) with a single unified provision for issuing GST demand notices. It provides a 42-month window for issuing notices and offers a significant relief — if the taxpayer pays the full tax demand within 60 days of receiving the SCN, the penalty is reduced to nil, encouraging early voluntary compliance.
REG-17 is a Show Cause Notice issued when the GST department proposes to cancel your GST registration. You must file a reply in Form REG-18 within 7 days of receiving REG-17 on the GST portal. Attach proof of return filings, tax payments, and business continuity documents. A strong, timely reply with correct supporting evidence can prevent cancellation. Ignoring this notice results in automatic cancellation of your GSTIN.