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

Ignoring ASMT-10 leads to DRC-01 (Show Cause Notice). Ignoring DRC-01 leads to DRC-07 (final demand order) and recovery proceedings — bank attachment, property attachment, and in fraud cases, prosecution under Section 132 CGST Act.

How many days do I have to respond to an ASMT-10?

30 days from the date of the ASMT-10 notice to file your reply in Form ASMT-11 on the GST portal. You can request an extension of up to 15 additional days.

What is the difference between ASMT-10 and DRC-01?

ASMT-10 is an early-stage scrutiny notice under Section 61 — it points out discrepancies and gives you a chance to explain before formal proceedings begin. DRC-01 is a formal Show Cause Notice — adjudication has started and a tax demand has been officially raised.

Section 74A is a new unified provision effective from FY 2024-25, replacing Section 73 and 74. Single 42-month notice period. Payment within 60 days of SCN means nil penalty.

GST Notice Response Guide 2025 — ASMT-10, DRC-01, SCN

Received a GST Notice? Here's What to Do

Receiving a GST notice does not automatically mean you have done something wrong. The department routinely scrutinises returns and issues notices when it detects discrepancies. Taxpayers who ignore notices end up in serious trouble — those who respond properly get most cases closed at the initial stage itself.

This guide explains why notices are issued, which form is used for which type of notice, response deadlines, documents required, and how to file a reply on the GST portal.

⚡ Important — Section 74A (FY 2024-25 onwards)

For FY 2024-25 onwards, the dual Section 73 (non-fraud) and Section 74 (fraud) structure has been replaced by a single unified provision — Section 74A. The notice period is 42 months. Payment within 60 days of the SCN significantly reduces penalty. For FY 2023-24 and earlier, Section 73/74 continues to apply.

Notice Types — Which Form Means What

Notice Identifier

Identify your notice in 3 steps

What is the form number on your notice?

ASMT-10

Scrutiny Notice — Discrepancy in GST returns

Section 61, CGST Act · Early stage

30 days to reply

The most common GST notice. The department has found a mismatch between your GSTR-1 and GSTR-3B or GSTR-2B — excess ITC claimed, a turnover difference, or a tax payment shortfall. This is not a formal demand — it is a request for explanation.

Reply form: ASMT-11 · If satisfied: ASMT-12 (closed) · If unsatisfied: DRC-01

DRC-01

Show Cause Notice (SCN) — Formal tax demand

Section 73 / 74 / 74A · Formal adjudication

30 days to reply

Issued after ASMT-10 or directly. The department is formally stating that tax, interest and penalty is due. Adjudication proceedings have begun. Ignoring DRC-01 results in a final demand order (DRC-07) and recovery action.

Reply form: DRC-06 · Voluntary payment: DRC-03 · Final order: DRC-07

REG-03

Registration — Additional documents sought

Rule 9 / Rule 19 · Registration verification

7 working days

Issued after a GST registration application or amendment. The officer requires additional documents — address proof, business proof, or photographs. Failure to reply may result in rejection.

Reply form: REG-04 · Rejection order: REG-05

REG-17

Show Cause — GST registration cancellation

Section 29 · Cancellation proceedings

7 working days

The department intends to cancel your GST registration — reasons include non-filing of returns, cessation of business, or detected irregularities. Failure to reply results in a REG-19 cancellation order.

Reply form: REG-18 · Cancellation order: REG-19

CMP-05

Composition Scheme — Eligibility verification

Section 10 · Composition dealer

15 days

Issued to a composition dealer to verify eligibility for the scheme, or to initiate withdrawal from it.

Reply form: CMP-06

Why GST Notices Are Issued — Common Triggers

GSTR-1 vs GSTR-3B mismatch — Difference between supplies declared and tax paid
Excess ITC claim — ITC claimed exceeds what is available in GSTR-2B
ITC from cancelled or non-filer suppliers — Input credit from suppliers who have not filed returns
E-way bill vs return mismatch — E-way bill generation significantly higher than supplies declared
Non-filing of returns — GSTR-1 or GSTR-3B not filed or filed late
Turnover discrepancy — GST turnover does not match income tax returns or Form 26AS
Reverse Charge liability — RCM liability not properly discharged

How to Handle an ASMT-10 — Step by Step

Read the notice carefully

Note the tax period, GSTIN, nature of the discrepancy, the demanded amount and the reply deadline. Identify specifically what mismatch the officer has pointed out.

Reconcile with your records

Compare GSTR-1, GSTR-3B, GSTR-2B and books of accounts. Account for credit notes, debit notes and amendments that the system may have missed. Review your ITC ledger.

Decide — agree or contest

If the discrepancy is valid: Pay the tax and interest via Form DRC-03. Attach a copy with your ASMT-11 reply. If the discrepancy is incorrect: Prepare a point-wise explanation with supporting documents.

Gather your documents

Compile invoices, GSTR filings, bank statements, payment challans, reconciliation statements and supplier correspondence for the relevant period.

File ASMT-11 on the GST portal

Go to Services → User Services → View Notices & Orders → Reply. Upload supporting documents (up to 4 files, 5 MB each). Select "Yes" for personal hearing if required. Verify using DSC or EVC and submit.

Save the acknowledgement

After submission, save the Reference Number (RFN). Monitor your case status under the REPLIES tab in Case Details on the GST portal.

Documents Checklist — ASMT-10 / DRC-01 Reply

GSTR-1, GSTR-3B returns for the relevant period
GSTR-2B (ITC auto-populated statement)
Purchase invoices for ITC claimed
Sales invoices / e-way bills
Bank statements showing payments
DRC-03 payment challan (if partial payment made)
Reconciliation statement — GSTR-1 vs books, GSTR-3B vs books
Credit notes / debit notes issued or received
Supplier correspondence (if supplier filed returns late)

Deadline Calculator

Enter notice date to get the exact reply deadline

Notice date

Notice type

Reply deadline

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Consequences of Ignoring a GST Notice

Ignoring ASMT-10: The officer will issue a Show Cause Notice (DRC-01) under Section 73, 74 or 74A.
Ignoring DRC-01: A final demand order (DRC-07) will be issued. Recovery proceedings begin — bank account attachment and property attachment become possible.
Fraud cases (Section 74/74A): Penalty up to 100% of tax evaded. Prosecution under Section 132 of the CGST Act is also possible.

Section 73 vs 74 vs 74A — Penalty Structure

Provision	Applicable For	Notice Period	Penalty — before SCN	Penalty — within 30/60 days of SCN
Section 73	Non-fraud (FY ≤ 2023-24)	3 years from annual return due date	Zero	Zero
Section 74	Fraud / suppression (FY ≤ 2023-24)	5 years from annual return due date	15% of tax	25% of tax
Section 74A	All cases (FY 2024-25 onwards)	42 months from annual return due date	Zero	Zero (within 60 days)

Penalty Estimator

Calculate penalty based on tax demand and applicable section

Tax demand (₹)

Section

Do's and Don'ts

✓ What You Should Do

Reply before the deadline
Address every point raised in the notice
Attach all supporting documents
Prepare a proper reconciliation statement
If partially liable, make voluntary payment via DRC-03
Request a personal hearing and use it
Save the RFN acknowledgement

✗ What You Should Not Do

Do not ignore the notice
Do not submit a generic or vague reply
Do not reply without attaching documents
Do not miss the deadline
Do not handle complex cases without a CA
Do not attempt informal arrangements with the officer

Watch out for credit notes and amendments: A common reason for ASMT-10 discrepancies is that the system does not account for credit notes, debit notes and amendments already made. Your GSTR-1 vs GSTR-3B mismatch may actually be explained by valid credit notes. Clearly demonstrate this in your reconciliation statement.

Frequently Asked Questions

ASMT-10 and DRC-01: 30 days. REG-03 and REG-17: 7 working days. CMP-05: 15 days. You can apply for an extension of up to 15 additional days. Always check the specific deadline mentioned in the notice.

Yes, absolutely. Ignoring ASMT-10 leads to DRC-01. Ignoring DRC-01 leads to DRC-07 — a final demand order — after which recovery proceedings begin, including possible bank account or property attachment. In fraud cases, prosecution under Section 132 CGST Act is also a possibility.

ASMT-10 is an early-stage scrutiny notice — it only points out a discrepancy and gives you a chance to explain. A proper reply can close the case at this stage. DRC-01 is a formal Show Cause Notice — adjudication has started and a tax demand has been officially raised. DRC-01 requires a strong, well-documented reply.

For simple cases — a clear reconciliation error — you can handle it yourself with proper documentation. For complex cases — large ITC claims, fraud allegations, multiple tax periods, or DRC-01 stage — always consult a CA or GST practitioner. A professionally drafted reply often prevents escalation to DRC-07.

DRC-07 is the final demand order. You can appeal against it before the Appellate Authority (Commissioner Appeals) within 3 months. A mandatory pre-deposit of 10% of the disputed tax amount is required (Section 107). Professional assistance is strongly recommended.

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. For specific cases, please consult a qualified CA or GST practitioner. Book a professional consultation →