GST Basics

Received a GST notice? What it means and what to do

3 min read Updated 03 Oct 2026 4 views

AI summary

Identify the notice by its form number, know the reply deadline and respond the right way before it becomes a demand.

7 sections 3 steps

General legal information, not legal advice. Timelines are indicative and depend on your facts. Consult an advocate or CA before acting on a notice, dispute or recovery.

First three steps

Confirm it is genuine. Log in to the GST portal and open Services > User Services > View Notices and Orders. Central GST notices carry a DIN that you can verify on the CBIC website.
Note the form number and the reply date. The form tells you exactly what the officer wants.
Don't ignore it. An unanswered notice leads to an order without hearing you, a demand, or cancellation of registration.

Common notices

Form	What it means	Reply time	How to respond
GSTR-3A	A return has not been filed	15 days	File the pending return with late fee and interest
REG-03	Officer needs clarification on your registration application	7 working days	Reply in REG-04
REG-17	Show cause notice to cancel your registration	7 working days	Reply in REG-18; file pending returns first
ASMT-10	Scrutiny found discrepancies in your returns	30 days	Explain in ASMT-11; pay accepted amounts in DRC-03
DRC-01B	Tax in GSTR-1 is higher than tax paid in GSTR-3B	7 days	Pay the gap in DRC-03 or explain in Part B
DRC-01C	ITC in GSTR-3B is higher than ITC in GSTR-2B	7 days	Reverse or pay, or explain in Part B
DRC-01A	Intimation of tax payable before a formal notice	Date given	Pay in DRC-03 or disagree in Part B
DRC-01	Formal show cause notice	Usually 30 days	Reply in DRC-06 with documents and ask for a hearing
DRC-07	Order confirming the demand	—	Pay, or appeal within 3 months

Section 73, 74 or 74A?

Up to FY 2023-24: section 73 applies when there is no fraud, and section 74 when fraud or wilful suppression is alleged. Section 74 has a longer time limit and heavier penalties.
From FY 2024-25: section 74A covers both. The notice must be issued within 42 months of the annual return due date, and the order within 12 months of the notice (extendable by 6 months).
Penalty without fraud: 10% of the tax or ₹10,000, whichever is higher. If you pay the tax and interest within 60 days of the notice, no penalty applies.
Penalty with fraud: up to 100% of the tax, reduced if you pay early.

How to write a strong reply

Answer each point in the order of the notice paragraphs.
Attach evidence: invoices, e-way bills, ledgers, bank proof, GSTR-2B and your reconciliation.
Quote the section, rule or circular you rely on.
Ask for a personal hearing before any adverse order.
Pay what you agree with in DRC-03 and link it to the notice, which stops interest on that part.
File on the portal and save the acknowledgement (ARN).

If the order goes against you

File an appeal in APL-01 within 3 months of the order. Pay the tax you admit plus 10% of the disputed tax as pre-deposit (subject to a cap). Penalty-only appeals also need a 10% pre-deposit. Recovery of the balance is stayed once the appeal is filed.