A GST notice is a request with a deadline, not a verdict. Most can be closed with a clear, documented reply, but an ignored notice can turn into a demand order with interest and penalty. Notices appear on the GST portal under Services, User Services, View Notices and Orders, and replies are filed on the portal.
Common GST notices and what they ask for
| Notice | What it means | Reply |
|---|---|---|
| GSTR-3A | A return has not been filed | File the pending return, usually within 15 days |
| REG-03 | Clarification needed on a registration application | Reply in REG-04, usually within 7 working days |
| REG-17 | Show cause for cancellation of registration | Reply in REG-18, usually within 7 working days |
| ASMT-10 | Discrepancies found in scrutiny of returns (section 61) | Explain or pay in ASMT-11, usually within 30 days |
| ADT-01 | The department will audit your records (section 65) | Prepare and produce records on the dates given |
| DRC-01A | Intimation of tax due before a show cause notice | Pay in DRC-03, or submit objections |
| DRC-01 | Show cause notice under section 73, 74 or 74A | Reply in DRC-06 by the date stated in the notice |
| DRC-07 | Summary of a demand order | Pay, or appeal within three months |
The time allowed is stated in each notice and is the deadline that matters. Where more time is needed, ask for it in writing on the portal before the deadline.
Time limits for demand notices
| Period | Section | Time limit |
|---|---|---|
| FY 2017-18 to 2023-24, no fraud | 73 | Order within 3 years of the annual return due date; notice at least 3 months before that |
| FY 2017-18 to 2023-24, fraud or suppression | 74 | Order within 5 years of the annual return due date; notice at least 6 months before that |
| FY 2024-25 onwards | 74A | Notice within 42 months of the annual return due date; order within 12 months of the notice, extendable by up to 6 months |
In non-fraud cases, paying the tax and interest within the window allowed after the show cause notice (30 days under section 73, 60 days under section 74A) closes the matter without penalty. Check whether a notice was issued within its time limit before replying on merits.
How to prepare a reply
- Read the notice closely. Note the period, section, amount, the specific discrepancy and the deadline.
- Reconcile. Compare GSTR-1, GSTR-3B, GSTR-2B, e-way bills and your books for the period in question.
- Collect evidence. Invoices, payment proofs, contracts, credit notes and supplier confirmations.
- Decide the position. Accept and pay through DRC-03 with interest, accept in part, or contest with reasons.
- Reply point by point. Answer each allegation separately and attach the supporting documents.
- Ask for a personal hearing where the amount is significant or the facts need explaining.
- Keep the acknowledgement and track the matter until an order is passed.
Mismatches that trigger most notices
- Input tax credit claimed in GSTR-3B is higher than credit shown in GSTR-2B
- Outward supplies in GSTR-1 do not match GSTR-3B
- E-way bills generated without matching sales in returns
- Credit taken on blocked items, or from suppliers who did not file returns
- Reverse charge not paid on applicable services
This guide is general information and is not professional advice. Apply it to your facts with a qualified adviser.