GST Notices: A Calm Guide to Responding

GST notices arrive for reasons ranging from a small mismatch in returns to a serious allegation of tax evasion. The form of the notice tells you which it is. Knowing the notice types — and their statutory response periods — is the difference between a quick resolution and a costly escalation.

Common notices you'll see

ASMT-10 — discrepancy notice

Issued when the proper officer finds a mismatch between your returns. Response time: 30 days. Typically resolved with reconciliation statements and a brief explanation.

DRC-01 — show cause notice

Far more serious. This is a pre-recovery notice alleging a tax shortfall. Response time: 30 days. Requires a detailed legal reply, often with case law and reconciliations.

REG-17 — registration suspension

Notice proposing to cancel your registration, usually for non-filing of returns. Response time: 7 working days. Failing to respond often leads to suspension within days.

How to draft a reply

1. Read the notice carefully — note the sections invoked and the precise allegation

2. Gather supporting documents: returns, invoices, e-way bills, reconciliations

3. Draft a numbered reply addressing each allegation specifically

4. Attach evidence as annexures, indexed

5. File through the GST portal within the response window

The biggest mistake taxpayers make is ignoring a notice in the hope it will go away. It will not — but the consequences will arrive on a much worse timeline than the original notice.