GST Notices in India: A Complete Guide for Taxpayers

The Goods and Services Tax (GST) system in India mandates strict compliance, and discrepancies in filings or documentation often lead to GST notices from tax authorities. These notices are formal communications requiring taxpayers to clarify, rectify, or pay dues. Ignoring them can result in penalties, prosecution, or cancellation of GST registration. This article simplifies GST notices, their types, required documents in Gujarat, and actionable steps to resolve them.Understand the types of GST notices, required documents, and step-by-step responses to avoid penalties. Stay compliant with this comprehensive guide.

What is a GST Notice?

A GST notice is a legal document issued by tax authorities under the CGST Act, 2017, to address discrepancies in returns, unpaid taxes, or non-compliance. Notices are sent electronically via the GST portal and must be responded to within stipulated timelines to avoid adverse consequences

Common Types of GST Notices and How to Respond

1. Scrutiny Notice (ASMT-10)

• Purpose: Issued under Section 61 for mismatches in GST returns (e.g., GSTR-1 vs. GSTR-3B, ITC claims in GSTR-3B vs. GSTR-2A/2B)

• Response: Submit a reply in Form ASMT-11 with explanations or pay dues within 30 days

2. Show Cause Notice (DRC-01)

• Purpose: Demands unpaid taxes, often due to short payment, wrongful ITC claims, or fraud. Sent under Section 73 (bona fide errors) or Section 74 (fraudulent cases) 

• Response: File Form DRC-03 to pay dues or submit a rebuttal in Form DRC-06 within 60 days 

3. Registration-Related Notices

• REG-03: Requests additional documents during GST registration. When we apply for New GST Regsitration in Gujarat, if place is rented then officer request for addtional documents like Sale deed, Index 2 Copy or Property receipt. In Some case we have to provide notarized documentsa. This can be very from state to state. Reply via Form REG-04 within 7 days. After providing reply of Notice officer will came to visit principal place of business and also capture some images of shops with owner in Gujarat. 

• REG-17: Threatens registration cancellation. Respond with Form REG-18 within 7 days 

4. Demand Notice (GSTR-3A)

• Purpose: Sent to non-filers of GST returns (GSTR-1, GSTR-3B).

• Response: File pending returns with late fees within 15 days to avoid a best judgment assessment

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5. Audit Notice (ADT-01)

• Purpose: Triggers a GST audit under Section 65.

• Response: Submit records like invoices, bank statements, and tax challans within the timeline specified

Consequences of Ignoring GST Notices

• Penalties: Up to 10% of the tax due or ₹10,000 (whichever is higher) 

• Prosecution: For fraud cases, imprisonment up to 5 years.

• Registration Cancellation: Automatic cancellation if replies are not submitted and also fine can be imposed.

Tips to Avoid GST Notices

1. File Returns Timely: Avoid delays in GSTR-1, GSTR-3B, and annual returns.

2. Reconcile Data: Match GSTR-1 with e-way bills and GSTR-3B with GSTR-2A/2B.

3. Maintain Records: Preserve invoices, delivery challans, and payment proofs for 6 years 9.

4. Use Professionals: Authorize CAs or GST practitioners via Letter of Authorization

Recent Updates (2024–2025)

• Extended Deadlines: Taxpayers now have 60 days (previously 30) to pay dues under Section 74A.

• Aadhaar Authentication: Mandatory for revoking cancelled registrations