Received a GST notice? Types of notices and how to reply

A GST notice is not always a demand. Many notices only ask you to explain a mismatch, and a clear, documented reply at that stage often closes the matter. Trouble usually starts when a notice is ignored, the reply window passes, or a reply is filed without supporting working. Below are the notices our Rohini office sees most often, what each one means and how to respond.

First steps when a GST notice arrives

• Download the notice from the GST portal (Services → User Services → View Notices and Orders) and note the reference number, date and section.
• Note the reply due date printed on the notice – the portal reply must be filed before it.
• Identify the period and the issue: return mismatch, input tax credit (ITC), e-way bill, registration or audit.
• Collect GSTR-1, GSTR-3B, GSTR-2A/2B, GSTR-9/9C, purchase and sales registers, e-way bills and bank statements for that period.
• Do not pay or accept a liability in a hurry. First reconcile the figures and check whether the difference is real.

Common GST notices and what they mean

How to draft a reply that works

• Answer every point. Take each allegation or figure in the notice and respond to it separately, with numbers.
• Attach a reconciliation. Most notices arise from differences between GSTR-1, GSTR-3B, GSTR-2B and the books. A month-wise, supplier-wise working is the strongest evidence.
• Support it with documents – invoices, e-way bills, debit/credit notes, bank proof of payment to suppliers, and amendments made in later returns.
• Cite the law correctly – the relevant section, rule, circular or court decision where it supports your position.
• Ask for a personal hearing on a show-cause notice. Section 75(4) requires a hearing where you request one or where an adverse decision is contemplated.
• Keep proof of filing – save the acknowledgement of every reply filed on the portal.

Paying early can reduce or remove penalty

In a show-cause notice that does not allege fraud or suppression, paying the tax with interest within 60 days of the notice generally concludes the proceedings without penalty. In fraud or suppression cases the penalty is reduced, not removed, the earlier you pay. Whether to pay or contest depends on the strength of your documents – take that decision with your reconciliation in hand.

If the order goes against you

An adverse order in DRC-07 can be appealed before the Appellate Authority in Form APL-01 within three months, with a pre-deposit of 10% of the disputed tax. A further appeal lies to the GST Appellate Tribunal (GSTAT). Errors apparent on the record can be corrected through rectification under Section 161.

Frequently asked questions