GST Notices: Types and How to Respond

Introduction

A GST notice is an official communication from the tax authorities highlighting potential discrepancies or issues in your GST filings. Responding promptly and correctly is essential to avoid penalties or legal complications. To reply to a GST notice online, log in to the GST portal and navigate to Services > User Services > View Notices and Orders. Click the Reply option next to the relevant notice to initiate the response process. This allows you to address the concerns raised by the authorities within the prescribed timeframe. This article provides detailed guidance on understanding and replying to GST notices effectively.

What is a GST Notice?

A GST notice is an official communication issued by the Indian tax authorities to a business registered under the Goods and Services Tax (GST) system. These notices are sent to inform taxpayers about potential discrepancies, non-compliance, or issues in their GST filings. They can relate to a range of matters, including late or incomplete GST return submissions, unpaid taxes, or irregularities in claiming Input Tax Credit (ITC). Timely and accurate responses to GST notices are essential to avoid penalties, ensure smooth compliance, and maintain good standing with the tax authorities.

Common Reasons for Receiving a GST Notice

Businesses may receive a GST notice for several reasons, including the following nine major causes:

Non-filing or Delayed Filing of GST Returns:
Failing to file returns such as GSTR-1 or GSTR-3B on time can trigger a notice from the tax authorities.
Discrepancies in Input Tax Credit (ITC) Claims:
Errors in ITC claims can lead to notices. Common issues include:
- Excess ITC claims: Claiming more credit than supported by invoices.
- Mismatched ITC claims: Differences between ITC claimed in GSTR-3B and the supplier’s GSTR-2A.
Mismatch Between GSTR-1 and GSTR-3B:
GSTR-1 reports outward supplies, while GSTR-3B summarises tax liability and ITC. Inconsistencies between these returns can alert GST authorities.
Errors in Tax Payment:
Notices may arise due to incorrect GST calculations or underpayment, including:
- Miscalculations in tax computation
- Misclassification of goods or services
- Misinterpretation of applicable tax rates
Non-compliance with E-way Bill Requirements:
Businesses transporting goods above threshold limits must generate e-way bills. Non-compliance or incorrect documentation can trigger a notice.
High-Value Transactions:
Transactions involving significant tax liabilities or ITC claims are closely monitored. Discrepancies in such transactions often result in scrutiny.
Mismatch in GSTIN or PAN:
Simple administrative errors, such as incorrect GST Identification Number (GSTIN) or PAN, can also lead to GST notices. Cross-verification is essential.
Non-compliance with GST Audit:
Certain businesses are required to undergo GST audits. Failure to comply with audit requirements or submit reports on time can result in notices and penalties.
Inconsistencies in Reporting Across Platforms:
Discrepancies between filings or reporting portals may trigger notices, such as:
- GSTR-1 vs E-way Bill Portal: Outward supplies declared in GSTR-1 do not match the e-way bill data.
- GSTR-1 vs ICEGATE: Differences between exports reported in GSTR-1 and customs data on the ICEGATE portal.

Types of GST Notices

The following table summarizes the various types of GST notices, their purposes, response methods, and deadlines for replying.

Sl. No.	Type of GST Notice	Description	How to Respond	Time Limit
1	GSTR-3A (Default Notice)	For taxpayers who haven’t filed GST returns	File missing returns along with applicable penalty and interest	Within 15 days of receiving the notice
2	CMP-05 (Show Cause Notice for Composition Dealer)	Queries eligibility as a composition dealer	Respond via CMP-06, justifying eligibility	Within 15 days of receiving SCN
3	REG-03 (Clarification Notice for Registration)	Seeks clarification on registration information	Reply through REG-04 with required details	Within 7 days of receiving notice
4	REG-17 (Show Cause Notice for Cancellation)	Requests reasons why GST registration shouldn’t be cancelled	Submit response via REG-18 justifying continuation of registration	Within 7 days of receiving notice
5	REG-23 (Show Cause Notice for Termination)	Seeks clarification on why registration termination should stand	Reply via REG-24	Within 7 days of receiving notice
6	REG-27 (Application for Transfer Notice)	Issued if provisional registration application is incomplete or not filed	Apply through REG-26 and appear before GST authorities	As per specified timeframe
7	PCT-03 (Show Cause Notice for Misconduct)	Issued for misconduct by a GST practitioner	Respond as instructed in the SCN within the mentioned time	As mentioned in the SCN
8	RFD-08 (Show Cause Notice for Refund)	Questions why a claimed GST refund should not be denied	Reply using RFD-09	Within 15 days of receiving SCN
9	ASMT-02 (Provisional Assessment Notice)	Requests additional information for provisional assessment	Submit details via ASMT-03 with requested documents	Within 15 days of receiving notice
10	ASMT-06 (Final Assessment Notice)	Requests additional information for final assessment	Submit details via ASMT-07 with requested documents	Within 15 days of receiving notice
11	ASMT-10 (Discrepancy Notice)	Highlights discrepancies in submitted returns	Respond via ASMT-11 explaining discrepancies	Within timeframe mentioned (usually 30 days)
12	ASMT-14 (Show Cause Notice for Best Judgment Assessment)	Issued under Section 63 for assessment based on best judgment	Respond using ASMT-15 and appear before GST authority	Within 15 days of receiving SCN
13	ADT-01 (Audit Notice)	Informs about an upcoming GST audit	Appear in person or provide relevant documents as instructed	As per specified timeframe
14	RVN-01 (Revision Order Notice)	Issued before passing a revision order on appeals	Reply via RVN-02 and/or appear before GST authority	Within 7 working days of receiving notice
15	Enquiry Notice by Directorate of Anti-Profiteering	Seeks information when ITC benefits are not passed on	Cooperate and provide necessary evidence	As mentioned in the notice
16	DRC-01 (Show Cause Notice for Demand)	Issued for short-paid or unpaid tax	Respond via DRC-03 and pay demanded tax with interest/penalty	Within 30 days of receiving notice
17	DRC-10 & DRC-17 (Demand Order & Recovery Notices)	Relates to recovery of tax dues	Pay outstanding demand via DRC-09	As mentioned in the notice (usually ≥15 days)
18	DRC-11 (Successful Bidder Notice)	Issued to successful bidder in tax recovery auction	Make full payment of bid amount	Within 15 days of auction
19	DRC-13 (Third-Party Recovery Notice)	For recovery of outstanding tax from a third party	Pay as per notice and respond via DRC-14	Not Applicable
20	DRC-16 (Attachment & Sale Notice)	Informs about attachment/sale of property or shares to recover dues	Transfer or charging of attached property not allowed	Not Applicable

How to View or Download GST Notices

The GST portal provides an easy way to access notices issued by GST authorities. Follow these steps:
Step 1: Access the GST Portal
Visit the official GST portal.
Step 2: Log in with Your Credentials
Enter your valid GST login credentials (username and password).
Step 3: Navigate to the “Notices and Orders” Section
There are two ways to access notices:
Option 1: Using the Services Menu
Click on the Services tab on the dashboard.
Select User Services from the dropdown menu.
Click View Notices and Orders.
Option 2: Using the Dashboard Button
Look for a button labeled View Notices and Orders directly on the dashboard.
Click the button to access your notices.
Step 4: View and Download Notices
The portal displays all notices issued to you during the past year.
Notices are shown in chronological order, with the most recent appearing first.
You can download each notice for your records.

How to Reply to a GST Notice Online

Responding to a GST notice online involves the following steps:

1. Access the GST Portal

Visit the official GST portal.
Log in using your GST credentials (username, password, and Captcha).

2. Locate the Notice

Navigate to the Dashboard.
Under Services, select User Services → View Additional Notices/Orders.
This section lists all notices issued against your GSTIN.

3. Review Notice Details

Click the Document hyperlink to download and review the notice.
Understand the issue raised, the type of notice, and the due date for reply.

4. Prepare Your Reply

Determine the required response, which may involve providing additional information, clarifying discrepancies, or contesting claims.
Gather supporting documents (invoices, purchase orders, bank statements, etc.).
For complex matters, consider consulting a qualified GST professional.

5. Submit Your Reply Online

Click the Reply button next to the relevant notice under Due Date of Reply.
Draft your response, addressing all points raised in the notice.
Attach supporting documents.
Sign digitally using your DSC (Digital Signature Certificate) or e-signature.
Submit the reply and retain a copy for your records.

Valid Modes of Sending GST Notices

As per Section 169 of the CGST Act, GST notices must be served through legally recognized channels:

Personal Delivery – Directly to the taxpayer or authorized representative.
Registered Post / Speed Post / Courier – Sent to the taxpayer’s last known business address with acknowledgment.
Electronic Communication – Sent to the registered email address.
GST Portal Posting – Accessible upon logging into the taxpayer’s account.
Publication in a Local Newspaper – Circulating in the area of the taxpayer’s last known residence.
Affixing Notice – On the taxpayer’s premises if other modes are not feasible.
Tax Office Notice Board – As a last resort if all other methods fail.

Consequences of Not Replying to a GST Notice

Failing to respond to a GST notice can lead to:

Penalties for non-compliance
Delays in processing refunds or resolving issues
Legal actions to recover dues
Cancellation of GST registration

Timely response is crucial to avoid these consequences.

Basic Format for Responding to a GST Show Cause Notice (SCN)

[Date]

To,
The [Name of Authority],
[Address of Authority]

Subject: Response to Show Cause Notice No. [SCN Number] dated [SCN Date]

Respected Sir/Madam,

I acknowledge the receipt of Show Cause Notice (SCN) No. [SCN Number] dated [SCN Date]. After reviewing the notice, I submit my response as follows:

1. Introduction and Acknowledgment

Mention the date and mode of receipt of the SCN.
Express appreciation for the opportunity to respond.

2. Explanation of Facts

Provide a brief overview of events leading to the alleged violations.
Include relevant supporting evidence.

3. Legal Provisions and Analysis

Cite applicable statutory provisions and case laws supporting your position.

4. Rebuttal of Allegations

Address each allegation in the SCN with factual and legal clarifications.

5. Conclusion and Request

Summarize arguments and request withdrawal or leniency.
Seek a personal hearing if necessary.
Express willingness to provide further information.

I hereby affirm that the statements made in this response are true and accurate to the best of my knowledge and belief.

Thank you.

Yours sincerely,
[Name and Designation]
[Address]
[Contact Details]

About the Author

Ravi

Ravi is a skilled legal writer who transforms complex laws into clear, practical guidance. He helps entrepreneurs understand and manage their legal responsibilities, enabling them to build confident, compliant, and sustainable businesses.