Common GST notices and how to respond

First steps when a notice arrives

1. Log in to gst.gov.in and open the notice under the notices and orders section. Notices are also emailed, but the portal copy is the one that counts.
2. Note the form number, the tax period, the amount and the reply-by date.
3. Check the notice carries a document identification number (DIN) or is issued through the portal.
4. Pull the matching data from your books: sales register, purchase register, GSTR-1, GSTR-3B and GSTR-2B for that period.
5. Reply on the portal before the date, even if only to ask for more time with reasons.

The notices small businesses see most

Mismatch notices: working out the difference

DRC-01B example. For a month your GSTR-1 shows output tax of ₹2,40,000 but GSTR-3B shows ₹2,15,000. The ₹25,000 gap triggers the intimation. Common genuine reasons:

• An invoice reported in GSTR-1 was cancelled and the tax was correctly left out of GSTR-3B, but the GSTR-1 amendment was not made.
• Tax on that invoice was paid in an earlier month's GSTR-3B (for example, on an advance).
• A credit note was reduced in GSTR-3B but reported in a later GSTR-1.

List each item with invoice number and amount. If no explanation holds, pay the difference with interest. The same logic applies to DRC-01C on ITC; matching ITC to GSTR-2B is covered in reconciling GSTR-2B with the purchase register.

Scrutiny under ASMT-10

An ASMT-10 lists points the officer noticed, such as ITC higher than the purchase pattern suggests, e-way bill values higher than reported sales, or RCM not paid. Answer point by point. Attach reconciliations, not just statements. If you accept a point, pay through DRC-03 and quote it in your reply. If the officer is satisfied, the matter closes; otherwise further proceedings can follow.

Registration notices

REG-17 is often issued when returns have not been filed for a continuous period, or when the officer believes the place of business does not exist. File all pending returns first, then reply in REG-18 with proof of business: rent agreement, electricity bill, photographs of the premises and signboard. If registration has already been cancelled, a revocation application has its own time limit, so act quickly.

Mistakes that make it worse

• Ignoring a notice because 'the CA will see it'. The time limit runs regardless.
• Replying with a one-line denial and no reconciliation.
• Paying an amount through DRC-03 without linking it in the reply.
• Correcting the books but not the returns, so the next period triggers the same notice.

Time limits, forms and procedures change. Always follow the reply date and instructions on the notice itself. For anything beyond a simple mismatch, get your CA involved. This is general information, not tax advice. A planned GST audit preparation checklist also helps you stay ready.

Getting the figures together with Cashflow OS

Replying fast depends on finding invoices quickly. Cashflow OS lets you open the GSTR-1 view for the period from your Tally data and drill into bill-wise and HSN-wise detail, check the day book and party ledgers, and export reports to Excel or PDF for your CA, from any custom date range. The reply itself is filed on the GST portal.