Introduction
Receiving a notice from the GST department is sufficient to make any businessman jittery. You would naturally associate penalty, audit, or cancellation of your GST registration. But the reality is: GST notices are usual—and in the majority of cases, quite easily solved if you know how.
In this complete guide, we will take you through:
- What is GST notice and why is it sent?
- Most prevalent types of GST notices
- What every notice is claiming (in plain language)
- How to deal with them legally and efficiently
- How to avoid such notifications in the future
What is GST Notice
A GST notice is a formal notice given by the GST department when it finds any discrepancy or mismatch in your business details or in your tax return. It is one of the means by which the department seeks clarification, documentation, or informs you about an offence against the GST law.
You may be issued with a GST notice for
- Late or default lodgment of your GST returns
- Mismatch between your invoices and your returns
- Erroneous or incorrect Input Tax Credit (ITC) claims
- Non-compliance in obtaining registration under GST when required by law
- Misstating refund claims
Why You Cannot Ignore GST Notice
The majority of businessmen are of the opinion that notices are mistakes or can be ignored. However, not responding in time can lead to:
- Interest and charges
- Cancellation of your GST registration
- Audit or inspection
- Proceedings under law for GST
Better news: Most notices can be corrected by submitting corresponding documents and responses within time.
Most Popular GST Notices in India (Along With Legal Sections & Meaning)
These are short explanations of most of the frequently issued GST notices in simple English.
1. GSTR-3A: Notice for Non-Filing of Returns
- Launched when: You didn’t submit your GSTR-1 or GSTR-3B within time.
- It states: Your department is providing you with 15 days to upload your pending returns.
- What to do: Log in immediately to the GST portal and upload the concerned return. Fines would be levied, but proceedings could be avoided.
2. REG-03: GST Registration Clarification
- At issuance time: The officer requires more documents or details while registering under GST or while making amendments.
- What it means: Your application is incomplete or ambiguous.
- What to do: Submit the mandatory clarification on Form REG-04 within 7 working days.
3. ASMT-10: Mismatch of GST Returns
- When issued: You find mismatch of returns submitted, i.e., GSTR-1 and GSTR-3B, or GSTR-3B and GSTR-2A/2B.
- Meaning: Under-reporting or fraudulent claims of ITC are suspected by the department.
- What to do: Reconcile your returns. Submit response on ASMT-11 with calculations or pay the differential tax.
4. SHOW CAUSE NOTICE (SCN) – Section 73/74
- When issued: When there is a significant mismatch like tax evasion, bogus invoices, or incorrect ITC.
- What it means: Your department is asking you to state reasons why nothing should be done against you.
- What to do: Provide a written, documented reply. You may also be summoned for a personal hearing.
5. CMP-05: Composition Scheme Eligibility Check
- When issued: Your composition is above the threshold or you violated scheme conditions.
- What it means: They want to know whether you still qualify under the scheme or not.
- What to do: Fill Form CMP-06 along with supporting documents to establish your claim.
6. RFD-08: Notice of Refund Rejection
- If issued in case: Your claim of refund is incorrect or incomplete.
- What it means: The officer will reject your claim till you reply.
- What to do: Fill out Form RFD-09 to forward the missing information or documentation.
Step-by-Step Legal Guide for Responding to GST Notices
Follow is a step-by-step legal guide for responding to a GST notice properly:
Step 1: Carefully Read the Notice
- Type of notice, section of law, and response deadline must be stated.
- Clearly define the problem—either return, registration, refund, or ITC
2. Login to the GST Portal
- Go to www.gst.gov.in
- Login through your credentials
- Go to: Services → User Services → View Notices and Orders
Step 3: Create a Proper Reply
According to the type of notice:
- For late filing: File return at once
- For mismatches: Download GSTR-2A/2B, invoice matching, and correct return if required
- For ITC mismatch: Invoice, invoice receipt voucher, and cash receipt voucher
- For refund: Submit bank statements, bills of shipment, invoices, etc.
Step 4: Compose the Formal Answer
- Short and formal
- Quote from GST acts or legal codes
- Supporting documents (as scans as PDFs)
- Respond in the desired format (e.g., ASMT-11, REG-04, CMP-06)
Step 5: Submit Your Answer on Time
Most of the GST notices are short time-bound—7 to 30 days. Late response may invite automatic orders, fine, or cancellation.
Step 6: Attend Hearings (if necessary)
If there is SCN or some critical issues, you might be requested for a personal hearing. Always personally attend or authorize a GST practitioner to attend on your behalf.
Precautions to Avoid Future GST Notices
- File on Time: Late filing of GSTR-1 or GSTR-3B will trigger automatic notices.
- Keep Invoice Up to Date: Incorrect invoices are the most common cause of ASMT-10.
- GSTR-2B Match With ITC: Do not use ITC which has not been declared in 2B.
- Do Not Use Non-registered or Spurious Suppliers: Their non-compliance affects you.
- Renew Licenses and Registration Reminders on Time.
- Appoint a GST Specialist or Advisor: It minimizes errors and compliance is guaranteed.
Real-Life Example
Case: A Mumbai businessperson was served an ASMT-10 for a discrepancy of ₹4.5 lakhs in GSTR-1 and GSTR-3B.
Mistake. They never filed a belated return after a customer order cancellation.
Solution by Legal Dalal: Our team:
- Pinpointed the reason
- Updated the return with backing documents
- ASMT-11 filed within fewer than 10 days
Result? No penalty, no further inquiry.
How Legal Dalal Can Help
We don’t just help firms in filing GST. We keep them away from legal issues. Our GST Notice Handling Service entails:
- Free assessment of your GST notice
- Complete reconciliation and documentation assistance
- Preparation of responses in the correct format
- Legal assistance in hearings
- Continuous monitoring for compliance with GST
Call +91-80942 37237 or www.legaldalal.in to speak with our experts.
GST notices are not penalties—part of the tax system to ensure transparency and compliance. Do it right and don’t pay penalties, have a clean business history and be able to continue growing your business with confidence.
Don’t leave it too late. If you have already received a GST notice or simply want to ensure that you never get one, then Legal Dalal will walk you through every step.
