A GST notice reply done correctly and on time is what keeps a system-generated mismatch from turning into a tax demand, penalty or cancellation. Most notices are queries about returns — ignoring them is what makes them expensive.
Key takeaways
- Download every notice from the GST portal and diary the exact reply date.
- DRC-01B and DRC-01C usually give only 7 days.
- If the demand is right, pay through DRC-03 with interest; if not, explain in writing on the portal.
- Appeals must be filed within 3 months of the order, with a 10% pre-deposit of disputed tax.
Common types of GST notices
| Notice | Why it is issued | Reply form and time limit |
|---|---|---|
| GSTR-3A | Return not filed | File the pending return within 15 days |
| REG-03 | Query on a new registration application | REG-04 within 7 working days |
| REG-17 | Show cause notice for cancelling registration | REG-18 within 7 working days |
| ASMT-10 | Discrepancies found in scrutiny of returns | ASMT-11 within 30 days (or as specified) |
| DRC-01B | Liability in GSTR-1 higher than in GSTR-3B | Pay or explain in Part B within 7 days |
| DRC-01C | ITC claimed in GSTR-3B higher than in GSTR-2B | Pay or explain in Part B within 7 days |
| DRC-01 | Show cause notice demanding tax | Reply within the period given in the notice (usually 30 days) |
| ADT-01 | Department audit | Produce records on the date given |
DRC-01B often follows the mismatches explained in GSTR-1 vs GSTR-3B.
Step-by-step: how to file a GST notice reply
- Download the notice from Services → User Services → View Notices and Orders on the GST portal.
- Note the deadline. Mark the exact reply date; extensions are not automatic.
- Identify the issue — return mismatch, ITC difference, turnover gap or registration.
- Reconcile GSTR-1, GSTR-3B, GSTR-2B, e-way bills and your books for the period.
- Decide: pay or contest. If the demand is correct, pay through DRC-03 with interest. If not, prepare a written explanation.
- Draft the reply point by point, quoting the relevant sections, and attach invoices, ledgers, reconciliations and earlier correspondence.
- File the reply on the portal in the prescribed form and save the acknowledgement.
- Request a personal hearing for show cause notices if you need to present your case.
Penalty relief if you act early
For demands not involving fraud, paying the tax and interest within the time allowed after the show cause notice can significantly reduce or remove the penalty. In fraud cases, penalty can go up to 100% of the tax. Acting early is always cheaper.
What if the order goes against you?
You can file an appeal before the Appellate Authority within 3 months of the order, with a pre-deposit of 10% of the disputed tax. Further appeals lie with the GST Appellate Tribunal. If registration was cancelled, see how to revoke a cancelled GST registration.
Tips from our CAs
- Never ignore a notice, even if you think it is wrong.
- Keep your registered email and mobile number updated.
- Reconcile GSTR-2B and books every month to prevent notices.
- Reply in writing on the portal; oral explanations are not on record.
How to write a reply that closes the matter
Open with the notice number, date and period. Answer each allegation in the same order as the notice. For a DRC-01C, attach a line-by-line map of 3B ITC to 2B invoices and explain every rupee that is not there (credit note, rejected invoice, IMS pending). For ASMT-10, attach the GSTR-1 versus books recon. End with the prayer: drop the proceedings, or confirm the DRC-03 ARN if you have paid. Vague letters get a demand order.
What not to do
- Do not wait for a reminder SMS. The clock started on the date of the notice.
- Do not pay under protest without saying so in the reply — you may lose the chance to contest.
- Do not file a one-line “we will look into it”. That is not a reply in law.
- Do not miss REG-18 if the notice is REG-17; cancellation follows quickly, and then you need GST revocation.
What to do today
- Download the PDF from View Notices and Orders and note the due date in writing.
- Forward it to your CA the same day, with the period’s GSTR-1, 3B and 2B.
- If the amount is clearly due, pay DRC-03 and still file the written reply attaching the challan.
Worked scenario
A manufacturer gets DRC-01C because March GSTR-3B claimed a ₹4 lakh invoice the supplier filed only in April’s GSTR-1. The GST notice reply is: here is the invoice, here is April 2B where it appeared, we will not claim it twice. Paying first and explaining later is optional if the credit was simply early; paying is mandatory if the invoice is fake or blocked. A REG-17 for six months of non-filing is a different letter — file the returns, then REG-18, or you will be on the GST revocation path.
Related reading: GSTR-1 vs GSTR-3B.
Frequently asked questions
Can I reply to a GST notice myself?
Yes, but a professionally drafted reply with reconciliations has a much better chance of closing the matter.
What happens if I don’t reply?
The officer can pass an order based on available information, raise a demand with interest and penalty, or cancel your registration.
Where do I upload the GST notice reply?
On gst.gov.in under Services → User Services → View Notices and Orders, using the form named in the notice (REG-04, REG-18, ASMT-11, DRC-01B Part B, and so on). Save the acknowledgement PDF.
Received a GST notice? Share it with Filing360 — we review it and draft a complete GST notice reply.
