Last updated: March 2026 | Reading time: 12 minutes
Received a GST notice and your heart skipped a beat? Take a deep breath. You are not alone — over 1,00,000 GSTINs are currently under examination in India, and the government issued more than 50,000 show cause notices in a single year. Most GST notices are routine, and many can be resolved with a simple reply.
The problem is not the notice itself. The problem is that most notices are written in dense legal language, full of section numbers and form codes that make no sense to someone running a shop or a small business.
This guide will explain every type of GST notice you might receive — in plain English and simple Hindi — so you know exactly what it means, how serious it is, and what to do next.
हिंदी में: GST नोटिस मिला है? घबराइए नहीं। यह गाइड आपको हर तरह के GST नोटिस को सरल हिंदी और अंग्रेज़ी में समझाएगी — क्या करना है, कितना खतरा है, और डेडलाइन क्या है।
How to Check if You Have a GST Notice
Before we dive into notice types, here is how to check if any notices have been issued against your GSTIN:
- Go to www.gst.gov.in and log in with your credentials
- Navigate to Services → User Services → View Notices and Orders
- You can also click the "View Notices and Orders" button directly on your dashboard
All notices and orders issued to your GSTIN will appear here, along with their status and reply deadlines.
हिंदी में: GST पोर्टल पर लॉगिन करें → Services → User Services → View Notices and Orders पर क्लिक करें। यहाँ आपके सभी नोटिस दिखेंगे।
The 8 Most Common GST Notices
Here is every major GST notice type, what triggers it, how serious it is, and exactly what you need to do.
1. GSTR-3A — Notice for Non-Filing of Returns
What it is: GSTR-3A is an automated notice generated by the GST system when you have not filed your GST returns (GSTR-3B, GSTR-1, GSTR-4, or GSTR-8) by the due date.
Risk level: Medium
Reply deadline: 15 days from the date of the notice
Why you received it: You either missed filing your monthly or quarterly GST return, or the system flagged your GSTIN for non-filing. In many cases, GSTR-3A notices are sent in bulk by the system — even to taxpayers whose registrations were cancelled or who were not required to file for that period.
What to do:
- If the notice is valid: file your pending return immediately on the GST portal, along with any applicable late fee
- If your registration was cancelled before the relevant period: you may safely ignore the notice, as GSTN has acknowledged issuing some GSTR-3A notices incorrectly for cancelled registrations
- Late fee for delayed GSTR-3B filing: Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST), subject to a maximum cap per return. If you have nil liability, the late fee is Rs. 20 per day (Rs. 10 CGST + Rs. 10 SGST)
What happens if you ignore it: If you do not file the return even after receiving GSTR-3A, the tax officer can proceed to assess your tax liability on a "best judgment" basis under Section 62 — meaning they estimate what you owe, often on the higher side.
हिंदी में: यह नोटिस तब आता है जब आपने GST रिटर्न समय पर नहीं भरा। 15 दिन के अंदर अपना पेंडिंग रिटर्न फाइल करें और लेट फीस भरें। अगर आपका रजिस्ट्रेशन पहले से कैंसिल है, तो यह नोटिस गलती से आ सकता है — आप इसे इग्नोर कर सकते हैं।
2. ASMT-10 — Scrutiny Notice
What it is: ASMT-10 is a scrutiny notice issued when a GST officer finds discrepancies in your filed returns. This is not a demand for payment — it is an inquiry asking you to explain the differences.
Risk level: Medium
Reply deadline: 30 days from the date of the notice (you can request a 15-day extension)
Why you received it: Common triggers include a mismatch between GSTR-1 (outward supplies) and GSTR-3B (summary return), a mismatch between Input Tax Credit claimed in GSTR-3B and what is available in GSTR-2B, discrepancies between e-invoices or e-way bills and your return data, or excess ITC claims that appear ineligible under GST law.
What to do:
- Read the notice carefully to identify the exact discrepancy being questioned
- Gather supporting documents: invoices, purchase orders, bank statements, e-way bills, stock registers
- If the discrepancy is genuine (you made an error): pay the differential tax and interest via Form DRC-03, then file your reply in Form ASMT-11 with proof of payment
- If you disagree with the discrepancy: file a detailed reply in Form ASMT-11 explaining your position with supporting evidence
- Reply on the GST portal: Services → View Additional Notices/Orders → Click "View" for the notice → File reply
What happens if you ignore it: The officer can escalate to a formal demand notice (DRC-01) under Section 73 or 74, which carries higher penalties. Responding at the ASMT-10 stage is your best chance to resolve the issue without penalty.
हिंदी में: यह जाँच नोटिस है — सरकार को आपके रिटर्न में कोई गड़बड़ी दिखी है और वो स्पष्टीकरण माँग रहे हैं। 30 दिन में ASMT-11 फॉर्म में जवाब दें। अगर गलती आपकी है तो टैक्स और ब्याज भरें। अगर नहीं है तो सबूत के साथ जवाब दें। इस स्टेज पर जवाब देना सबसे फायदेमंद है — पेनल्टी से बच सकते हैं।
3. DRC-01A — Intimation Before Formal Notice
What it is: DRC-01A is a "soft" notice — an intimation sent by the tax officer before issuing a formal show cause notice. Think of it as a warning shot. The officer has identified a potential tax liability and is giving you a chance to pay voluntarily or explain before things get serious.
Risk level: Low to Medium
Reply deadline: No strict statutory deadline, but respond as quickly as possible — ideally within 7-15 days
Why you received it: The officer has found discrepancies (similar to ASMT-10) but believes there may be a tax shortfall. This is issued before the formal DRC-01 show cause notice.
What to do:
- Take this seriously — it is your best opportunity to resolve the issue with minimal or zero penalty
- If you agree with the liability: pay the tax and interest voluntarily through DRC-03. Paying at this stage often avoids penalty entirely
- If you disagree: submit a detailed response with supporting documents
What happens if you ignore it: The officer will escalate to a formal show cause notice in DRC-01, which starts the demand and recovery process with higher penalty exposure.
हिंदी में: यह एक "चेतावनी" नोटिस है — अभी कोई फॉर्मल डिमांड नहीं है। अगर आप इस स्टेज पर टैक्स भर दें तो पेनल्टी से पूरी तरह बच सकते हैं। इसे नज़रअंदाज़ न करें — यह आपका सबसे अच्छा मौका है।
4. DRC-01 — Show Cause Notice (Demand & Recovery)
What it is: DRC-01 is the formal show cause notice. This is where things get serious. The tax officer is formally asking you to explain why you should not be required to pay a specific amount of tax, interest, and penalty.
Risk level: High
Reply deadline: 30 days from the date of the notice
Why you received it: This notice is issued under Section 73 (non-fraud cases) or Section 74 (fraud cases) of the CGST Act when the officer has determined that tax has been short-paid, not paid, erroneously refunded, or Input Tax Credit has been wrongly availed or utilised. For FY 2024-25 onwards, Section 74A replaces both Section 73 and 74.
What to do:
- Read every line of the notice — it will specify the exact period, amount, section, and grounds for the demand
- File your reply in Form DRC-06 on the GST portal within 30 days
- If you agree with the demand: pay the tax + interest + reduced penalty (15% if paid before the order is issued) via DRC-03
- If you disagree: prepare a detailed written submission with all supporting evidence, citing relevant case law if applicable. Consider engaging a CA or GST practitioner at this stage
- Request a personal hearing if the matter is complex
Penalty structure under DRC-01:
- Pay before DRC-01 is issued (at DRC-01A stage): penalty can often be avoided
- Pay within 30 days of DRC-01: 25% penalty
- Pay within 30 days of final order (DRC-07): 50% penalty
- After 30 days of final order: 100% penalty
What happens if you ignore it: The officer will pass a final order in DRC-07 without your input (ex-parte order), and the full demand with 100% penalty becomes recoverable. It will appear in your Electronic Liability Ledger.
हिंदी में: यह सबसे गंभीर नोटिस है। सरकार कह रही है कि आपने कम टैक्स भरा है और बताइए क्यों न वसूली की जाए। 30 दिन में DRC-06 फॉर्म में जवाब दें। जितनी जल्दी भुगतान करेंगे, उतनी कम पेनल्टी लगेगी — 25% अगर नोटिस के बाद, 100% अगर ऑर्डर के बाद। CA से सलाह ज़रूर लें।
5. Section 73 Notice — Tax Demand Without Fraud
What it is: A show cause notice under Section 73 of the CGST Act is issued when the tax officer believes there is a short payment, non-payment, erroneous refund, or wrong ITC claim — but without any allegation of fraud, willful misstatement, or suppression of facts. This is the "genuine mistake" category.
Risk level: High
Time limit for the department to issue this notice: 3 years from the due date of the annual return for the relevant financial year (for cases up to FY 2023-24)
Reply deadline: 30 days from the date of the notice
Penalty: 10% of the tax due, subject to a minimum of Rs. 10,000
Important 2026 update: The government has offered a conditional waiver of interest and penalty for Section 73 demands relating to FY 2017-18, 2018-19, and 2019-20, provided the taxpayer pays the full tax amount by the notified date. This is under Section 128A of the CGST Act.
Note for FY 2024-25 onwards: For financial years starting from 2024-25, the new Section 74A replaces both Section 73 and Section 74. Section 74A provides a unified framework with a single time limit of 42 months from the due date of the annual return, regardless of whether fraud is alleged. However, penalty slabs still differ based on intent.
हिंदी में: Section 73 का नोटिस तब आता है जब सरकार को लगता है कि आपने गलती से कम टैक्स भरा है — धोखाधड़ी का आरोप नहीं है। पेनल्टी 10% है (कम से कम ₹10,000)। FY 2017-20 के लिए, पूरा टैक्स भरने पर ब्याज और पेनल्टी माफ हो सकती है।
6. Section 74 Notice — Tax Demand With Fraud Allegation
What it is: Section 74 is the most serious notice under GST. It is issued when the tax officer alleges that tax was not paid, short paid, or ITC was wrongly claimed due to fraud, willful misstatement, or suppression of facts.
Risk level: Very High
Time limit for the department: 5 years from the due date of the annual return
Reply deadline: 30 days from the date of the notice
Penalty: 100% of the tax due (compared to 10% under Section 73). If you pay early, reduced penalties apply — 15% before SCN, 25% within 30 days of SCN, 50% within 30 days of the order.
What to do: Engage a qualified CA or GST lawyer immediately. The difference between Section 73 and Section 74 is significant — Section 74 carries 100% penalty vs 10% under Section 73. If you believe the fraud allegation is unjustified, you must strongly contest it with evidence. The Supreme Court has held that fraud must be proven with material evidence — a mere mismatch alone cannot automatically trigger Section 74.
हिंदी में: यह सबसे गंभीर नोटिस है — सरकार कह रही है कि आपने जानबूझकर टैक्स चोरी की। पेनल्टी 100% है। तुरंत CA या GST वकील से बात करें। अगर आपने धोखाधड़ी नहीं की है तो मज़बूत सबूतों के साथ लड़ें — सुप्रीम कोर्ट ने कहा है कि सिर्फ मिसमैच से Section 74 नहीं लगा सकते।
7. DRC-07 — Final Demand Order
What it is: DRC-07 is the final order issued after a show cause notice (DRC-01) has been adjudicated. If the officer is not satisfied with your reply, or if you did not reply at all, this order specifies the final amount of tax, interest, and penalty you are required to pay.
Risk level: Very High
What to do:
- The amount in DRC-07 becomes a legally recoverable demand and will appear in your Electronic Liability Ledger
- If you disagree with the order: file an appeal in Form GST APL-01 to the First Appellate Authority within 3 months from the date of the order, along with a mandatory pre-deposit of 10% of the disputed tax amount
- Pay the undisputed portion immediately to stop interest from accumulating
हिंदी में: यह फाइनल ऑर्डर है — अब आपको भुगतान करना होगा। अगर आप असहमत हैं तो 3 महीने के अंदर अपील (GST APL-01) फाइल करें। 10% विवादित राशि जमा करनी होगी।
8. REG-17 / REG-18 — Show Cause Notice for Registration Cancellation
What it is: REG-17 is a show cause notice asking why your GST registration should not be cancelled. REG-18 is the form you use to reply to this notice.
Risk level: Medium to High (losing your GST registration can severely impact your business)
Reply deadline: 7 working days from the date of the notice
Why you received it: Common reasons include not filing returns for 6 consecutive months (for regular taxpayers) or 3 consecutive quarters (for composition dealers), obtaining registration through fraud or misrepresentation, or not commencing business within 6 months of voluntary registration.
What to do:
- File all pending returns immediately
- Reply in Form REG-18 within 7 working days explaining why cancellation should not proceed
- If your registration has already been cancelled: you can apply for revocation within 30 days in Form REG-21
हिंदी में: यह नोटिस कहता है कि आपका GST रजिस्ट्रेशन कैंसिल हो सकता है। 7 दिन के अंदर REG-18 में जवाब दें और सभी पेंडिंग रिटर्न फाइल करें। अगर कैंसिल हो चुका है तो 30 दिन में REG-21 में revocation के लिए अप्लाई करें।
Quick Reference: GST Notice Comparison Table
| Notice | What It Means | Risk | Deadline | Penalty If Ignored |
|---|---|---|---|---|
| GSTR-3A | You did not file your return | Medium | 15 days | Best judgment assessment, late fees |
| ASMT-10 | Discrepancy found in your returns | Medium | 30 days | Escalation to DRC-01 |
| DRC-01A | Warning before formal demand | Low-Medium | ASAP (7-15 days) | Escalation to DRC-01 |
| DRC-01 | Formal demand for tax + penalty | High | 30 days | Ex-parte order, 100% penalty |
| Section 73 | Demand without fraud allegation | High | 30 days | 10% penalty (min. Rs. 10,000) |
| Section 74 | Demand with fraud allegation | Very High | 30 days | 100% penalty |
| DRC-07 | Final order — pay or appeal | Very High | 3 months (for appeal) | Recovery proceedings |
| REG-17 | Registration may be cancelled | Medium-High | 7 working days | Loss of GST registration |
What to Do Immediately When You Receive Any GST Notice
No matter which notice you received, follow these five steps:
Step 1: Do not panic. Most notices are routine — even large businesses receive them regularly. A notice is not a penalty. It is a request for information or explanation.
Step 2: Read the notice carefully. Identify the notice type (form number), the section of the CGST Act referenced, the relevant financial year or tax period, the specific discrepancy or demand amount, and the reply deadline.
Step 3: Gather your documents. Pull together the relevant GST returns (GSTR-1, GSTR-3B), invoices, purchase orders, bank statements, e-way bills, and any other supporting evidence related to the period in question.
Step 4: Respond within the deadline. File your reply on the GST portal. Never ignore a GST notice — non-response is treated as acceptance of the demand in many cases.
Step 5: Seek professional help if needed. For routine notices (GSTR-3A, basic ASMT-10), you can often handle the reply yourself. For demand notices (DRC-01, Section 73/74), consider engaging a CA or GST practitioner.
हिंदी में: कोई भी नोटिस मिले — घबराएँ नहीं। नोटिस पढ़ें, डॉक्यूमेंट इकट्ठा करें, डेडलाइन से पहले जवाब दें। DRC-01 या Section 73/74 नोटिस के लिए CA की मदद लें। नोटिस को कभी इग्नोर न करें — चुप रहना मतलब "हाँ, मैं मानता हूँ" माना जाता है।
Frequently Asked Questions
What is a GST notice?
A GST notice is an official communication from the tax authorities regarding your GST compliance. It may be related to non-filing of returns, discrepancies in your filings, demand for unpaid tax, or a request for additional information. Notices can be viewed and responded to through the GST portal.
Can I receive a GST notice even if I have filed all my returns on time?
Yes. Even if your returns are filed on time, you can receive a scrutiny notice (ASMT-10) if the department finds discrepancies between your different returns (GSTR-1 vs GSTR-3B), between your ITC claims and GSTR-2B, or between your returns and other data sources like e-invoices and e-way bills.
What is the difference between Section 73 and Section 74?
Section 73 applies to genuine mistakes — cases where there is no fraud or intentional wrongdoing. The penalty is 10% of the tax due. Section 74 applies when the department alleges fraud, willful misstatement, or suppression of facts. The penalty is 100% of the tax due. For FY 2024-25 onwards, both sections are replaced by the new Section 74A.
What happens if I do not reply to a GST notice?
If you do not reply within the deadline, the tax officer can pass an ex-parte order (a decision made without your input), which usually results in the full demand being confirmed with maximum penalty. Once the order is passed, you can only challenge it through an appeal, which requires a 10% pre-deposit.
Can I reply to a GST notice after the deadline has passed?
On the GST portal, the system may not allow you to file a reply after the deadline expires. In such cases, you must submit your reply physically at the GST office or send it via email to the concerned officer. Acting late is always better than not acting at all.
What is Section 128A and the penalty waiver?
Section 128A of the CGST Act provides a conditional waiver of interest and penalty for demand notices issued under Section 73 for FY 2017-18, 2018-19, and 2019-20. If you pay the full tax amount by the notified deadline, the interest and penalty are waived. This is a significant relief for businesses that received notices for the early GST years.
How long should I keep my GST records?
You must maintain GST-related records for 72 months (6 years) from the due date of the annual return for the relevant financial year. Keep all invoices, returns, bank statements, and correspondence safely stored.
Still Confused by Your GST Notice?
Understanding which notice type you received and what it means is the critical first step. But every notice is different — the specific amounts, sections, and deadlines in your notice need careful attention.
GST Clarity AI can help. Upload your GST notice (PDF or image) and get a clear, personalised explanation in plain Hindi or English within 2 minutes. You will know your notice type, risk level, exact deadline, and step-by-step next actions — all for just Rs. 99.
No jargon. No confusion. Just clarity.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. GST laws and procedures are subject to change. For specific advice regarding your GST notice, please consult a qualified Chartered Accountant or GST practitioner. Information in this article is accurate as of March 2026.
About GST Clarity AI
GST Clarity AI is an AI-powered tool that helps Indian small business owners understand their GST notices instantly. Founded by Sulata Patra and Sunil Pradhan, the platform was built with one mission: no business owner should have to pay thousands of rupees just to understand a piece of paper from the government. Learn more at gstclarityai.in.