Dealing with GST compliance involves not only regular filing and tax payments but also responding appropriately to notices and proceedings initiated by tax authorities. Here's a breakdown of each stage and how to handle them effectively:
A GST notice is a formal communication sent by the GST Department for seeking clarification, rectifying discrepancies, or taking action for non-compliance.
| Form | Purpose |
|---|---|
| REG-03 | Clarification related to GST registration |
| GSTR-3A | Default in return filing |
| CMP-05 | Show-cause for composition scheme ineligibility |
| ASMT-10 | Discrepancy in return scrutiny |
| DRC-01 | Show cause notice for tax shortfall or fraud |
| PCT-03 | Misconduct by GST practitioner |
Log in to the GST Portal
Go to Services → User Services → View Notices and Orders
File a timely and factual response with supporting documents
Use professional help if the matter is technical or legal in nature
Scrutiny is when the GST officer examines returns (GSTR-1, GSTR-3B, etc.) for discrepancies such as:
Mismatch between GSTR-1 & GSTR-3B
Difference between ITC claimed vs. GSTR-2B
Underreporting of turnover
Carefully go through the notice points
Use reconciliation statements and accounting records
Respond using Form ASMT-11 within the stipulated time (typically 30 days)
If the officer is satisfied, they will issue ASMT-12 (acceptance of reply)
| Type | Details |
|---|---|
| Self-assessment | Regular return filing by taxpayer |
| Provisional | Allowed when proper documents are not available |
| Scrutiny assessment | Done during return examination |
| Best judgment | If no return is filed despite notices |
| Summary assessment | Done quickly to protect interest of revenue (Form ASMT-16) |
Always maintain proper books of accounts and records
File returns even if NIL to avoid best judgment assessment
Cooperate and submit required documents promptly
Adjudication is the legal process of settling disputes like tax liability, classification issues, or penalties under GST.
Notice issued (DRC-01) for tax evasion, fraud, etc.
Taxpayer must reply using Form DRC-06
Hearing may be conducted
Order passed using Form DRC-07 with details of tax, penalty, and interest
Treat show cause notices seriously
Draft a strong, documented reply
Appear for hearings (physical/online)
You can appeal the order within 3 months (Form GST APL-01)
Keep all GST records and reconciliations updated
Monitor the GST portal regularly for notices
Respond within deadlines — delays lead to penalties
Consult a CA or GST practitioner for technical notices
Attend personal hearings if scheduled
Maintain a trail of communications and acknowledgments
| Form | Purpose |
|---|---|
| ASMT-10 | Notice for return scrutiny |
| ASMT-11 | Reply to scrutiny notice |
| ASMT-12 | Acceptance of explanation |
| DRC-01 | SCN for tax demand |
| DRC-06 | Reply to SCN |
| DRC-07 | Final order |
| GSTR-3A | Default notice for return non-filing |
| APL-01 | Filing an appeal |
???? Read notices carefully and note the due date
???? Gather evidence and reconcile data
✍️ Respond using the correct form
⚖️ Prepare for hearings if required
???? Track timelines for appeals or replies
???? Get professional help for legal or high-value matters
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A GST notice is an official communication sent by the GST department to a taxpayer for various reasons, such as non-compliance, discrepancies in returns, or demand for payment.
| Form | Purpose |
|---|---|
| REG-03 | Seeks clarification for GST registration |
| GSTR-3A | Issued for failure to file GST returns |
| CMP-05 | Show-cause for ineligibility under composition scheme |
| ASMT-10 | For scrutiny of returns |
| DRC-01 | Show cause notice for tax demand or evasion |
| PCT-03 | Notice to a GST practitioner for misconduct |
Log in to the
Navigate to: Services > User Services > View Notices and Orders
Read the notice carefully and gather necessary documents
Submit a clear, factual reply with supporting evidence
Respond within the time specified (usually 15–30 days)
Scrutiny of returns refers to the detailed examination of GST returns (like GSTR-1, GSTR-3B) to identify mismatches, underreporting, or inconsistencies.
Mismatch between GSTR-1 and GSTR-3B
ITC claimed in GSTR-3B is higher than GSTR-2B
Turnover declared under GST vs. income tax return
Differences in e-way bills and GSTR data
Identify the discrepancies highlighted
Reconcile your records and prepare a justification
Respond using Form ASMT-11 within the due date
If satisfied, the officer will close the case via Form ASMT-12
| Type | Description |
|---|---|
| Self-assessment | Done by the taxpayer through regular return filing |
| Provisional assessment | Done when the taxpayer is unable to determine value/tax rate |
| Scrutiny assessment | When discrepancies are found during return examination |
| Best judgment | Done when no return is filed even after notice (e.g., GSTR-3A) |
| Summary assessment | Immediate assessment to protect revenue interest (Form ASMT-16) |
Maintain books and GST filings accurately
Respond to notices and submit documents promptly
Cooperate during proceedings to avoid escalation
Adjudication is the legal process by which a tax authority settles a dispute, demand, or non-compliance under GST law.
GST Officer issues DRC-01 (SCN) detailing demand/violation
Taxpayer must reply using DRC-06 with all evidence
A hearing may be scheduled
Final order is passed in DRC-07 (tax, interest, penalty confirmed)
If you agree with the order: Pay the amount and close the case
If you disagree: File an appeal within 3 months using Form APL-01
Appeal to Appellate Authority using Form GST APL-01
File within 3 months of receiving adjudication order
Pre-deposit of 10% of disputed amount is required
| Form | Purpose |
|---|---|
| ASMT-10 | Notice for scrutiny of return |
| ASMT-11 | Reply to scrutiny notice |
| ASMT-12 | Acceptance of reply |
| DRC-01 | Show cause notice for tax demand |
| DRC-06 | Reply to SCN |
| DRC-07 | Final adjudication order |
| APL-01 | Appeal to the Appellate Authority |
| GSTR-3A | Notice for non-filing of returns |
?? Stay compliant: File returns on time, maintain proper records
???? Regular reconciliations: Match GSTR-1, GSTR-3B, and GSTR-2B
???? Check GST portal frequently for notices
????? Respond in writing, attaching all supporting documents
???? Seek expert help for complex cases
?? Never miss a deadline to avoid penalties
Proper handling of GST notices, scrutiny, assessment, and adjudication is essential for smooth business operations. Timely responses, accurate records, and understanding your rights can help you resolve issues efficiently and avoid litigation.
| Rakesh Garg Sandeep Garg How to handle GST Notices, Scrutiny, Assessment and Adjudication |
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