GST Notice - Complete Overview
📌 TL;DR - GST Notice Services at a Glance
A GST notice demands explanation for discrepancies in returns, payments, or ITC claims. Reply within 7 to 30 days via the GST portal. Section 73 covers non-fraud (penalty up to 10%), Section 74 addresses fraud (up to 100%), and Section 74A (from FY 2024-25) consolidates both with a 42-month window. Professional CA assistance ensures compliant, timely responses.
| Parameter | Details |
|---|---|
| What is a GST Notice | Official communication from GST authorities for non-compliance or discrepancies |
| Governing Law | Sections 46, 61, 62, 63, 65, 67, 73, 74, 74A of CGST Act, 2017 |
| Common Triggers | GSTR-1 vs GSTR-3B mismatch, ITC discrepancies, non-filing, excess refund claims |
| Reply Timeline | 7 to 30 days depending on notice type |
| Penalty (Non-Fraud) | 10% of tax due or Rs 10,000 whichever is higher (Sec 73/74A) |
| Penalty (Fraud) | Up to 100% of tax due (Sec 74/74A) |
| Patron Fee | Starting Rs 2,999 for GST notice reply assistance |
What Is a GST Notice?
A GST notice is a formal legal communication sent by GST authorities to a registered taxpayer under the CGST Act, 2017, requiring explanation, information, or corrective action regarding discrepancies in GST returns, payments, registrations, or input tax credit claims.
Notices can range from routine scrutiny (ASMT-10 under Section 61) to serious show cause notices (Section 73, 74, or 74A) demanding tax payment with interest and penalty. The type of notice determines the response deadline, penalty exposure, and legal strategy required.
With the introduction of Section 74A (effective FY 2024-25), the demand framework has been consolidated into a single provision with a 42-month notice period, replacing the dual Sections 73 and 74 structure for periods from FY 2024-25 onwards.
Key Terms for GST Notice:
Show Cause Notice (SCN) - Notice under Section 73, 74, or 74A requiring the taxpayer to explain why they should not pay the demanded tax, interest, and penalty.
DRC-01 / DRC-07 - DRC-01 is the summary of show cause notice. DRC-07 is the summary of demand order issued after adjudication.
ASMT-10 - Scrutiny notice under Section 61 when discrepancies are found in filed returns.
Section 74A - New unified provision (FY 2024-25 onwards) consolidating Sections 73 and 74 with a 42-month notice period and 60-day reduced penalty window.
Who Receives a GST Notice?
- GSTR-1 vs GSTR-3B Mismatch: When sales data in GSTR-1 does not match the summary return GSTR-3B, scrutiny notices follow
- ITC Discrepancies: Input Tax Credit claimed in GSTR-3B not matching GSTR-2A or GSTR-2B triggers automated notices
- Non-Filing or Delayed Filing: Failure to file for more than six months can lead to cancellation notice under Section 29
- E-Way Bill vs GSTR-1 Mismatch: Inconsistencies between e-way bill data and GSTR-1 declarations invite scrutiny
- Excess Refund Claims: Erroneously sanctioned refunds may be recovered through show cause notices
- Unregistered Businesses: Businesses exceeding Rs 40 lakh threshold (Rs 20 lakh for services) that have not registered
Our GST Notice Services
| Service | What We Do |
|---|---|
| Notice Analysis and Assessment | Review of notice type, section reference, demand amount, and applicable deadlines. Free initial assessment to determine your exposure. |
| Reply Drafting and Filing | Legally compliant replies with supporting documentation, filed via the GST portal within the stipulated deadline |
| Representation Before Authorities | Personal hearing representation by authorised CA or Advocate under Section 116 of CGST Act |
| GSTR Reconciliation and Correction | GSTR-1 vs GSTR-3B reconciliation, GSTR-2B vs ITC reconciliation, and corrective filings to resolve discrepancies |
| Appeal Filing Against Orders | First appeal to Appellate Authority within 3 months under Section 107 of CGST Act |
| Preventive Compliance Review | Monthly GST health check to identify and fix mismatches before they trigger notices |
How to Reply to a GST Notice Online
Step-by-step process for replying to a GST notice via the GST portal under Section 169 of the CGST Act, 2017.
Log in to GST Portal
Log in to the GST portal at www.gst.gov.in using your GSTIN and password.
Navigate to Notices
Go to Dashboard > Services > User Services > View Notices and Orders.
Identify the Notice
Review the section reference, demand amount, and reply deadline. Understand whether it is a scrutiny notice (ASMT-10), show cause (Section 73/74/74A), cancellation (REG-17), or audit (ADT-01).
Gather Supporting Documents
Collect GST returns (GSTR-1, GSTR-3B, GSTR-9), invoices, payment challans, bank statements, ITC registers, and reconciliation statements for the relevant period.
Draft the Reply
Address each point raised in the notice with specific references to Act sections and supporting evidence. Include reconciliation data, invoice-level details, and case law references where applicable.
Upload and Submit
Click the Reply button on the notice, enter your response, upload supporting documents (up to 4 files of 5 MB each). Select Personal Hearing Required (Yes/No). Verify and submit using DSC or EVC.
Save Acknowledgement
Save the acknowledgement with Reference Number (RFN) for your records. Monitor the case via the REPLIES tab in Case Details on the portal.
Documents Required for GST Notice Reply
- Copy of the GST notice (downloaded from the portal)
- GST returns: GSTR-1, GSTR-3B, GSTR-9, GSTR-9C as applicable
- Tax payment challans and receipts
- Purchase and sales invoices for the relevant period
- Input Tax Credit register and reconciliation with GSTR-2B
- E-way bills (if applicable to the notice)
- Bank statements showing GST payments
- Audited financial statements
- Previous correspondence with GST authorities (if any)
- Power of Attorney or Letter of Authorisation (if filing through representative)
Common Challenges and Solutions
| Challenge | Impact | How Patron Accounting Solves It |
|---|---|---|
| GSTR-1 vs GSTR-3B Mismatch | Automated scrutiny notices triggered by sales data discrepancies between GSTR-1 and GSTR-3B | Run monthly reconciliation using GST tools. File corrective amendments in GSTR-1 before the annual return deadline. |
| ITC Exceeds GSTR-2B Data | Input Tax Credit claimed in GSTR-3B exceeds auto-populated GSTR-2B, triggering automated notices | Reconcile ITC monthly. Reverse excess ITC in the next return with interest under Section 50 to avoid penalty escalation. |
| Tight Reply Deadlines (7-30 Days) | Complex data requirements with short deadlines make self-filing risky | Engage a CA immediately. Request extension of up to 15 days via the GST portal adjournment feature. |
| Understanding Legal Section and Penalty | Difficulty distinguishing between Section 73 (non-fraud) and Section 74 (fraud) implications | Professional assessment determines appropriate response strategy and penalty optimisation approach |
GST Notice Reply Fees
| Fee Component | Amount |
|---|---|
| Scrutiny Notice Reply (ASMT-10) | Starting from INR 2,999 |
| Show Cause Notice Reply (Section 73) | Starting from INR 4,999 |
| Show Cause Notice Reply (Section 74/74A - Fraud) | Starting from INR 9,999 |
| Registration Cancellation Reply (REG-17) | Starting from INR 2,999 |
| Personal Hearing Representation | Rs 7,999 per hearing |
| First Appeal (Section 107) | Starting from INR 14,999 |
| Preventive GST Compliance Review | Rs 1,999 per month |
All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.
Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.
Get a free GST Notice consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.
GST Notice Reply Timeline
| Stage | Estimated Timeline |
|---|---|
| REG-03 (Registration Clarification) | 7 working days | Our turnaround: 2-3 days |
| REG-17 (Cancellation SCN) | 7 working days | Our turnaround: 3-4 days |
| CMP-05 (Composition Scheme SCN) | 15 days | Our turnaround: 5-7 days |
| ASMT-10 (Scrutiny Notice) | 30 days | Our turnaround: 7-10 days |
| Section 73/74 SCN | 30 days (60 days under 74A) | Our turnaround: 10-15 days |
| ADT-01 (Audit Notice) | 15 days | Ongoing support |
Critical: Under Section 73, voluntary payment before SCN means zero penalty. Under Section 74A, payment within 60 days reduces penalty significantly. Every day of delay narrows your reduced-penalty window. Engage a CA immediately upon receiving any GST notice.
Benefits of Professional GST Notice Assistance
Accurate Legal Interpretation
Precise identification of notice section, demand, and penalty provisions under CGST Act, 2017 - distinguishing Section 73 from 74 from 74A
Comprehensive Reconciliation
GSTR-1, GSTR-3B, GSTR-2B, and annual return reconciliation to identify the exact discrepancy causing the notice
Well-Drafted Replies
Proper Act section citations, supporting evidence, and case law references - reducing escalation risk from scrutiny to demand
Penalty Optimisation
Under Sec 73, voluntary payment = zero penalty. Under 74A, payment within 60 days reduces penalty significantly. Timing is critical.
Hearing Representation
Personal hearing before GST adjudicating authorities by experienced CA or Advocate under Section 116
Why Businesses Trust Patron Accounting
500+ GST notices handled across scrutiny, show cause, demand, and cancellation categories since 2020. 95% resolution rate without escalation to demand orders or penalties. 4.8/5 Google rating from 200+ verified reviews. Offices in Pune, Mumbai, Delhi, and Gurugram serving clients across all 28 states.
DIY vs Professional GST Notice Reply
| Parameter | DIY Reply | CA-Assisted Reply |
|---|---|---|
| Legal Accuracy | Risk of incorrect section references | Precise Act section and rule citations |
| Reconciliation | Manual, error-prone | Software-assisted with GST tools |
| Penalty Savings | May miss voluntary payment deadline | Optimise penalty by timing payment |
| Hearing Representation | Self-appearance only | CA or Advocate under Section 116 |
| Escalation Risk | High - incomplete reply leads to demand | Low - comprehensive first-response strategy |
| Cost | Rs 0 (but penalty risk is high) | Rs 2,999 onwards |
Related GST and Compliance Services
- GST Registration - For businesses needing to register under GST
- GST Return Filing - Monthly GSTR-1 and GSTR-3B to prevent non-filing notices
- GST Annual Return - GSTR-9 and GSTR-9C filing
- GST Cancellation and Revocation - For registration cancellation notices
- Income Tax Notice - Similar expertise for IT notices under Section 142, 143, 148
Legal Framework for GST Notices
| Section | Purpose | Time Limit | Penalty |
|---|---|---|---|
| Section 46 | Notice for non-filing of returns | No specific limit | Late fee: Rs 50/day CGST + Rs 50/day SGST |
| Section 61 | Scrutiny of returns | No specific limit | Demand under Sec 73/74 if unresolved |
| Section 73 | Demand (non-fraud) - up to FY 2023-24 | 3-year limit | 10% of tax due or Rs 10,000; nil if paid within 30 days |
| Section 74 | Demand (fraud) - up to FY 2023-24 | 5-year limit | 15% (before SCN), 25% (30 days), 100% (default) |
| Section 74A | Unified demand - FY 2024-25 onwards | 42 months | Non-fraud: 10%; Fraud: 15%/25%/100% |
Key Change (Section 74A): From FY 2024-25, Section 74A replaces both Sections 73 and 74 with a single 42-month notice period, 60-day reduced penalty window (up from 30 days), and mandatory 12-month order deadline (extendable by 6 months). No notice required for demands below Rs 1,000.
Portal: GST Portal | CBIC Tax Information
Frequently Asked Questions - GST Notice
Expert answers about GST notices, reply process, penalties, and Sections 73, 74, and 74A of the CGST Act.
Quick Answers
What is a GST notice? An official communication from tax authorities under the CGST Act, 2017, requiring explanation for discrepancies in returns, payments, or ITC claims.
How many days to reply? 7 working days for registration notices (REG-03/REG-17); 30 days for scrutiny and SCN (ASMT-10, Section 73/74); 60 days reduced penalty window under Section 74A.
Penalty for ignoring? Demand orders, penalties up to 100% for fraud, bank account attachment, registration cancellation, and prosecution under Section 132.
Reply to Your GST Notice Before the Deadline
Under Section 73, voluntary payment before SCN means zero penalty. Under Section 74A, payment within 60 days reduces penalty significantly. Every day of delay narrows your window and increases financial exposure. Show Cause Notices under Section 74 for FY 2019-20 had a last issuance date of 30 September 2025 - if you received such notices, your deadline may be imminent.
Act now. Call +91 945 945 6700 or WhatsApp us for a free initial assessment.
Get Expert Help With Your GST Notice Today
A GST notice is a legal demand requiring a well-reasoned, evidence-backed response within strict timelines. Whether it is a scrutiny notice under Section 61, a show cause under Sections 73, 74, or 74A, or a demand order in DRC-07, the quality of your response directly impacts your financial liability.
Patron Accounting provides end-to-end GST notice assistance - analysis, reply drafting, portal filing, hearing representation, and appeal. With 500+ notices handled at a 95% resolution rate, offices in Pune, Mumbai, Delhi, and Gurugram, we ensure your GST compliance is protected.
Book a Free Consultation - No Obligation.
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Content Created: March 2026 | Last Updated: | Next Review: June 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP
This page is reviewed quarterly - aligned to GST Council meetings, CBIC notifications, penalty rate changes, and portal updates. Next review: June 2026.
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