GST Notice: Your Complete Guide For 2025

Received a GST Notice? Learn how to respond effectively, understand different notice types, and resolve issues with expert GST Notice consultants at Patron Accounting LLP.

1. GST Notice: Your Complete Guide to Understanding,
Responding, and Resolving Tax Notices in India

Meta Description: Received a GST Notice? Learn how to respond effectively, understand different
notice types, and resolve issues with expert GST Notice consultants at Patron Accounting LLP.
Introduction
Receiving a GST Notice can be unsettling for any business owner, whether you're running a startup,
managing an SME, or overseeing corporate operations. In India's evolving tax landscape, the Goods
and Services Tax Network (GSTN) regularly issues notices to ensure compliance and address
discrepancies. Understanding what these notices mean and how to respond appropriately is crucial to
avoid penalties, interest charges, and potential legal complications. This comprehensive guide will help
you navigate GST notices confidently and take the right steps toward resolution.
What is a GST Notice?
Understanding GST Communication
A GST Notice is an official communication from tax authorities—either the Central Board of Indirect
Taxes and Customs (CBIC) or state GST departments—alerting taxpayers about discrepancies, non-
compliance, or required actions regarding their GST returns and payments. These notices are typically
issued through the GST portal and serve as formal documentation of tax-related issues.
Common Triggers for GST Notices
GST authorities issue notices for various reasons, including:
 Mismatches between GSTR-1 (outward supplies) and GSTR-3B (summary return)
 Discrepancies in Input Tax Credit (ITC) claims
 Non-filing or delayed filing of GST returns

2.  Incorrect tax payment or short payment of taxes
 Differences between e-way bills and actual supplies reported
 Suspicious transaction patterns or potential tax evasion indicators
Legal Framework
GST notices are issued under specific sections of the CGST Act, 2017, primarily Sections 61 to 70, which
govern inspection, search, seizure, and demand proceedings. Understanding the legal basis of your
notice is the first step toward an effective response.
Types of GST Notices You Might Receive
Show Cause Notices (SCN)
A Show Cause Notice requires you to explain why a proposed action—such as demand for additional
tax, interest, or penalty—should not be taken against you. These are serious communications that
demand immediate attention and typically allow 30 days for response.
Demand Notices
Issued when tax authorities determine that you owe additional tax, interest, or penalties. These
notices specify the exact amount due and the calculation basis, requiring prompt payment or appeal.
Scrutiny Notices (Form GST ASMT-10)
The GST department issues scrutiny notices when they identify discrepancies or inconsistencies in your
returns that require clarification. You must respond within the specified timeframe, usually 30 days,
with supporting documents.
Notice for Non-Filing of Returns
If you fail to file GST returns by the due date, you'll receive automated reminders followed by formal
notices demanding compliance and payment of late fees.
Assessment Notices
These notices inform you about assessment proceedings initiated by tax officers, either as best
judgment assessment or provisional assessment, requiring your participation and document
submission.
Audit Notices
Approximately 5% of registered taxpayers are selected for GST audits annually. Audit notices require
comprehensive documentation of your financial transactions and tax compliance for the specified
period.
How to Check GST Notice Online
Step-by-Step Process
1. Login to GST Portal: Visit www.gst.gov.in and log in using your credentials
2. Navigate to Dashboard: Access your taxpayer dashboard
3. Check 'View Notices and Orders': Click on the 'Services' tab and select 'User Services' > 'View
Notices and Orders'

3. 4. Review Notices: All notices issued against your GSTIN will appear here with dates and
reference numbers
5. Download Documents: Download the notice PDF for detailed review
Setting Up Alerts
Enable email and SMS notifications on the GST portal to receive instant alerts when new notices are
issued, ensuring you never miss critical deadlines.
Regular Monitoring
Make it a practice to check your GST portal at least weekly to stay updated on any communications
from tax authorities.
Common Reasons for Receiving GST Notices
Mismatch in Returns
The most frequent cause of GST notices is discrepancies between different return forms—particularly
when suppliers' GSTR-1 data doesn't match with your GSTR-2A/2B, leading to ITC mismatches.
Example: If your supplier reports sales of ₹10 lakhs in their GSTR-1, but you claim ITC on ₹12 lakhs in
your GSTR-3B, the system flags this 20% discrepancy, triggering an automated notice.
Non-Reconciliation of ITC
Claiming Input Tax Credit without proper documentation or claiming more ITC than what's available in
your GSTR-2A/2B automatically generates scrutiny notices.
Late or Non-Filing
According to GST regulations, businesses must file returns by the 20th or 22nd of the following month.
Missing these deadlines results in late fees (₹50 per day per Act, capped at ₹5,000) and formal notices.
Incorrect GST Rate Application
Applying wrong GST rates to goods or services—whether charging 12% instead of 18% or vice versa—
leads to tax demand notices for the differential amount plus interest.
E-Way Bill Discrepancies
Mismatches between e-way bills generated and supplies reported in GSTR-1 trigger notices, as
authorities suspect potential tax evasion or incorrect reporting.
Suspicious Transaction Patterns
Sudden spikes in turnover, unusual ITC claims relative to turnover, or transactions with high-risk
suppliers may prompt investigation notices.
How to Respond to a GST Notice Effectively
Immediate Actions
Don't Panic: GST notices are routine compliance checks in many cases. Assess the notice calmly and
methodically.

4. Read Thoroughly: Understand the exact issue raised, the legal provisions cited, and the timeline for
response.
Gather Documentation: Collect all relevant invoices, payment records, bank statements, contracts,
and previous GST returns.
Prepare Your Response
Verify Claims: Cross-check the department's allegations against your actual records to identify genuine
errors versus system glitches.
Draft Detailed Reply: Prepare a point-by-point response addressing each issue raised, supported by
documentary evidence.
Maintain Professional Tone: Keep your communication formal, respectful, and factual, avoiding
emotional or confrontational language.
Submission Process
 Submit your response through the GST portal within the stipulated timeline
 Retain acknowledgment receipts and copies of all submissions
 Follow up if you don't receive confirmation within a reasonable period
Seek Professional Assistance
Engaging GST Notice consultants like Patron Accounting LLP ensures technically sound responses,
proper documentation, and strategic handling of complex issues.
Apply for GST Notice Response: Documentation Required
Essential Documents
When preparing to respond to a GST notice, compile these critical documents:
1. GST Registration Certificate: Proof of your valid GSTIN
2. Filed GST Returns: GSTR-1, GSTR-3B, and annual returns for the relevant period
3. Purchase and Sales Invoices: Original tax invoices supporting your transactions
4. Payment Records: Challans proving GST payment through the portal
5. Bank Statements: Demonstrating actual financial transactions
6. Ledger Accounts: Detailed books of accounts showing tax calculations
7. Reconciliation Statements: Reconciliation between books, returns, and portal data
8. Previous Correspondence: Any earlier communications with GST authorities
9. Professional Certifications: CA-certified statements if applicable
10. Supporting Evidence: Contracts, purchase orders, delivery challans, transport documents
Organizing Documentation

5. Create a systematic folder structure, both physical and digital, categorizing documents by type and
chronological order. This organization facilitates quick retrieval and professional presentation.
Digital Record-Keeping
Maintain scanned copies of all documents in searchable PDF format, backed up on cloud storage for
easy access during consultations with tax professionals.
Consequences of Ignoring GST Notices
Financial Penalties
Failing to respond to GST notices leads to:
 Interest Charges: 18% per annum on unpaid tax from the due date
 Late Fees: Up to ₹10,000 per return (₹5,000 under CGST + ₹5,000 under SGST)
 Penalties: Up to 100% of the tax amount in cases of fraud or willful misstatement
 Additional Demands: Best judgment assessment often results in inflated tax demands
Legal Implications
Non-compliance can escalate to:
 GST registration cancellation, suspending your business operations
 Bank account attachment or property seizure for tax recovery
 Criminal prosecution for tax evasion exceeding ₹5 crores
 Blacklisting affecting business reputation and future contracts
Business Disruption
Unresolved GST issues create operational challenges including blocked ITC, difficulties in securing new
clients, problems with loan approvals, and damaged business credibility.
Compounding Problems
Ignored notices trigger subsequent enforcement actions with progressively severe consequences,
making resolution increasingly complex and expensive.
Role of GST Notice Consultants in Resolution
Expert Analysis
Professional GST Notice consultants provide:
 Technical Expertise: Deep understanding of GST laws, rules, and judicial precedents
 Issue Diagnosis: Accurate identification of problems and potential solutions
 Risk Assessment: Evaluation of worst-case scenarios and litigation probabilities
 Strategic Planning: Optimal response strategies minimizing financial and legal exposure
Comprehensive Services

6. Patron Accounting LLP offers end-to-end support including:
1. Notice Review: Detailed analysis of the notice and legal implications
2. Documentation Support: Gathering and organizing required documents
3. Response Drafting: Preparing legally sound, evidence-backed replies
4. Portal Navigation: Filing responses and tracking status online
5. Representation: Appearing before tax authorities for personal hearings
6. Appeal Filing: Challenging adverse orders at appropriate forums
7. Compliance Audit: Identifying and correcting systemic compliance gaps
Time and Cost Efficiency
Professional consultants expedite resolution, often achieving favorable outcomes without litigation.
Their expertise prevents costly mistakes and ensures compliance with procedural requirements.
Peace of Mind
With experts handling your GST notice, you can focus on core business operations while ensuring
proper legal protection and compliance.
Prevention: Avoiding Future GST Notices
Implement Robust Systems
Automated Compliance Software: Invest in GST-compliant accounting software that auto-populates
returns and flags discrepancies before filing.
Regular Reconciliation: Monthly reconciliation of books with GSTR-2A/2B prevents accumulation of
ITC mismatches.
Vendor Verification: Regularly verify that your suppliers are filing their returns timely to ensure your
ITC claims are valid.
Timely Filing
Set internal deadlines 3-5 days before official due dates, creating buffers for last-minute issues. Enable
automated reminders for all compliance dates.
Maintain Accurate Records
Follow these documentation practices:
 Issue proper tax invoices with all mandatory fields
 Maintain sequential invoice numbering without gaps
 Keep digital and physical copies of all documents for at least 6 years
 Document the basis for tax rate determination and exemption claims
Regular GST Health Checks
Conduct quarterly internal audits reviewing:

7.  Return accuracy and consistency
 ITC claim validity
 Tax payment timeliness
 E-way bill compliance
 Overall GST position reconciliation
Professional Support
Engage experienced accounting firms like Patron Accounting LLP for periodic compliance reviews,
ensuring continuous adherence to evolving GST regulations.
Stay Updated
GST laws undergo frequent amendments. Subscribe to official notifications, attend webinars, and
maintain relationships with tax professionals to stay informed about regulatory changes.
Frequently Asked Questions (FAQs)
What should I do immediately after receiving a GST notice?
Read the notice carefully, note the response deadline, identify the specific issue raised, gather relevant
documentation, and consult a GST professional if the matter is complex. Don't ignore it or delay
response.
Can I resolve a GST notice online?
Yes, most GST notices can be responded to through the GST portal under 'View Notices and Orders.'
You can upload your reply along with supporting documents digitally, though some cases may require
physical hearings.
How long do I have to respond to a GST notice?
Typically, you have 30 days from the notice issuance date, though this varies by notice type. The specific
deadline is mentioned in the notice itself. You can request extensions with valid justification.
What happens if my response deadline has passed?
You can still file a belated response with an application explaining the delay. The officer may accept it
depending on circumstances. However, this may lead to adverse orders or penalties, so seek
immediate professional help.
Will a GST notice affect my business credit rating?
Unresolved GST notices leading to defaults, penalties, or litigation can negatively impact your credit
score and business creditworthiness. Timely resolution prevents such consequences.
Can I appeal if I disagree with the GST department's decision?
Yes, GST law provides a hierarchical appeal mechanism. You can appeal to the First Appellate Authority
within three months of the order, then to the Appellate Tribunal, and subsequently to higher courts.
Conclusion

8. Receiving a GST Notice is a common aspect of tax compliance that requires prompt, informed action
rather than panic. Understanding the types of notices, reasons for issuance, and appropriate response
strategies empowers you to handle these situations effectively. Whether you're dealing with
mismatches in returns, ITC discrepancies, or filing delays, timely and accurate responses can resolve
issues efficiently while minimizing financial and legal consequences.
Prevention through robust compliance systems, regular reconciliation, and professional guidance
significantly reduces the likelihood of receiving notices. However, when notices do arrive, partnering
with experienced GST Notice consultants ensures technically sound responses and optimal outcomes.
Take Action Today
Don't navigate GST complexities alone. Patron Accounting LLP specializes in comprehensive GST
compliance and notice resolution services tailored for startups, SMEs, corporates, professionals, and
NRIs across India. Our team of experienced chartered accountants and tax consultants provides:
 24-hour notice review services
 Expert representation before tax authorities
 End-to-end documentation support
 Strategic compliance solutions
 Preventive audit services
Contact Patron Accounting LLP today for a confidential consultation about your GST notice. Let our
expertise transform your tax challenges into compliance confidence. Reach out via our website, call
our helpline, or visit our offices for personalized assistance.
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Protect your business, ensure compliance, and achieve peace of mind with Patron Accounting LLP—
your trusted partner in GST matters.