For any business owner, receiving a notice from the tax department can be quite upsetting. However, the government uses notices to ask taxpayers for both proactive and reactive attention regarding compliance issues because the GST framework is predicated on self-assessment and self-certification.
To prevent legal problems, it is essential to comprehend the purpose of these notices and how to respond to them. The various GST notice types (including ASMT 10), acceptable delivery methods, and how contemporary tools like the Sepfust GST Notice Extractor can simplify compliance are all covered in this guide.
A GST Notice: What Is It?
According to the general definition, a "notice" is information or a warning given about something that will occur in the near future. GST notices are formal communications sent by the GST Authorities.
A notice can take a variety of forms, depending on the gravity of the default or the action required, including a Show Cause Notice (SCN), Scrutiny Notice, or Demand Notice. These are frequently used to warn taxpayers about defaults or to request regular information.
Common Reasons for Receiving GST Notices
GST authorities may issue notices based on hints gathered while reviewing returns or information obtained from other government departments. Some of the most common reasons are:
- Non-Registration: You are liable but have not obtained GST registration.
- Filing Delays: Failure to file GSTR-1 and GSTR-3B consecutively for more than six months.
- Mismatches: Differences between details reported in GSTR-1 and GSTR-3B.
- Inconsistent Declarations: A mismatch between GSTR-1 and the e-way bill portal.
- ITC Discrepancies: Input Tax Credit (ITC) claims made in GSTR-3B versus GSTR-2A, check GSTR2B vs PR Reconciliation inside SAP process
- Non-Payment of Tax: Underpayment or nonpayment of GST liability, with or without intent to defraud.
- Anti-profiteering: Prices remain unchanged despite lower GST rates.
Types of GST Notices
Under the GST laws, various notices are required for specific purposes. The following is a list of common GST notice types, forms, and required actions.
| Form Name | Section/Rule | Description | Action to be Taken |
| GSTR-3A | Rule 68 | Default notice to non-filers of returns (GSTR-1, 3B, etc.) | File GST returns along with late fees and interest. |
| ASMT-10 | Rule 99(1) | Scrutiny Notice: Intimating discrepancies in the GST return after scrutiny. | Reply in form ASMT-11 giving reasons for the discrepancy. |
| REG-03 | Rule 9(2) | Clarification required on information provided in registration application. | Reply in form REG-04 with clarification and documents. |
| CMP-05 | Rule 6(4) | SCN questioning eligibility to be a composition dealer. | Provide justification in form CMP-06. |
| DRC-01 | Rule 142(1)(a) | SCN for demand of tax (served along with DRC-02). | Reply in form DRC-06 or pay via DRC-03. |
| PCT-03 | Rule 83(4) | SCN for misconduct by a GST practitioner. | Provide necessary justification within the prescribed time. |
| ASMT-14 | Rule 100(2) | SCN for Best Judgment Assessment under Section 63. | Appearance before the concerned authority. |
Valid Modes of Sending GST Notices
According to Section 169(1) of the CGST Act, 2017, the department can communicate notices using the following modes:
- Digital: Communication sent to the email address provided during registration or made available on the GST portal after logging in.
- Physical Delivery: Hand-delivered to the taxpayer or their designated representative.
- Post: Registered post, speed post, or courier, with acknowledgement required.
- Publication: In a regional newspaper distributed within the taxpayer's area.
- Affixing: If other methods fail, place the notice in a prominent location at the business/residence or on the tax authority's notice board.
Note: A taxpayer is not required to act on a notice if it is received in a manner other than those specified by GST law.
Consequences of Non-Compliance
A taxpayer must act or respond to notices within the specified time frame. Failure to do so may result in legal trouble, with authorities imposing penalties such as fines and prosecution.
How to Manage GST Notices Efficiently
With an emphasis on digitalization, the GST system is designed so that responses to notices can be submitted online. However, keeping track of notices across multiple GSTINs, ensuring timely responses, and avoiding penalties can be overwhelming.
This is where the Sepfust GST Notice Extractor comes in.
Why Use GST Notice Extractor?
Managing notices manually often leads to missed deadlines and non-compliance. Our tool solves the problem of notice management by offering:
- Real-time Alerts: Never miss a deadline. Get instant notifications as soon as a notice (like ASMT 10 or GSTR-3A) is issued.
- ERP Integration: Seamlessly integrate the tool with your existing ERP system. This allows you to track notices directly within your financial workflows without logging into the GST portal repeatedly.
- Centralized Tracking: View and manage notices for multiple GSTINs from a single dashboard.
To learn more about automating your compliance and avoiding penalties, check out our tool here:
Conclusion
It is always advisable to be on the "right" side of the law in order to avoid being "left out." Understanding the different types of GST notices and utilizing smart management tools will help you keep your business compliant and penalty-free.
SEPFUST automates tax/finance for SAP/Oracle ERPs. Their GST Notice Extractor offers real-time tracking on a unified dashboard, preventing missed deadlines.
Rishi Raj
Rishi Raj is a marketing professional with strong domain expertise in Finance and Technology, bringing over 3+ years of experience in driving growth-led marketing initiatives. He has a proven track record in building scalable go-to-market strategies, demand generation, and positioning technology products for measurable business impact.