A GST “notice” can mean a request to explain a return discrepancy, the start of an audit, a proposal to recover tax, or an order that has already determined dues. The form number and statutory section—not the word notice by itself—show where you are in the process.
For India’s Central GST framework, the main routes are return scrutiny (ASMT-10, ASMT-11 and ASMT-12), audit (ADT-01 and ADT-02), special audit (ADT-03 and ADT-04), show-cause or demand proceedings (often accompanied by a DRC-01 summary and answered in DRC-06), and a later demand order summarized in DRC-07. State GST administrations generally follow aligned legislation, but the served document, applicable enactment, current rules and portal instructions control your case.
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At a glance: what each GST notice means
Use this table to identify the procedural stage before preparing a reply. The forms listed are those described in the Central Board of Indirect Taxes and Customs (CBIC) rules materials; amendments or a state-specific procedure may change the details.
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| Notice or step | What it generally does | Forms commonly surfaced | Your immediate focus |
|---|---|---|---|
| Return scrutiny | Flags a discrepancy in a filed return and asks you to explain it or accept and address it. | ASMT-10 for the discrepancy; ASMT-11 for your explanation or acceptance/payment information; ASMT-12 when the explanation is accepted. | Reconcile every flagged item with returns, ledgers, invoices and payment records, then respond by the date written in the notice. |
| Tax-authority audit | Starts a broader examination of books, records, returns and tax treatment for a specified period. | ADT-01 notice under the section 65 audit process; ADT-02 communicates findings. | Confirm the period and scope, preserve records and prepare a reconciliation that an auditor can follow. |
| Special audit | Directs an audit by a chartered accountant or cost accountant specified under the statutory procedure. | ADT-03 direction; ADT-04 findings. | Read the direction and scope closely and obtain professional assistance if the accounting or valuation issues are complex. |
| Show-cause or demand proceeding | Gives you an opportunity to answer an allegation and a proposed tax, interest, penalty or other action under a cited provision. | A covered notice may have an electronic DRC-01 summary; DRC-06 is the reply form when that summary has been uploaded. DRC-03 may be used for a payment intimation in the circumstances allowed by the rules. | Identify the legal section, allegations, tax period, calculations, evidence requested, reply route and deadline. |
| Demand order | Records an adjudicative decision determining specified dues after the proceeding. | DRC-07 is the electronic summary of specified orders and is treated in the rules as the notice for recovery. | Separate a decided liability from a proposal and promptly assess payment, appeal and recovery consequences. |
The underlying notice and legal provision remain important even when a form summary appears on the portal. A DRC-01 summary is not, by itself, a substitute for understanding the full notice and its reasoning.
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What is a GST scrutiny notice? (ASMT-10)
Scrutiny is a return-level check. An officer selects a return and identifies an apparent discrepancy—such as a mismatch or an unusual figure—then asks the registered person to explain it. The central assessment and audit rules identify FORM GST ASMT-10 for this discrepancy communication. The form does not automatically mean that tax has already been adjudicated or that an audit has begun.
How the scrutiny sequence works
- ASMT-10: Read each discrepancy, the return period and the explanation or documents requested. Compare the notice with the actual returns and any schedules cited.
- ASMT-11: Submit your explanation, or communicate acceptance and the payment information required by the applicable procedure. Address each item separately rather than sending an unstructured narrative.
- ASMT-12: If the explanation is accepted, the officer communicates that outcome in ASMT-12. Keep the communication with your records because it shows how that scrutiny episode ended.
The forms and their functions are set out on CBIC’s Assessment and Audit Rules page. Scrutiny can lead to further action if the explanation is not accepted, so an apparently small mismatch should still receive a complete, evidence-backed answer.
How to answer an ASMT-10 discrepancy
- Copy the notice’s item number or description into a response schedule.
- State the figure reported in the return, the figure in the underlying books or invoices, and why they differ.
- Attach or reference the relevant invoices, credit or debit notes, e-way records, reconciliations, payment challans and prior correspondence.
- Explain timing differences, amendments, reverse-charge treatment, exempt or non-taxable supplies and other classifications only where they actually apply.
- If an error is admitted, state the corrective action and payment details required by the notice and current rules instead of making a vague promise to “reconcile later.”
What is a GST audit notice? (ADT-01 and ADT-02)
An audit is broader than scrutiny. Under the section 65 audit procedure, an officer examines records and returns for a period, along with the tax treatment applied to transactions. The rules identify FORM GST ADT-01 as the audit notice and ADT-02 as the communication of audit findings. The audit may therefore test books, trial balances, invoices, contracts, input-tax-credit support and reconciliations rather than asking about one isolated return line.
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- Write down the financial years or tax periods covered and the records specifically requested.
- Appoint one person to control submissions so that versions, explanations and dates are consistent.
- Build a period-wise reconciliation from the general ledger to GSTR-1, GSTR-3B and other returns relevant to your business.
- Organize sales, purchase, inventory, fixed-asset, credit-note, refund and input-tax-credit files in the same order as the auditor’s request.
- Record what was supplied, when it was supplied and any question that remains open.
When ADT-02 communicates findings, read each finding as an identified issue, not as an automatic final demand. Determine whether the finding requires additional records, a correction, a legal response or a later demand proceeding under the cited provision.
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What is a special audit? (ADT-03 and ADT-04)
A special audit is a distinct statutory route. The direction uses ADT-03 and specifies an audit by a chartered accountant or cost accountant; findings are communicated in ADT-04. It is not simply another name for a routine scrutiny letter or the section 65 audit notice.
Check who has been appointed, the transactions and period within scope, and the accounting, valuation or credit questions the direction identifies. Give the appointed professional complete, traceable records and preserve a copy of every submission. Because a special audit can involve technical accounting and indirect-tax judgments, a chartered accountant, cost accountant or GST lawyer can help you frame explanations without conceding an issue unintentionally.
How a GST show-cause notice and demand proceeding work
A show-cause notice (SCN) asks why proposed action or liability should not be imposed under the legal provision cited in the notice. It is an opportunity to answer allegations before an adjudicative decision. Depending on the provision and proceeding, the electronic record may include a FORM GST DRC-01 summary. The summary gives key particulars, but the complete SCN, calculations, annexures and statutory basis must be read together.
Replying through DRC-06
Where a DRC-01 summary has been uploaded with the notice, the rules identify FORM GST DRC-06 for the reply. Use the response channel and form stated in the served notice and applicable rules. A reliable reply usually contains:
- Identification: GSTIN, legal name, notice reference number, date of service and tax period.
- Issue-by-issue response: Answer every allegation under a matching heading; do not rely on a general denial.
- Legal position: Quote or clearly identify the statutory provision and explain why it does or does not apply to your facts.
- Numbers: Recalculate tax, interest and penalty figures, showing assumptions and credit for amounts already paid.
- Evidence index: Number each attachment and refer to that number in the paragraph where it is used.
- Relief requested: State whether you seek dropping of the proposal, correction of a calculation, acceptance of payment or another specific outcome.
Submit the reply before the stated deadline, retain the acknowledgement and download the filed form and attachments. If the portal does not accept a file or the notice gives an alternate channel, preserve screenshots and the help-desk or officer correspondence showing your attempt and follow the instructions in the notice.
Is a demand notice the same as a show-cause notice?
No. A show-cause notice proposes liability and invites your response. A demand order is the later decision determining specified dues. The rules provide DRC-07 as the electronic summary of specified orders and treat that summary as the notice for recovery. Therefore, receiving DRC-07 signals a different stage from receiving DRC-01: review the order’s reasoning, the amount and the available appeal or payment steps immediately.
Some notices also refer to DRC-03 for a payment intimation. Do not assume that filing a payment form alone closes a proceeding; match the payment, acknowledgement and any remaining reply or order requirements to the notice and governing provision.
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What to do when any GST notice arrives
Use this workflow before contacting the officer or uploading a response.
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- Authenticate the document. Confirm the GSTIN, legal name, reference number, date, issuing authority and the portal record. Save the original PDF and all annexures.
- Locate the form and section. ASMT-10 points to scrutiny; ADT-01 to an audit; ADT-03 to a special audit; a DRC-01 summary usually accompanies a covered demand or SCN; DRC-07 indicates an order stage. The statutory section controls if the label and form appear inconsistent.
- Mark the deadline. Use the date written in the served notice, including any instructions on extensions or personal hearings. Calendar an internal deadline several days earlier.
- Define the issue. Write a one-sentence description of what the authority says happened, the period involved and the amount or action proposed.
- Reconcile the numbers. Tie each allegation to returns, ledgers, invoices, e-way bills, contracts, bank records, credit notes and tax payments as relevant.
- Prepare a point-by-point response. Separate facts, documents, legal analysis and the outcome you request. Explain discrepancies rather than simply attaching a large data dump.
- File through the specified route. For a covered DRC-01 notice, use DRC-06 as identified by the rules; for scrutiny, follow the ASMT-11 route; for other notices, follow the form and portal instructions actually served.
- Preserve proof. Keep the acknowledgement number, filed PDF, attachments, payment challans and a copy of every communication.
Deadlines: why you should not copy a universal number
GST response periods depend on the governing section, the type of proceeding, the version of the rules and the wording of the notice. CBIC materials have shown different wording for ASMT-10 in different compilations: an older compilation refers to up to 30 days (with further time where permitted), while the current CBIC assessment-and-audit page has displayed a period not exceeding 15 days. That difference is a reason to verify the current text, not to select the shorter or longer number by guesswork.
For every notice, treat the served deadline as controlling unless the issuing authority grants a valid extension. Check the current CBIC Assessment and Audit Rules, the applicable CGST Rules compilation and any later amendment before relying on a period. The CGST Act and the rules compilation at CBIC’s demand and recovery forms PDF are primary references, but a dated PDF may not contain every later change.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Documents and controls that make a reply credible
- Return files and workings for every period cited.
- General ledger, trial balance and tax ledgers reconciling to reported figures.
- Tax invoices, debit and credit notes, purchase registers and sales registers.
- Input-tax-credit reconciliations and evidence supporting eligibility.
- E-way bills, delivery records, contracts and proof of payment where the allegation concerns supply or valuation.
- Import documents, reverse-charge calculations, refund records or export evidence where relevant.
- Earlier replies, acknowledgements, orders and payment challans for the same issue.
Use a document index with stable file names and a calculation workbook that shows the source for each number. Redact unrelated personal data, but do not remove information needed to verify a transaction.
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Treating every notice as a final demand
An ASMT-10 discrepancy and an ADT-01 audit notice are not orders determining tax. Read the stage and respond to what is actually requested.
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Replying only to the summary
DRC-01 is a summary accompanying a covered notice. Ignoring the underlying SCN, annexures or statutory section can leave material allegations unanswered.
Using one generic deadline
Periods vary by notice and legal version. The date in your served document and a valid extension matter more than an online article’s estimate.
Sending documents without an explanation
Unindexed attachments force the officer to reconstruct your case. Map every allegation to a fact, calculation and attachment.
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Waiting until a large liability is already ordered
If the notice alleges fraud or suppression, proposes substantial tax, or raises a contested interpretation, obtain advice promptly. An accountant or GST lawyer can test the calculation, preserve objections and assess appeal strategy before recovery consequences intensify.
When professional GST help is appropriate
A straightforward arithmetic mismatch may be handled in-house if your records are complete and the notice is clear. Consider a qualified GST practitioner, chartered accountant, cost accountant or tax lawyer when the notice involves alleged fraud or suppression, valuation, classification, input-tax-credit eligibility, related-party transactions, multiple periods, a special audit, a substantial proposed amount or a demand order. Ask the adviser to confirm the exact form, statutory section, deadline, calculations, evidence gaps and whether payment, rectification or appeal is available. Suitability depends on the notice and your facts; no professional can replace reading the served document itself.
Central and state GST: what can differ
State GST enactments are generally aligned with the Central GST framework, so the form families may look familiar. Administration, issuing authority, portal messages, local amendments and procedural directions can differ. If the notice cites a state enactment or comes from a state authority, check that enactment and its current rules rather than assuming every Central GST instruction applies unchanged.
Bottom line
Identify the procedural stage first: ASMT-10 asks you to explain a return discrepancy; ADT-01 starts a regular audit; ADT-03 starts a special audit; a DRC-01 summary accompanies a show-cause or proposed-demand proceeding; and DRC-07 records a later demand order used for recovery. Then reconcile the figures, answer every allegation through the route named in the notice, preserve proof of filing and treat the written deadline and current law as controlling.
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