Introduction

Receiving a GST notice can be stressful for any business. However, understanding why these notices are issued and how to respond effectively can resolve the issue without penalties or litigation. At Pockettax, Kerala’s trusted GST service provider, we help businesses handle GST notices efficiently and maintain compliance without stress.

Here is a simple guide explaining the types of GST notices, reasons why they are issued, and how to respond correctly.

Types of GST Notices

1. GSTR-3A Notice (Non-Filing of Returns)

What is it?
Issued when a registered taxpayer fails to file GST returns (GSTR-1, GSTR-3B, or others) on time.

Response:
File the pending return immediately along with applicable late fees and interest to avoid further action.

2. GST ASMT-10 (Discrepancy Notice)

What is it?
Issued when the tax department finds discrepancies between returns filed, such as mismatch in sales reported in GSTR-1 and GSTR-3B.

Response:
Review the discrepancy, file a reply explaining the difference, and pay any shortfall in tax if applicable. PocketTax helps clients reconcile returns and draft accurate replies for such notices.

3. GST REG-03 (Clarification Notice for Registration)

What is it?
Issued if the department needs clarification or documents for processing your GST registration application.

Response:
Provide the required documents or explanations within 7 working days to avoid rejection of registration.

4. GST CMP-05 (Composition Scheme Eligibility Notice)

What is it?
Issued to composition scheme taxpayers if the department doubts their eligibility for the scheme.

Response:
Submit proof of eligibility within the specified time or your scheme benefits may be withdrawn.

5. Show Cause Notice (SCN) for Cancellation of Registration

What is it?
Issued when the department intends to cancel your GST registration due to non-compliance, non-filing, or other reasons.

Response:
Reply to the notice within the given time (usually 7-30 days) with explanations and compliance proofs. PocketTax assists businesses in drafting effective replies to prevent cancellation.

6. Demand Notice (Section 73 or 74)

What is it?
Issued for tax demands due to underpayment, wrong ITC claims, or suppression of sales.

Section 73: For non-fraud cases
Section 74: For fraud, wilful misstatement, or suppression

Response:
Analyse the notice, calculate tax, interest, and penalty, and pay dues if correct. If not, file a detailed reply with supporting documents. Professional assistance from PocketTax ensures accurate assessment and legal compliance.

7. Audit Notice

What is it?
Issued when your business is selected for departmental audit under Section 65 of the GST Act.

Response:
Prepare all records, returns, and invoices for audit review. Pockettax supports clients in preparing documents and representing them during audits.

Common Reasons for Receiving GST Notices

✅ Non-filing or late filing of returns
✅ Mismatch in GSTR-1 and GSTR-3B data
✅ Excess or ineligible ITC claims
✅ Non-payment or short payment of tax
✅ Wrong classification of goods/services (HSN/SAC codes)
✅ Suspicious transactions detected through data analytics

How to Respond to GST Notices Effectively

Read the notice carefully. Understand the type, reason, and deadline for response.
Collect relevant documents and reconcile records to identify discrepancies.
Draft a clear and professional reply addressing each point raised in the notice.
File the reply within the stipulated time through the GST portal.
Seek professional help if the notice involves complex issues or tax demands.

How PocketTax Helps Businesses Handle GST Notices

At PocketTax, we ensure that our clients never face GST notices alone. Our GST notice management services include:

✅ Analysing the notice and explaining it to you in simple terms
✅ Verifying records to identify errors or mismatches
✅ Drafting accurate and compliant replies
✅ Calculating tax, interest, or penalties if payable
✅ Representing you before GST officers for hearings or audits

Conclusion

Receiving a GST notice does not always mean a penalty or litigation. With the right knowledge and expert guidance, you can respond confidently and resolve the issue efficiently. Pockettax, Kerala’s trusted GST partner, is here to manage your notices and keep your business compliant and stress-free.

Contact Pockettax today for professional assistance with GST notices and all your compliance needs.

GST Notices: Types, Reasons, and How to Respond