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GST Notice

GST Notice Received? We Know the Playbook.

From ITC mismatch notices to show-cause orders under Section 73/74, our GST specialists have handled hundreds of notices. We prepare watertight replies with reconciliation statements, supporting invoices, and case-law references.

DRC-01 / DRC-07 specialistsITC reconciliation experts400+ GST notices resolved

Common GST Notices We Handle

ASMT-10 — Scrutiny Notice

Common

Issued when the officer finds discrepancies in your GSTR-3B vs GSTR-1, or turnover mismatch with ITR. You must respond in ASMT-11 within 30 days. We prepare detailed reconciliation statements.

DRC-01 — Show Cause Notice (Section 73/74)

High

Issued for demand of tax not paid, short paid, or ITC wrongly availed. Section 73 covers non-fraud cases (3-year period), Section 74 covers fraud/suppression (5-year period with 100% penalty). We draft legal submissions.

DRC-07 — Demand Order

Critical

This is the final order after adjudication. If you did not respond to DRC-01, the demand becomes final. We file appeals before the GST Appellate Authority within 3 months and apply for pre-deposit waiver.

What happens if you ignore it?

Tax + Interest + Penalty

Under Section 73, penalty is 10% of tax or Rs 10,000. Under Section 74 (fraud), penalty is 100% of tax. Interest accrues at 18% p.a. from the due date.

E-Way Bill Blocked

If you have unpaid GST demands, your e-way bill generation can be blocked, effectively halting your goods transportation and business operations.

ITC Reversal

The department can reverse your entire ITC claim for the period in question, plus demand interest at 24% if the ITC was wrongly availed and utilised.

GST Registration Cancellation

Persistent non-compliance or suppression can lead to cancellation of your GST registration under Section 29, making it illegal to collect or claim GST.

How We Handle Your GST Notice

01

Notice Review

We analyse the notice type (ASMT-10, DRC-01, DRC-07), determine the demand period, and identify the key issues — ITC mismatch, turnover difference, or classification dispute.

02

Data Reconciliation

We reconcile your GSTR-1, GSTR-3B, GSTR-2B, e-invoice data, and books of accounts. We prepare a detailed reconciliation statement identifying every difference.

03

Reply Drafting

We draft the reply in ASMT-11 or DRC-06 format with supporting documents, case-law references, and advance ruling citations. Every claim is backed by documentary evidence.

04

Filing & Hearing

We file the reply on the GST portal, attend personal hearings on your behalf, and follow up until the order is passed. If unfavorable, we file the appeal with pre-deposit.

From Our Case Files

Problem

A textile trader received a DRC-01 notice under Section 74 demanding Rs 28 lakh for alleged ITC fraud based on 3 supplier GSTINs flagged as non-existent by the department.

What We Did

We proved the supplier GSTINs were active at the time of transaction using GST portal screenshots, bank payment proofs, e-way bills, and lorry receipts. We cited the Madras HC ruling that ITC cannot be denied to a bona fide buyer for supplier defaults.

Result

The adjudicating authority dropped the demand entirely and passed an order in favour of the taxpayer. Total demand saved: Rs 28 lakh tax + Rs 28 lakh penalty + Rs 8.4 lakh interest.

Related Resources

GST demands compound fast. Respond before it gets worse.

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