Receiving a GST notice is unsettling. For most business owners, it arrives without warning: a letter from the department, sometimes hand-delivered, sometimes via the GST portal. The instinct is to panic, call everyone, and respond immediately.
That instinct is almost always wrong.
The actions you take in the first 48 hours after a GST notice often determine how the matter develops, and how it ends. Here is what to actually do.
1. Do not respond before you’ve read it carefully
This sounds obvious. It is not followed.
Most GST notices fall into one of these categories:
- ASMT-10 — Scrutiny notice, flagging discrepancies in your return
- DRC-01 — Summary of the adjudicating officer’s demand
- DRC-01A — Intimation before formal demand — gives you an opportunity to explain before the demand is issued
- ADT-01 — Notice for audit
- Summons under Section 70 — DGGI or other authority summoning you for information or statement
The required response, the timeline and the stakes are completely different for each type. Before you do anything, identify exactly what notice you have received and what it is asking for.
2. Note the deadline — and count it correctly
GST notices typically carry a response deadline. Count the days correctly. In many cases, the clock starts from the date on the notice, not the date of receipt. If the notice was sent to your registered email or uploaded to the portal, the department may consider it served from that date, even if you only discovered it later.
The standard response window is often 30 days. For some notice types, it can be shorter.
If you have missed the deadline, do not assume the matter is over. An application for extension of time, properly filed, is often accepted, but only if you act quickly.
3. Do not call the GST officer before you have a clear position
Many promoters instinctively call the GST officer to understand what the notice is about or to explain their position informally. This is a mistake.
Anything you say, even informally, can be used in the formal proceedings. An admission made on a phone call, or during an informal meeting, can close off arguments that would otherwise be available to you in writing. The department is not adversarial in tone, but the interaction is formal and consequential.
If you need clarification on what is being asked, seek it in writing.
4. Gather the documents referenced in the notice
The notice will typically refer to specific return periods, specific transactions or specific entries. Pull the relevant records immediately:
- The GSTR returns for the cited periods
- The underlying invoices and supporting documentation
- Your books of accounts for the relevant period
- Any previous correspondence with the department on the same issue
Do not wait until the response is due to start gathering documents. Tax records from three years ago take time to locate, and some may require coordinating with your accountant or ERP system.
5. Identify whether this is an isolated issue or part of something larger
Before drafting a response, ask: is this notice part of a wider scrutiny?
If the department has flagged one ITC mismatch, it is worth checking whether there are other periods or GST registrations with similar issues. If you respond to this notice in a way that concedes a position, it will affect how similar issues are treated, whether in the same notice or in future notices.
The response to one notice is also, in effect, a statement of your position on the legal issue it raises.
6. Understand what is actually being asked
GST notices often contain two things: a statement of the department’s view of the facts, and a request for your response to that view. They are not the same thing.
The department may say: “It appears from our records that you have availed ITC of ₹X on invoices that do not appear in GSTR-2A.” Your response needs to address this specifically, not just assert that your records are correct.
If the department’s factual premise is wrong, produce the evidence that demonstrates this. If the premise is correct but the legal conclusion is wrong, your response needs to address the legal issue, not the facts.
7. Do not send a response that concedes more than you intend
This is the most common mistake made in hastily prepared responses.
In the rush to respond before a deadline, businesses often file replies that contain:
- Admissions of facts that should have been denied
- An acceptance of the legal framework the department is using
- A partial payment of demand “without prejudice” that the department treats as a concession
- A request for more time that, in its phrasing, implies the underlying demand is valid
Every word in your reply to a GST notice is on the record. It will be cited in the demand order. It may be cited in appeal proceedings. Write accordingly.
When to involve a specialist immediately
Some notices should be escalated to a specialist immediately, before you take any steps at all:
- DGGI summons — These are more serious than a regular departmental notice. Do not appear without preparation.
- Notices involving ₹1 Cr+ in demand — The stakes justify specialist involvement from the start.
- Notices where the department has already conducted a search or visit — The department has formed a view; your response needs to be correspondingly careful.
- Notices that touch on ongoing transactions — A response that settles a point of law for past periods will affect how you treat the same transactions going forward.
The most costly mistakes in GST disputes happen early. A measured, well-constructed initial response, one that neither over-explains nor concedes unnecessarily, gives you the best possible position for everything that follows.
If you’ve received a notice and are not sure how to approach it, we’re happy to review it. A brief call is usually enough to assess the situation.