GST Notices Decoded: 15 Critical Types Every Business Must Know
GST authorities issue 15+ notice formats targeting different compliance failures. Understanding DRC-01 from ASMT-10 prevents ex-parte orders and cascading penalties.
Each notice carries specific deadlines and appeal routes. Missing responses crystallizes full tax demands with 100-300% penalties.
DRC-01: Show Cause Notice (Most Common)
Purpose: Tax demand under Section 73/74
Timeline: 30 days (non-fraud) / 15 days (fraud)
Amount: Principal + 18% interest + penalty
Response: Point-by-point reply + documents
Triggers: ITC mismatch, turnover suppression, wrong classification
DRC-01A: Pre-SCN Opportunity
Purpose: Voluntary payment before formal SCN
Timeline: 7 days maximum
Benefit: Reduced penalty (10-25% vs 100%)
Form: Statement of tax liability
Smart Move: Pay 50% + interest to close 80% cases.
ASMT-10: ITC Mismatch Notice
Purpose: GSTR-2B vs GSTR-3B discrepancy
(https://gstcomplianceexperts.i....n/types-of-gst-notic
Timeline: 30 days response
Common Issue: Supplier not filed GSTR-3B
Solution: Supplier coordination + DRC-03
Volume: 40% of all automated notices.
ASMT-16: Provisional Attachment
Purpose: Freeze bank accounts/property
Timeline: Challenge within 15 days
Amount: No limit (full exposure)
Impact: Business operations halt
Prevention: Respond DRC-01 within deadline.
REG-17: Registration Cancellation Threat
Purpose: Cancel GSTIN for non-compliance
Timeline: 7-30 days
Triggers: 6 months no filing, fake documents
Consequences: Fresh registration + penalties
EWB-23: E-way Bill Discrepancy
Purpose: Goods detention/release
Timeline: 10 days
Amount: 100% tax + penalty (up to 100%)
Solution: Documents + differential tax payment
Prevention: E-way validity check before dispatch.
REG-23: Registration Verification
Purpose: Physical verification demand
Timeline: 30 days
Required: Lease deed, photos, electricity bill
Failure: Registration suspension
RFD-08: Refund Rejection
Purpose: Reject refund claims
Timeline: 15 days appeal
Common: Export realization delay, wrong LUT
Solution: Supplementary documents
GST INS-01: Inspection Notice
Purpose: Physical inspection authorization
Timeline: Cooperate immediately
Scope: Stock, books, documents, digital records
Duration: Can extend multiple days
DRC-07: Tax Demand Summary
Purpose: Final demand post-SCN
Timeline: 30 days (pre-deposit 10% for appeal)
Legal: Full adjudication order
Next: Recovery certificate DRC-09
DRC-11: Recovery Communication
Purpose: Initiate attachment/sale
Timeline: 30 days objection window
Methods: Bank attachment, property auction
Last: High court writ jurisdiction
CMP-05: Composition Scheme Violation
Purpose: Interstate supply detection
Timeline: 30 days
Penalty: Full tax + 100% penalty
Option: Voluntary exit via CMP-04
GSTR-3C: Return Mismatch Notice
Purpose: GSTR-1 vs GSTR-3B difference
Timeline: 30 days
Auto-generated: Monthly for variances >₹1 lakh
Penalty Summary Table
Notice Type
Penalty %
Interest
Appeal Pre-deposit
DRC-01 (73)
10-25%
18%
10%
DRC-01 (74)
100%
18%
25%
ASMT-10
Variable
18%
10%
EWB-23
100%
None
Full tax
REG-17
₹25,000
None
None
Response Priority Matrix
CRITICAL (0-7 days): DRC-01A, EWB-23, REG-17
URGENT (8-15 days): DRC-01(74), ASMT-16
IMPORTANT (16-30 days): DRC-01(73), ASMT-10
ROUTINE: INS-01, REG-23
