To reply to a GST notice, first identify the section of the CGST Act 2017 it is issued under - scrutiny under Section 61, a demand under Section 73 or 74, a penalty under Section 122, or detention of goods under Section 129 - because the section decides the form you file, the deadline you work to, and the officer you answer. Then file a written reply on the GST portal before the date shown, attaching the documents the notice asks for.
This guide explains, step by step, how to read a GST notice, which form is used for which kind of notice, the deadlines that actually matter, how to draft a reply that stands up, and how it is filed on the portal. It is written for traders, professionals and small businesses in Kolkata and across West Bengal who have received a notice from the State GST or Central GST authorities.
Read the notice before you do anything else
Most of the mistakes in GST replies are made in the first ten minutes, by a person who answers before reading. A notice carries everything you need within its own four corners. Note these five things:
- The section under which it is issued and the form number printed on it.
- The Document Identification Number (DIN) - a genuine GST communication carries one, and it can be verified on the portal.
- The proper officer and the jurisdiction named, which tells you which office and which appellate forum will follow.
- The tax period and financial year in dispute, and the exact demand or discrepancy stated.
- The date by which the reply must reach the officer, and whether a personal hearing has been offered.
The same notice is usually visible on the portal under the Notices and Orders section of your GST login, which is also where you will eventually file the reply. If a notice arrives that carries no DIN or cannot be seen on the portal, satisfy yourself that it is genuine before spending time on it.
Which section is your notice issued under?
The section decides everything. The table below sets out the notices a business most often receives.
| Section and nature of notice | What it usually means | How it is normally answered |
|---|---|---|
| Section 61 - scrutiny of returns | The officer has found a discrepancy between your returns and the records | A reply to the scrutiny notice (form ASMT-10) in the prescribed reply form (ASMT-11), within the period stated |
| Section 73 - demand for tax without fraud | Tax is said to be short paid, not paid, or wrongly refunded, with no allegation of fraud, suppression or wilful misstatement | A reply to the show cause notice (DRC-01), or payment of tax with interest through DRC-03 and intimation to the officer |
| Section 74 - demand with fraud alleged | The demand alleges fraud, suppression of facts or wilful misstatement, and normally carries a heavier penalty | A reply to the show cause notice (DRC-01); the stakes are higher and the reply needs more care |
| Section 122 - penalty for specified offences | The department alleges a specified offence such as issuing an invoice without supply | A show cause reply setting out why the offence does not apply, or mitigation on the penalty |
| Section 129 - detention of goods in transit | Goods and the accompanying documents have been detained during movement | A reply to the detention notice, and payment of tax and penalty where the goods and documents cannot be explained |
Where the department wants to give you a chance to pay before a formal show cause notice, it issues an intimation in Form DRC-01A. Responding to it in time can settle a matter before any demand order is passed, and it is often the cheapest point at which to close the issue.
The deadlines that actually matter
A missed deadline is the single most common reason a good case is lost, because the officer is then entitled to proceed on the material before him. Read the dates on your own notice, and treat the following as the usual pattern rather than a substitute for the document in your hand.
- Scrutiny under Section 61: the reply to the scrutiny notice is generally due within about 30 days, though the notice may give a shorter or longer period.
- Show cause notice under Section 73 or 74: the reply period is stated in the notice, commonly around 30 days.
- Order: under Section 73 an order is generally to be passed within three years of the due date of the annual return for the year concerned, and under Section 74 within five years. These outer limits are fixed by the statute and are the same whether the notice is small or large.
- Appeal: an appeal to the Appellate Authority under Section 107 is to be filed within three months, with a further one month available for condonation of delay on sufficient cause.
- Pre-deposit for the appeal: normally 10 per cent of the tax in dispute for an order under Section 73 or 74.
Because the figures depend on the current schedule and on your own notice, confirm the amount and the last date from the notice and the rules before you rely on any general description.
How to draft a reply that works
A reply is a legal document, not a letter of explanation. Deal with each paragraph of the notice in the same order it is written, and for each one say either that the demand is admitted, or that it is disputed and on what basis.
- State the facts of the tax period and the returns filed, quoting the GSTR-1, GSTR-3B and, where relevant, the GSTR-2B figures.
- For a mismatch or an input tax credit issue, give a reconciliation showing how the difference arises and attach it as an annexure.
- Where a document or an invoice was missed, produce it and explain the omission.
- Where the officer has misread the law, state the provision you rely on and the correct position.
- Where you accept the demand, say so clearly and pay through DRC-03 rather than leaving it open.
- End with a verification clause and sign through the authorised signatory.
A one line reply that says only that the demand is wrong rarely helps. A short reply that answers each allegation with a document, and admits what should be admitted, is what makes an officer drop a demand or reduce a penalty.
Filing the reply on the GST portal
The reply is filed online, and a physical copy is served on the jurisdictional office so that there is no dispute about the date it reached the officer.
- Log in to the portal and open the Notices and Orders, or Additional Notices and Orders, section.
- Open the notice, download it, and select the option to file a reply.
- Attach the reply and its annexures as a PDF, and enter any figures the form asks for.
- Submit, and note the acknowledgement reference the portal generates.
- Serve a copy on the jurisdictional office with proof of filing, and keep the acknowledgement with the file.
Where you have also paid through DRC-03, attach the payment reference to the reply, because the officer has to see both the money and the explanation to close the matter.
Mistakes that turn a reply into a demand order
- Ignoring the notice and assuming the officer will drop the matter on his own.
- Paying the tax through DRC-03 but not intimating the officer or filing the reply, leaving the notice unanswered on the portal.
- Filing a reply that does not address each paragraph of the notice.
- Not keeping proof of the filing date, so that the reply cannot be shown to have been in time.
- Failing to appear for a personal hearing that has been offered, when appearance is often what settles the matter.
How GST notices are dealt with in West Bengal
For State GST, the Directorate of Commercial Taxes, West Bengal administers the tax through its wards and circles, while Central GST matters are handled by the CGST Commissionerate for the area. A Kolkata business may therefore receive a notice from either authority, and the appeal from an order of the adjudicating authority lies first to the Appellate Authority and thereafter to the GST Appellate Tribunal. If you are not sure who has issued the notice, the DIN and the jurisdiction named on it will tell you. Readers who want the broader picture of how notices are handled locally may find this guide to responding to a GST notice in Kolkata useful.
A reply that has been prepared with the help of a lawyer is often shorter and stronger, because the lawyer knows which paragraph carries the demand and which can be conceded. Professional help with a GST notice reply sets out what that assistance covers.
When a reply is not enough
Some notices cannot be closed by correspondence: a demand resting on a fraud allegation, an order that has already been passed, a threat of recovery, or attachment of a bank account. In those cases the remedy shifts to an appeal, a rectification application, or, in the right case, a writ petition before the Calcutta High Court. Legal help for a GST notice explains the options once the stage has moved past a simple reply.