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GST Notice Overview – Complete Guide by Mequintrax


A GST Notice is an official communication issued by the Goods and Services Tax (GST) Department of India to taxpayers when discrepancies, non-compliance, or irregularities are detected in GST returns, payments, or related filings. It is not always a penalty, but a request for clarification, additional documents, or corrective action.

Under the CGST Act, 2017, GST notices can be sent for various reasons such as mismatch of invoices, non-filing of returns, excess Input Tax Credit (ITC) claims, tax evasion suspicion, or incorrect GST registration details. Timely action is crucial — failure to respond within the stipulated period can lead to heavy penalties, late fees, and even prosecution.

At Mequintrax Digital Services, we specialize in GST Notice reply drafting, assessment support, and legal representation to ensure you stay fully compliant and avoid unnecessary financial loss. Our GST experts track every notice type — SCN (Show Cause Notice), ASMT Notices, DRC-01 to DRC-10 demands, and audit notices — providing fast, accurate, and legally strong responses.


What is a GST Notice?

A GST Notice is an official communication issued by the Goods and Services Tax (GST) Department of India to a registered taxpayer when the tax authorities detect errors, mismatches, or instances of non-compliance in GST returns, payments, or related documents.

It acts as a formal intimation or warning that the taxpayer must provide clarifications, submit additional records, pay outstanding tax, or rectify discrepancies within a specified time frame. GST Notices can be issued under different sections of the CGST Act, 2017 depending on the reason — such as delayed filing, incorrect Input Tax Credit (ITC) claims, under-reporting of sales, or suspected tax evasion.


Key Points about GST Notices:


    • Issued for compliance  verification  or  tax recovery.
    • May  require  supporting  documents  and  explanations.
    • Must  be  responded  to  within  the  deadline  to  avoid  penalties.
    • Different types exist, including  Scrutiny Notices, Show Cause Notices (SCN), Audit Notices, and Demand Notices.


    Ignoring a GST Notice can result in hefty penalties, interest, blocking of GSTIN, or even prosecution. At Mequintrax Digital Services, we provide expert GST notice reply drafting, documentation support, and legal representation to ensure your compliance is accurate and timely.

Types of GST Notices in India

  • The Goods and Services Tax (GST) Department of India issues different types of GST notices under the CGST Act, 2017 to ensure compliance, recover unpaid taxes, or seek clarification from taxpayers. Understanding the types of GST notices and their purpose is essential to respond correctly and avoid penalties, interest, or GST registration cancellation.

    At Mequintrax Digital Services, we handle every type of GST notice with expert drafting, documentation, and representation — ensuring your business remains compliant and penalty-free.


    1. Notice under Section 61 – Scrutiny of Returns


    • Purpose: Issued when the GST officer finds mismatches in GST returns (GSTR-1, GSTR-3B) compared with tax payments or ITC claims.
    • Example: Difference in outward supply reported in GSTR-1 vs. tax paid in GSTR-3B.
    • Action Required: Submit an explanation with supporting documents or rectify the returns.

    2. Notice under Section 73 – Tax Shortfall without Fraud

    • Purpose: Issued when GST authorities detect short or non-payment of tax due to errors or negligence, without fraud or intent to evade.
    • Penalty: Up to 10% of the tax due or ₹10,000, whichever is higher.

    3. Notice under Section 74 – Tax Shortfall with Fraud

    • Purpose: Issued when there is tax shortfall or wrong ITC claim due to fraud, willful misstatement, or suppression of facts.
    • Penalty: 100% of the tax amount, plus interest.

    4. Notice under Section 62 – Best Judgment Assessment

    • Purpose: If a registered taxpayer fails to file GST returns despite reminders, the department assesses tax liability using available data
    • Impact: Can lead to GSTIN suspension or cancellation.

    5. GST Audit Notice – Section 65 & Section 66

    • Purpose: Issued for conducting a departmental audit or special audit to verify tax records, ITC claims, and compliance.
    • Trigger: Random selection, high-value transactions, or mismatch alerts in GSTN analytics.

    6. DRC Notices (DRC-01 to DRC-10)

    • Purpose: Related to demand and recovery proceedings under GST law.


    Types:


    • DRC-01: Show Cause Notice for tax demand.
    • DRC-03: Voluntary payment form.
    • DRC-07: Summary of tax demand order.

    7. Show Cause Notice (SCN)

    • Purpose: Issued before imposing any penalty, asking the taxpayer to explain why legal action should not be taken.
    • Importance: Strong, evidence-backed reply is critical.

Turnaround Time for GST Notice Reply – Mequintrax

  • When it comes to GST Notices, speed matters. The Goods and Services Tax Department sets strict deadlines for reply submission, usually ranging from 7 days to 30 days, depending on the notice type. Missing these deadlines can result in penalties, interest, GSTIN suspension, or prosecution.

    At Mequintrax Digital Services, we specialize in fast, accurate, and legally sound GST notice replies to ensure you never miss a compliance deadline. Our turnaround time is carefully designed for each GST notice type:



    GST Notice Type

    Section Form

    Standard GST Department Deadline

    Scrutiny Notice

    Section 61

    15 Days

    Tax Shortfall (No Fraud)

    Section 73

    30 Days

    Tax Shortfall (Fraud)

    Section 74

    30 Days

    Best Judgment Assessment

    Section 62

    7 Days

    GST Audit Notice

    Section 65/66

    As per notice

    DRC Demand Notice

    DRC-01 to DRC-10

    7–15 Days

    Show Cause Notice (SCN)

    Various

    7–15 Days

Reasons for Getting a GST Notice in India

  • A GST Notice is issued by the Goods and Services Tax Department when they identify errors, mismatches, or non-compliance in a taxpayer’s filings, payments, or business records. Understanding the common reasons helps prevent penalties, interest, and legal action.


    Top Reasons You May Receive a GST Notice


    • Mismatch in GST Returns
    • Non-Filing or Delayed Filing of Returns
    • Under-Reporting of Sales or Turnover
    • Suspicion of Tax Evasion or Fraud
    • Incorrect HSN/SAC Code or GST Rate
    • Registration Irregularities

    How Mequintrax Solves Your GST Notice Problems Instantly

    At Mequintrax Digital Services, we understand that GST Notices can be stressful and time-sensitive. That’s why our instant GST Notice resolution process is designed for speed, accuracy, and compliance:


    Why Choose Mequintrax?


    • 48-hour reply turnaround for most GST notices.
    • Nationwide service with 100% online documentation & filing.
    • Transparent, government-verified, and trusted by businesses across India.

Top 6 Reasons to File Your GST Notice with a Trusted Tax Filing Expert

Fastest GST Notice Response in India

Mequintrax delivers legally sound GST notice replies within 48 hours, ensuring you meet strict deadlines, avoid penalties, and maintain full compliance with the GST Department across all Indian states.

Expert GST Compliance Professionals

Our GST experts specialize in handling scrutiny notices, show cause notices, and demand notices with accuracy, ensuring every response is backed by relevant CGST Act sections and complete supporting documentation.

100% Online, Hassle-Free Process

From uploading your GST notice to receiving a drafted reply, our secure digital platform ensures a smooth, paperless, and convenient compliance experience without unnecessary visits or delays.

Nationwide Coverage & Recognition

Mequintrax serves clients across India, offering uniform, transparent, and government-verified GST compliance services, trusted by businesses of all sizes from small startups to large corporations.

Proven Record of GST Notice Success

With a high success rate in resolving GST notices, Mequintrax ensures penalty waivers, smooth compliance clearance, and prevention of GSTIN suspension, safeguarding your business reputation and operations.

Transparent Pricing with No Hidden Charges

We offer competitive, upfront pricing for GST notice replies, ensuring cost transparency while delivering premium-quality compliance services without unexpected fees or last-minute expenses.

? What is a GST Notice in India?

? Why did I receive a GST Notice?

? What are the types of GST Notices?

? What is the time limit to reply to a GST Notice?

? What happens if I ignore a GST Notice?

? Can I reply to a GST Notice online?

? How much penalty can I face for a GST Notice?

? Can Mequintrax help with GST Audit and Show Cause Notices?

? How can I avoid getting a GST Notice in the future?

? Why choose Mequintrax for GST Notice resolution?


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