GST Procedures & Notices

How to Respond to an ASMT-10 Notice

Discrepancy notices (ASMT-10) are auto-triggered by the GSTN portal logic. Here is exactly how to manage and dissolve them:

1. Step 1: Deep Analysis - Identify the delta. The officer usually compares Outward Liability (GSTR-1 vs 3B vs E-Way Bill) or ITC claimed (GSTR-3B vs 2A/2B).
2. Step 2: Collect Empirical Evidence - Gather purchase invoices, bank payment proofs to suppliers (Rule 37 compliance), and freight records. The burden of proof is heavily on the taxpayer.
3. Step 3: Pay Shortfalls (If Applicable) - If the notice highlights a legitimate error, pay the differential tax + Section 50 Interest via form DRC-03 immediately to preclude penalty invocation under Section 73/74.
4. Step 4: Draft the ASMT-11 Reply - Respond formally within 30 days. Attach the DRC-03 ARN (if paid) and provide a point-by-point reconciliation indicating why the remaining discrepancies are legally valid (e.g. ITC deferred from previous years).
5. Step 5: Follow Up for ASMT-12 - Once the officer accepts the ASMT-11, they will issue an ASMT-12 dropping the proceedings. If rejected, they will issue a Show Cause Notice under DRC-01.