GST · ASMT-10

Scrutiny notice: discrepancies in your GST returns

high urgency
Issued by
State Tax Officer, Ward 12, Pune
Reference
ZD2710260012345
Date of issue
14-10-2026
Period
FY 2024-25
Taxpayer
Sharma Traders (sample)
GSTIN / PAN
27XXXXXXXXXXX1Z5
Reply by
13-11-2026
The notice asks for a reply within 30 days of 14-10-2026 (Rule 99(2)).
Amount involved
₹1,84,600 tax (₹92,300 CGST + ₹92,300 SGST) on two discrepancies; interest not yet calculated

What this notice means

The GST officer compared your returns for FY 2024-25 and found two gaps. This is not a demand yet. It's a chance to explain or fix the difference before formal proceedings start. If you reply well and on time, the case can be closed.

Why you most likely got it

  • Sales of ₹6,40,000 shown in GSTR-1 were not matched by tax paid in GSTR-3B for March 2025.
  • You claimed ₹71,400 more input tax credit in GSTR-3B than appears in your GSTR-2B.

What the department wants

  • An explanation for each of the two differences, with supporting documents
  • Payment of any tax you agree is short, with interest, through DRC-03

If you ignore it

The officer can issue a show cause notice (DRC-01) for the full amount plus interest and penalty, or order an audit of your business.

Your action plan

  1. Reconcile March 2025
    Match each GSTR-1 invoice for March 2025 against GSTR-3B. Check whether the tax was paid in a later month's GSTR-3B.
  2. Check the ITC gap
    Find the supplier invoices behind the ₹71,400 difference. See if those suppliers filed GSTR-1 late, or if the credit belongs to another period.
  3. Pay what you agree with
    For any amount genuinely short, pay tax plus 18% interest via DRC-03 (cause: 'Scrutiny') and note the ARN.
  4. File ASMT-11
    Submit the reply below with your reconciliation and documents before 13-11-2026, then download the acknowledgement.

Documents to keep ready

  • GSTR-1 and GSTR-3B for April 2024 – March 2025: To show where the March 2025 liability was paid
  • GSTR-2B for the year and purchase register: To explain the ITC difference
  • Supplier invoices for the disputed credit: Proof that the purchases were genuine
  • DRC-03 challan (if you pay anything): Proof of payment to close that part

Where to file your reply

GST portal → Services → User Services → View Additional Notices/Orders → open the case → Replies → ASMT-11

Draft reply

Replace every [bracketed placeholder] with your details before filing.

Reply to notice in Form GST ASMT-10, Ref. No. ZD2710260012345 dated 14-10-2026, for FY 2024-25 To, The State Tax Officer, Ward 12, Pune Subject: Reply to notice in Form GST ASMT-10, Ref. No. ZD2710260012345 dated 14-10-2026 — FY 2024-25 GSTIN: [Your GSTIN] Legal name: Sharma Traders Respected Sir/Madam, We refer to the above notice pointing out discrepancies in our returns for FY 2024-25. Our point-wise reply is as follows: 1. Difference between GSTR-1 and GSTR-3B for March 2025 (₹6,40,000 taxable value) The invoices in question were reported in GSTR-1 for March 2025. The corresponding tax was discharged in GSTR-3B for [month/year], as shown in the reconciliation at Annexure A. [OR: We accept the short payment and have paid tax of ₹[amount] with interest of ₹[amount] via DRC-03 ARN [number] dated [date], enclosed as Annexure B.] 2. Excess ITC of ₹71,400 compared with GSTR-2B The difference relates to invoices from [supplier name(s)], who filed their GSTR-1 after the due date. These invoices appear in our GSTR-2B for [month/year]. Copies of invoices and proof of payment to the suppliers are at Annexure C. [OR: We have reversed/paid ₹[amount] via DRC-03 ARN [number].] We request you to accept this explanation and drop the proceedings under Rule 99(3) by issuing Form GST ASMT-12. If any further clarification is required, we request an opportunity of personal hearing. Annexures: A. Reconciliation of GSTR-1 and GSTR-3B for FY 2024-25 B. DRC-03 challan (if applicable) C. Supplier invoices and payment proof Yours faithfully, For Sharma Traders [Authorised signatory name] [Designation] Date: [date]

Before you file

  • Confirm the month in which the March 2025 tax was actually paid
  • Check each supplier's GSTR-1 filing date in GSTR-2A
  • Recalculate interest at 18% p.a. up to the payment date if paying via DRC-03

Get a CA involved if…

You can't reconcile the March 2025 difference, the supplier invoices are missing, or the officer has hinted at fraud or suppression.

This analysis was generated by AI from the document provided. It isn't legal or tax advice. Check it against your records before acting.