Scrutiny and the first letter
Most GST disputes begin with ASMT-10, a scrutiny notice pointing at a difference between GSTR-1, GSTR-3B and GSTR-2B. Answering it properly in ASMT-11, with a reconciliation attached, usually ends the matter there.
Demand notices #
DRC-01A is an intimation before a formal demand and is the cheapest point to settle, because interest is lower and penalty may be avoided. DRC-01 is the show-cause notice itself, issued under section 73 for ordinary cases and section 74 where suppression is alleged, which carries a far higher penalty and a longer limitation period.
Audits and inspections #
ADT-01 opens a departmental audit; the officer will ask for books, invoices, e-way bills and the trial balance. Keeping a monthly reconciliation file makes an audit an administrative exercise instead of a three-week reconstruction.
What you will need
- The notice with its reference number and the section quoted
- Period-wise reconciliation of GSTR-1, 3B and 2B
- Copies of the invoices in question
- Proof of payment for any tax already discharged
- Ledger extracts from the GST portal
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