Short answer: an ASMT-10 is a scrutiny notice, not a demand. A GST officer has compared your returns with other data, found figures that don’t match, and is asking you to explain. You have 30 days from the date it is served (or longer, if the officer allows) to reply in Form ASMT-11 on the GST portal. You can either explain the difference with documents, or accept it and pay the tax and interest through Form DRC-03. If the officer accepts your reply, the case closes with an ASMT-12 order. If you don’t reply, or the reply doesn’t convince the officer, the next step is a show cause notice, and that is where penalties start. This guide explains what the notice is really asking, the mismatches it usually covers, and how to reply, with a reply format you can adapt.
This is general information, not legal or tax advice. A scrutiny notice with a large amount, or one you plan to contest, should be handled with your CA or GST practitioner.
Section 61 of the CGST Act allows the officer to scrutinise your returns, and Rule 99 of the CGST Rules sets out the procedure. If discrepancies are found, the officer informs you in Form GST ASMT-10, quantifying the tax, interest and other amounts involved as far as possible, and asks for an explanation within a period not exceeding 30 days from the date the notice is served.
For central tax officers, CBIC’s standard operating procedure says returns are picked for scrutiny centrally, based on risk parameters, and that officers should normally not ask you for documents or records before issuing ASMT-10. Scrutiny is meant to involve minimal contact with the taxpayer. So an ASMT-10 usually means a data mismatch was flagged, not that someone has accused you of evasion. Taken seriously, it is the cheapest point at which to settle a GST issue.
| Form | What it is | How serious |
| DRC-01B | Automatic system intimation that tax in GSTR-1 is higher than the tax paid in GSTR-3B. Reply or pay within 7 days, or your next GSTR-1 can be blocked. | Low, but urgent |
| DRC-01C | Automatic system intimation that ITC claimed in GSTR-3B is higher than ITC available in GSTR-2B. Same 7-day reply and blocking. | Low, but urgent |
| ASMT-10 | Scrutiny notice from an officer listing discrepancies for a period, usually a full financial year. Reply in ASMT-11 within 30 days. | Medium: the last stage before a show cause notice |
| DRC-01A | Intimation of tax the officer has ascertained, before a show cause notice. | High |
| DRC-01 | Show cause notice under Section 73, 74 or 74A demanding tax, interest and penalty. | High: formal proceedings |
| REG-03 | Query on a new GST registration application. Unrelated to returns. | Reply within 7 working days |
If what you received is a registration query (REG-03), see our guide on premises documents for GST registration instead.
CBIC’s scrutiny instruction gives officers an indicative (not complete) list of parameters. Almost every ASMT-10 a small business receives comes from one of these:
| Discrepancy | Common innocent reason | What to attach |
| Tax in GSTR-1 higher than tax paid in GSTR-3B | Invoice reported in GSTR-1 of one month but paid in the 3B of the next; advances adjusted; amendments in later months | Month-wise reconciliation of GSTR-1 vs GSTR-3B for the year, with the later 3B showing payment |
| ITC in GSTR-3B higher than GSTR-2A/2B | Supplier filed GSTR-1 late; ITC taken in a different month; import ITC not reflected; credit notes | Supplier-wise ITC reconciliation, invoices, proof of payment to supplier, supplier’s later GSTR-1 filing |
| ITC from suppliers whose registration was cancelled, or who didn’t file GSTR-3B | Invoice dated before the cancellation date; genuine purchase where supplier defaulted later | Invoice, e-way bill, transport proof, bank payment, supplier’s registration status on the invoice date |
| Reverse charge tax not paid in cash, or RCM ITC higher than RCM tax paid | RCM on rent, legal or transport services missed, or ITC taken before the tax was paid | RCM liability working, challans showing cash payment |
| E-way bill value higher than turnover in returns | Cancelled e-way bills, stock transfers, goods returned, e-way bills raised for job work | E-way bill register with cancelled and non-sale entries marked |
| TDS/TCS credit higher than declared turnover | E-commerce sales or government receipts reported in a different period | GSTR-2A TDS/TCS table matched to sales by period |
| ITC claimed after the Section 16(4) time limit | Usually a genuine late claim, which is hard to defend | Check with your CA before replying |
| ITC reversals (Rules 42/43), interest or late fee not paid | Exempt sales or late filing where interest was never calculated | Reversal working; proof of interest paid |
One rule that changes the numbers a lot: interest on wrongly availed ITC is payable only to the extent the ITC was actually used to pay tax (Section 50(3)). If excess ITC just sat unused in your electronic credit ledger, reversing it may cost you no interest. Point this out in your reply where it applies.
What you should not do is ignore it. If there is no satisfactory reply, or you accept a discrepancy and don’t pay, the officer can move to a show cause notice under Section 73 or 74 (or Section 74A, for FY 2024-25 onwards) or refer the case for audit or investigation. CBIC’s instruction asks central officers to start that action within 15 days after the reply period lapses without a reply.
If you need more time, ask before the 30 days run out. Write to the officer (reply on the portal or by letter quoting the notice reference) stating why, for example that reconciliation for a full year needs supplier data, and asking for a specific extension. Rule 99 allows the officer to give further time. If the deadline has already passed, reply anyway, as soon as possible: a late reply is far better than none.
Keep the reply factual, point by point, and in the same order as the discrepancies in the notice. Here is a format you can adapt:
To, The Proper Officer, [Range / Ward, Division, Commissionerate] Subject: Reply in Form GST ASMT-11 to notice in Form GST ASMT-10 Ref: Notice No. [reference number] dated [date] for FY [20XX-XX] GSTIN: [your GSTIN] Legal name: [as per registration] Sir/Madam, With reference to the above notice, we submit our explanation for each discrepancy pointed out: 1. Discrepancy: [copy the point exactly as in the notice, with amount] Explanation: [e.g. Invoices worth Rs X reported in GSTR-1 for March 20XX were included in GSTR-3B for April 20XX, where tax of Rs Y was paid. Month-wise reconciliation is at Annexure A.] Status: Not accepted / Accepted and paid / Partly accepted 2. Discrepancy: [...] Explanation: [...] Status: Accepted. Tax of Rs [ ] and interest of Rs [ ] paid vide DRC-03 ARN [ ] dated [ ]. Summary: Amount pointed out in notice: Rs [ ] Amount explained: Rs [ ] Amount accepted and paid: Rs [ ] We request that the explanation be accepted and the proceedings be concluded by issue of Form GST ASMT-12. If any further information is needed, we request an opportunity to furnish it. Annexures: A. GSTR-1 vs GSTR-3B month-wise reconciliation B. ITC reconciliation (GSTR-3B vs GSTR-2B), supplier-wise C. Copies of invoices / DRC-03 / challans Place: Date: [Name], [Proprietor / Partner / Director / Authorised Signatory]
Most scrutiny notices are a reconciliation you didn’t do during the year, done later under deadline. Matching GSTR-1 against GSTR-3B every month, and GSTR-2B against your purchase register before you claim ITC, removes nearly all the triggers in the table above. Good accounting software does both automatically. Our Tally vs Zoho Books comparison covers how each handles GST reconciliation, and if you are just starting out, our guide to setting up a proprietorship explains which registrations come with return-filing duties.
What is the time limit to reply to ASMT-10?
The notice sets the period, which cannot exceed 30 days from the date of service unless the officer allows further time. Request an extension before the deadline if you need one.
Is there a penalty at the ASMT-10 stage?
The notice itself does not levy a penalty. If you accept a discrepancy, you pay the tax and interest through DRC-03. Penalties come in if the matter goes to a show cause notice under Section 73, 74 or 74A.
What happens after I file ASMT-11?
If the officer accepts the explanation, an order in Form ASMT-12 closes the scrutiny; for central tax officers, CBIC’s instruction says this should be issued within 30 days of the reply. If not, the officer may issue a show cause notice or refer the case for audit or investigation.
Can I reply to ASMT-10 without a CA?
Yes, the portal lets the taxpayer file ASMT-11 directly. But the reply is only as good as the reconciliation behind it, so for anything beyond a simple timing difference, have your accountant prepare the working.
I received an ASMT-10 by email. Is it genuine?
Log in to the GST portal and check under View Additional Notices/Orders. A genuine notice will be there with a reference number. Never pay through a link in an email or message; payments go only through the portal.
What is the difference between ASMT-10 and DRC-01?
ASMT-10 asks you to explain discrepancies in your returns. DRC-01 is a show cause notice that formally demands tax, interest and penalty. Replying well to ASMT-10 is how you avoid getting a DRC-01.
Sources: Central Goods and Services Tax Act, 2017, Sections 50, 61, 73, 74 and 74A; CGST Rules, 2017, Rules 88C, 88D and 99; CBIC Instruction No. 02/2022-GST dated 22 March 2022 (SOP for scrutiny of returns, with Annexure B parameters) and Instruction No. 02/2023-GST dated 26 May 2023 (online scrutiny from FY 2019-20); GST portal user manual for filing Form GST ASMT-11. Updated November 2026.
