GST & Income Tax Notice Reply
Income tax demand after 143(1) - rectification u/s 154 or appeal
Read the computation, find why tax was added, and get a Section 154 rectification request or the grounds for an appeal to CIT(Appeals).
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Deadline
30 days from the date you were informed, or a longer period if the officer allows it. Enter the date to see your last day.
- What it means
- The officer has found discrepancies while scrutinising your returns (for example GSTR-1 vs GSTR-3B, or ITC in 3B vs GSTR-2A/2B) and wants an explanation. It is an inquiry, not yet a demand.
- Law
- Section 61 CGST Act, Rule 99 CGST Rules
- How you reply
- Form ASMT-11 on the GST portal (you can also pay any admitted amount through DRC-03 and mention it).
- If you don't reply in time
- If the explanation is not filed or not accepted, the officer may start audit (Sec 65/66), inspection (Sec 67) or a demand under Sec 73/74 (up to FY 2023-24) or 74A (FY 2024-25 onwards). If accepted, you get ASMT-12 and the matter closes.
- Keep ready
- GSTR-1, GSTR-3B and GSTR-2A/2B for the period
- Reconciliation of the difference, line by line
- Invoices, debit/credit notes and e-way bills for the items in question
- Bank proof of payment to suppliers (for ITC points)
- DRC-03 challan if you paid any part
- Do you need a CA?
- Recommended if the difference is large, if you cannot reconcile it, or if the notice hints at fake invoices or suppression.
Always go by the date and instructions printed on your notice. Income tax entries refer to the Income-tax Act 1961, which still governs tax years that began before 1 April 2026.
5 rules for a reply that gets the notice dropped
Reconcile before you write
Most GST notices are a number mismatch. Put GSTR-1, GSTR-3B and GSTR-2B side by side month by month and find exactly where the difference sits. The draft gives you the table to fill.
Answer every paragraph
Officers drop proceedings when each point in the notice gets a numbered answer with a document behind it. Unanswered points are usually confirmed.
Pay what you agree with
If part of the difference is genuine, pay it with interest through DRC-03 (GST) and say so in the reply. It narrows the dispute and can reduce penalty.
Ask for a personal hearing
For a GST show cause notice, request a hearing in the reply itself. Section 75(4) requires one before an adverse order.
File on the portal and keep the acknowledgement
Upload the reply in the right form (ASMT-11, DRC-06, Part B, e-Proceedings) - an email alone is not a reply. Save the ARN / acknowledgement PDF.
Notisaar builds all five into every draft: the reconciliation table, numbered answers, the DRC-03 option, the hearing request and the filing steps for your notice.
See a real result
A real result from the example below, made with this tool. Shortened.
Input: Notice type: GST DRC-01C (ITC 3B vs 2B mismatch) · Paste the notice (all paragraphs, tables and amounts): FORM GST DRC-01C [See rule 88D(1)] Reference No: ZD2704250123456 Date: 08/05/2025. GSTIN: · What actually happened (your side, with figures): Two suppliers (Mehta Steel, GSTIN 27AAAPM1111K1Z2 and Om Packaging, 27BBBPO2222L1Z3) uploa · What do you want to do?: Pay part via DRC-03, contest the
GST DRC-01C (Rule 88D): ITC 3B बनाम 2B अंतर, मार्च 2025
1. आपका नोटिस एक नज़र में
| विवरण | जानकारी |
|---|---|
| नोटिस / फॉर्म | FORM GST DRC-01C, Ref. No. ZD2704250123456, दिनांक 08/05/2025 |
| कानून | Section 16(2)(aa) और Section 41 (CGST Act), Rule 36(4) और Rule 88D(1) (CGST Rules) |
| अवधि | मार्च 2025 |
| दांव पर राशि | अतिरिक्त ITC CGST ₹92,250 + SGST ₹92,250 = ₹1,84,500। ब्याज: नोटिस में राशि नहीं दी गई, DRC-03 भुगतान पर Section 50 के अनुसार लगेगा। पेनल्टी: नोटिस में उल्लेख नहीं |
| जवाब कहाँ | DRC-01C का Part B, GST पोर्टल पर ऑनलाइन। भुगतान DRC-03 से |
| अंतिम तिथि | नोटिस के अनुसार 7 दिन, जो 08/05/2025 की सूचना से गिने जाएँगे। यह समय निकल चुका हो तो तुरंत जवाब दें |
| जोखिम स्तर | मध्यम। अंतर पूरी तरह समझाया जा सकता है, लेकिन ITC 2B में आने से पहले ले लिया गया था। जवाब न देने पर अगला GSTR-1/IFF ब्लॉक हो जाएगा (Rule 59(6)) |
2. इस नोटिस का मतलब
- विभाग का सिस्टम कह रहा है कि आपने मार्च 2025 के GSTR-3B में ₹2,96,500 ITC लिया। लेकिन आपके मार्च के GSTR-2B में केवल ₹1,12,000 ITC दिख रहा है।
- यह ऑटोमेटिक सिस्टम नोटिस है। कोई अधिकारी अभी आप पर धोखाधड़ी का आरोप नहीं लगा रहा।
- ऐसा अक्सर तब होता है जब सप्लायर अपना GSTR-1 देर से भरता है और इनवॉइस अगले महीने के 2B में आ जाता है।
- आपके मामले में ₹1,66,500 इसी समय-अंतर (timing difference) का मामला है। बाकी ₹18,000 कार का ITC है, जो Section 17(5) के तहत ब्लॉक है और जिसे आप सही तरीके से वापस कर रहे हैं।
- यह नोटिस रूटीन है। लेकिन 7 दिन में Part B में जवाब न देने पर GSTR-1 फाइलिंग रुक जाएगी और आगे DRC-01 (demand notice) आ सकता है।
3. आपके विकल्प
- कार वाला ₹18,000 मान लेना (आपका चुना विकल्प):
- CGST ₹9,000 + SGST ₹9,000, साथ में Section 50(3) के तहत ब्याज, DRC-03 से जमा करें।
- इससे यह हिस्सा यहीं खत्म हो जाता है।
- ₹1,66,500 पर विरोध (contest):
- यह तर्क मज़बूत है कि इनवॉइस अप्रैल 2025 के 2B में आ गए हैं, माल मिल चुका है और भुगतान बैंक से हुआ है।
- कमज़ोरी: Rule 36(4) और Section 16(2)(aa) के अनुसार ITC उसी महीने लिया जा सकता है जिसके 2B में इनवॉइस दिखे। आपने मार्च में पहले ही ले लिया।
- इसलिए अधिकारी मार्च से अप्रैल तक की अवधि का ब्याज माँग सकता है। Section 50(3) के अनुसार ब्याज तभी लगता है जब गलत ITC "utilise" हुआ हो, यानी इलेक्ट्रॉनिक क्रेडिट लेजर का बैलेंस उस राशि से नीचे गया हो।
- सबसे सुरक्षित तरीका:
- ₹18,000 ब्याज सहित भरें।
- ₹1,66,500 के लिए स्पष्टीकरण दें।
- साफ़ लिखें कि यह ITC अप्रैल 2025 के 3B में दोबारा नहीं लिया गया है। अगर अप्रैल 3B में दोबारा लिया है, तो वह double claim है और उसे तुरंत reverse करना होगा।
- पूरा ₹1,84,500 भर देना: यह ज़रूरी नहीं है। इससे बेवजह कैश फंसेगा।
4. जवाब का ड्राफ्ट (Draft Reply)
नोट: विभाग में औपचारिक जवाब आमतौर पर अंग्रेज़ी में दिया जाता है, इसलिए ड्राफ्ट अंग्रेज़ी में है।
From: Shree Ganesh Traders GSTIN: 27ABCDE1234F1Z5 Shop 4, Market Yard, Pune 411037
To: The Proper Officer, [Jurisdictional Range / Ward – as shown on portal], State Tax / Central Tax, Maharashtra
Date: [date]
Ref: Intimation in FORM GST DRC-01C, Reference No. ZD2704250123456 dated 08/05/2025
Subject: Reply under Rule 88D(1) of the CGST/MGST Rules, 2017 to FORM GST DRC-01C for the tax period March 2025: difference between ITC availed in GSTR-3B and ITC available in GSTR-2B
Respected Sir/Madam,
-
We refer to the above intimation. It states that ITC of CGST ₹92,250 and SGST ₹92,250 (total ₹1,84,500) availed in GSTR-3B for March 2025 exceeds the ITC available in GSTR-2B for that period. This reply is filed within the time allowed. It is without prejudice to our other rights and remedies under law.
-
Summary of the difference
| Component | CGST (₹) | SGST (₹) | Total (₹) |
|---|---|---|---|
| ITC availed in GSTR-3B (March 2025) | 1,48,250 | 1,48,250 | 2,96,500 |
| ITC in GSTR-2B (March 2025) | 56,000 | 56,000 | 1,12,000 |
| Difference as per intimation | 92,250 | 92,250 | 1,84,500 |
| (a) Supplier invoices reflected in GSTR-2B of April 2025 | 83,250 | 83,250 | 1,66,500 |
| (b) ITC on motor car, blocked u/s 17(5), now paid via DRC-03 | 9,000 | 9,000 | 18,000 |
| Unexplained balance | 0 | 0 | 0 |
-
Point (a): ₹1,66,500, supplier invoices for March 2025 uploaded in April 2025 GSTR-1
3.1 The following inward supplies were received in March 2025:
- M/s Mehta Steel (GSTIN 27AAAPM1111K1Z2): 3 invoices [Invoice nos. and dates], ITC ₹1,44,000 (CGST ₹72,000 + SGST ₹72,000).
- M/s Om Packaging (GSTIN 27BBBPO2222L1Z3): 1 invoice [Invoice no. and date], ITC ₹22,500 (CGST ₹11,250 + SGST ₹11,250).
3.2 The goods were physically received in March 2025 [GRN / stock register / e-way bill references]. Full payment, including tax, was made to the suppliers by bank transfer [UTR nos. and dates]. The conditions of Section 16(2)(a), (b), (c) and (d) of the CGST Act are therefore satisfied: we hold tax invoices, the goods were received, the suppliers have paid the tax [to be confirmed from supplier GSTR-3B status], and we have filed our return.
3.3 The suppliers furnished these invoices in their GSTR-1 for April 2025. The invoices accordingly appear in our GSTR-2B for April 2025. The condition in Section 16(2)(aa) read with Rule 36(4) is thus now satisfied.
3.4 The difference is only a timing difference caused by the suppliers' late reporting. It is not ineligible ITC. The same ITC has not been availed again in GSTR-3B for April 2025 or any later period, so there is no double availment [confirm, and attach the April 2025 GSTR-3B Table 4].
3.5 Throughout the period from filing the March 2025 GSTR-3B until the invoices appeared in the April 2025 GSTR-2B, the balance in our electronic credit ledger was [not less than ₹ amount / explain]. The ITC was therefore not utilised, and no interest is payable under Section 50(3). [Keep this point only if the ledger supports it; otherwise state that interest for this period will be paid as determined.]
3.6 Documents: Annexures B to E.
-
Point (b): ₹18,000, ITC on motor vehicle
4.1 ITC of ₹18,000 (CGST ₹9,000 + SGST ₹9,000) was availed on a motor car [Invoice no., date, supplier] used by the proprietor. This is blocked under Section 17(5)(a) of the CGST Act.
4.2 We have paid this amount with interest under Section 50 through FORM GST DRC-03, ARN [ARN no.] dated [date]: tax ₹18,000, interest ₹[amount]. A copy is at Annexure F.
-
Prayer
In view of the above, we request that you kindly:
- accept this explanation and the DRC-03 payment;
- treat the intimation as complied with under Rule 88D;
- drop further proceedings for the difference of ₹1,66,500, without any demand, interest or penalty;
- not restrict our GSTR-1/IFF filing under Rule 59(6).
If any further clarification is needed, we request an opportunity to be heard before any adverse action. We reserve the right to make additional submissions.
Yours faithfully, For Shree Ganesh Traders
[Signature] [Name of Proprietor / Authorised Signatory] Date: [date] | Place: Pune
Part B टेक्स्ट बॉक्स के लिए छोटा संस्करण (1,500 अक्षरों से कम)
Difference Rs 1,84,500 (CGST 92,250 + SGST 92,250) is fully explained. (1) Rs 1,66,500 (CGST/SGST 83,250 each): March 2025 invoices of Mehta Steel, 27AAAPM1111K1Z2 (3 inv, ITC 1,44,000) and Om Packaging, 27BBBPO2222L1Z3 (1 inv, ITC 22,500) were uploaded by the suppliers in April 2025 GSTR-1 and now appear in our April 2025 GSTR-2B. Goods were received in March 2025 and paid by bank transfer. This is a timing difference only. The ITC has not been claimed again in April 2025 GSTR-3B, and the Sec 16(2) conditions are met. (2) Rs 18,000 (CGST/SGST 9,000 each): ITC on a motor car, blocked u/s 17(5)(a), paid with interest via DRC-03 ARN [ ] dated [ ]. Request that the intimation be closed and the GSTR-1 restriction not be applied. Detailed reply and documents are uploaded.
5. मिलान तालिका (Reconciliation Table)
| सप्लायर | GSTIN | इनवॉइस | माल प्राप्ति | भुगतान (UTR) | ITC (₹) | मार्च 2B में? | अप्रैल 2B में? | अप्रैल 3B में दोबारा? | कारण | Annexure |
|---|---|---|---|---|---|---|---|---|---|---|
| Mehta Steel | 27AAAPM1111K1Z2 | [ ] (3) | मार्च 2025 | [ ] | 1,44,000 | नहीं | हाँ | [नहीं – जाँचें] | सप्लायर ने GSTR-1 देर से भरा | B, C, D, E |
| Om Packaging | 27BBBPO2222L1Z3 | [ ] (1) | मार्च 2025 | [ ] | 22,500 | नहीं | हाँ | [नहीं – जाँचें] | सप्लायर ने GSTR-1 देर से भरा | B, C, D, E |
| कार | [ ] | [ ] | – | – | 18,000 | – | – | – | Sec 17(5) ब्लॉक, DRC-03 से भुगतान | F |
| कुल | 1,84,500 |
परिणाम: समझाया गया अंतर ₹1,84,500 है और नोटिस में बताया गया अंतर भी ₹1,84,500 है। शेष अंतर ₹0।
6. संलग्न दस्तावेज़ (Annexures)
- Annexure A: DRC-01C नोटिस की कॉपी (Ref. ZD2704250123456)
- Annexure B: मार्च 2025 और अप्रैल 2025 का GSTR-2B (संबंधित इनवॉइस हाइलाइट करके)
- Annexure C: Mehta Steel के 3 और Om Packaging के 1 इनवॉइस की कॉपी
- Annexure D: माल प्राप्ति का प्रमाण (e-way bill / GRN / स्टॉक रजिस्टर) और बैंक स्टेटमेंट (UTR सहित)
- Annexure E: अप्रैल 2025 GSTR-3B (Table 4) और इलेक्ट्रॉनिक क्रेडिट लेजर (मार्च–अप्रैल 2025)
- Annexure F: DRC-03 की चालान/ARN कॉपी (₹18,000 + ब्याज)
7. फाइल कैसे करें
- पहले भुगतान करें: Services > Ledgers > Payment towards demand (या Services > User Services > My Applications > Intimation of Voluntary Payment – DRC-03)।
- Cause of payment: "Others" या "Intimation under Rule 88D"
- Period: March 2025
- राशि: CGST ₹9,000 + SGST ₹9,000 + ब्याज
- ARN नोट करें।
- नोटिस खोलें: Services > User Services > View Additional Notices/Orders > DRC-01C वाले नोटिस पर Part B / Reply लिंक पर क्लिक करें। ईमेल में आया लिंक भी इस्तेमाल कर सकते हैं।
- Part B भरें: Part B में दोनों विकल्प चुनें:
- "Paid through DRC-03" (ARN डालें)
- "Explanation" (ऊपर का छोटा संस्करण पेस्ट करें)
- दस्तावेज़ अपलोड करें: पूरा जवाब और Annexures एक PDF में (आकार सीमा देखें) अपलोड करें।
- सबमिट करें: DSC/EVC से सबमिट करें।
- रिकॉर्ड रखें: Acknowledgement / ARN डाउनलोड करके सुरक्षित रखें। इसके बाद जाँच लें कि GSTR-1 फाइलिंग खुल गई है।
8. फाइल करने से पहले जाँचें
- Double claim: सबसे ज़रूरी बात यह जाँचें कि ₹1,66,500 का ITC अप्रैल 2025 के 3B में दोबारा तो नहीं लिया। अगर लिया है, तो उसे reverse करें और जवाब में यह लिखें।
- ITC पहले लेना: ITC 2B में आने से पहले लिया गया, जो Rule 36(4) के अनुसार सही नहीं था। अधिकारी इसके लिए मार्च–अप्रैल की अवधि का ब्याज माँग सकता है।
- पैरा 3.5 तभी रखें जब क्रेडिट लेजर का बैलेंस उस राशि से नीचे न गया हो।
- अन्यथा कुछ दिनों का ब्याज DRC-03 से भर देना सुरक्षित है।
- सप्लायर का टैक्स भुगतान: जाँचें कि दोनों सप्लायरों ने अप्रैल 2025 का GSTR-3B भरकर टैक्स जमा किया है (Section 16(2)(c))।
- कार पर ब्याज: इसे Section 50(3) के अनुसार 18% प्रति वर्ष, 3B फाइलिंग की तारीख से भुगतान तक, सही गणना करके भरें।
- अधूरी जानकारी: ये placeholders अभी खाली हैं, फाइल करने से पहले भरें:
- इनवॉइस नंबर और तारीख
- UTR नंबर
- DRC-03 ARN और ब्याज राशि
- अधिकारी का पद
- हस्ताक्षरकर्ता का नाम
- डेडलाइन: 7 दिन की समय-सीमा 08/05/2025 की सूचना से शुरू हुई थी। अगर यह निकल चुकी है, तो बिना देरी के जवाब दें।
- पेशेवर सलाह: राशि ₹5 लाख से कम है और मामला सीधा timing difference का है, इसलिए आप खुद फाइल कर सकते हैं। लेकिन अगर बाद में DRC-01 (demand notice) आए, समय-सीमा निकल चुकी हो, या अप्रैल 3B में double claim निकले, तो CA या GST advocate से समीक्षा ज़रूर कराएँ।
Who it's for
- Shop owners, traders and small manufacturers who got an ASMT-10, DRC-01B or DRC-01C and don't want to pay ₹3,000+ for a mismatch reply
- Freelancers and salaried people with a 143(1)(a) adjustment or 139(9) defective return notice
- Accountants and tax practitioners who want a solid first draft in minutes and then add their own judgement
- CAs handling many routine notices for clients, who need consistent, well-structured drafts
Why people use Notisaar
A GST or income tax notice comes with a short deadline - 7 days for DRC-01B and DRC-01C, 30 days for ASMT-10 and 143(1)(a) - and a reply that misses a paragraph or quotes the wrong form can turn a simple mismatch into a demand order. Most notices are not fraud cases. They are timing differences, a supplier who filed late, a TDS entry in AIS, a typo in GSTR-1. What you need is a reply that answers every point in the notice, shows the numbers in a reconciliation, cites the right section and asks for the proceedings to be dropped. Notisaar writes that reply from the notice you paste, for ₹99, and tells you plainly when the case is serious enough for a CA.
- ✓ A formal, point-wise reply that answers every paragraph of your notice, ready to paste into ASMT-11, DRC-06, DRC-01B/01C Part B or the income tax e-Proceedings box
- ✓ Plain-language summary first: what the notice says, the amount at stake, the reply form and your last date
- ✓ Reconciliation table (GSTR-1 vs 3B vs 2B, or AIS/26AS vs ITR) laid out for your figures, so the officer can see where the difference comes from
- ✓ Correct law for the period: Sections 73/74 up to FY 2023-24, Section 74A from FY 2024-25, Rules 88C/88D, Section 75(4) hearing, and the Income-tax Act 1961 for older tax years
- ✓ Annexure list and step-by-step portal filing instructions for your notice type
- ✓ Choose your stance: contest, part-pay through DRC-03 and contest the rest, or accept and close
- ✓ Never invents figures or case law: missing numbers become [placeholders] and weak points are flagged before you file
- ✓ Three free revisions: add figures, change tone, or add a point after you check your books
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- 1Fill in a few details (or click 'Fill with an example').
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Notisaar vs the alternatives
| Notisaar | CA / GST consultant | ChatGPT | Free templates online | |
|---|---|---|---|---|
| Reply written for your exact notice and figures | Yes | Yes | If you prompt it well | No, generic |
| Answers every paragraph in order, with reconciliation table | Yes | Yes | Sometimes | No |
| Right form, section and period (73/74 vs 74A, Rule 88C/88D) | Built in | Yes | Often mixed up | Often outdated |
| Refuses to invent figures or case law | Yes, uses [placeholders] | Yes | Can invent | n/a |
| Turnaround | Minutes | Usually days | Minutes | Minutes |
| Judgement on serious cases (fraud, large demands) | Flags them and tells you to see a CA | Yes | No | No |
| Price | ₹99 per reply, 3 revisions | Usually a few thousand rupees per notice | Free / subscription | Free |
Get your Notisaar result
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Frequently asked questions
How much does it cost?
₹99 per notice reply. That covers the full draft (summary, reply, reconciliation table, annexure list, filing steps) and up to 3 revisions, for example after you add figures from your books. There is no subscription. The notice decoder and deadline calculator on this page are free.
Why not just ask ChatGPT?
You can, but you then have to know what to ask: the right form (ASMT-11, DRC-06, Part B), the section that applies to your period (73/74 vs 74A), what a reconciliation should look like and which points to request (personal hearing, DIN, limitation). Notisaar is set up for exactly these notices, answers every paragraph in order, refuses to invent figures or case law, and tells you when the case needs a CA.
Can I file the reply myself?
Yes. ASMT-11, DRC-06, DRC-01B/01C Part B, REG-18 and RFD-09 are filed by the taxpayer on the GST portal, and income tax notices are answered under Pending Actions > e-Proceedings on the e-Filing portal. The draft ends with the exact steps for your notice. We don't file anything for you.
What is the deadline to reply to a GST notice?
It depends on the notice: 7 days for DRC-01B and DRC-01C, 30 days for ASMT-10 (the officer can extend it), 7 working days for REG-17, 15 days for RFD-08, and the date written in the notice for DRC-01A and DRC-01 show cause notices. Use the free deadline calculator on this page and always go by the date on your notice.
My supplier filed GSTR-1 late, so 2B is lower than my 3B. What do I say?
Show invoice by invoice that the credits appear in a later month's GSTR-2B, that goods were received and paid for, and that no credit is claimed twice. Be honest that ITC was claimed before it appeared in 2B; officers sometimes ask for interest on that period. The draft builds this reconciliation for you.
When do I need a CA instead?
For a DRC-01 demand, any allegation of fraud, suppression or fake invoices, income tax scrutiny (143(2)) or reopening (148A/148), amounts above about ₹5 lakh, or if you have missed the deadline. The draft is still a useful starting point for your CA, but have them review it.
Does it work for income tax notices?
Yes: 143(1)(a) adjustments, 139(9) defective returns, 143(1) demands (rectification under Section 154 or appeal), 143(2)/142(1) queries, 148A show cause and 133(6) information requests. It follows the Income-tax Act 1961 for tax years before 1 April 2026, and the section numbers on your notice if it cites the new Income-tax Act 2025.
Will it make up judgments to sound strong?
No. It argues from the statute, your facts and your documents. It cites a circular or judgment only when it is certain it exists, and leaves [placeholders] for any figure you didn't give. Check every citation before you file.
Is my data safe?
Your text is used only to generate your draft. Never paste your portal password or OTP - they are never needed. You can remove the GSTIN or PAN and add it in the final copy yourself.