Got a GST Mismatch Notice (DRC-01B, DRC-01C or ASMT-10)? How to Reply
DRC-01B flags sales tax in GSTR-1 above GSTR-3B and DRC-01C flags credit in GSTR-3B above GSTR-2B. Both must be answered within 7 days in Part B, by paying through DRC-03 or explaining, or your next GSTR-1 is blocked. ASMT-10 is a scrutiny notice answered in ASMT-11, generally within 30 days.
A GST notice often arrives as a short email: "a difference has been noticed". It is easy to put aside, and that is the costly mistake. The automated notices give you only seven days, and ignoring them blocks your next GSTR-1.
The three common notices
| Notice | What it flags | Time to respond | If you do not respond |
|---|---|---|---|
| DRC-01B (Rule 88C) | Tax on sales in GSTR-1 is higher than tax paid in GSTR-3B, beyond a set limit | 7 days | Your next GSTR-1 is blocked |
| DRC-01C (Rule 88D) | Credit claimed in GSTR-3B is higher than credit in GSTR-2B, beyond a set limit | 7 days | Your next GSTR-1 is blocked |
| ASMT-10 (Section 61) | An officer's scrutiny of your returns has found discrepancies | As stated in the notice, generally up to 30 days | The officer can start proceedings to demand tax |
How to reply to DRC-01B or DRC-01C
Reply in Part B of the same form on the GST portal. You can:
- Pay the difference through Form DRC-03 and give the DRC-03 reference;
- Explain the difference with reasons; or
- Do both: pay part and explain the rest.
Common valid reasons:
| DRC-01B (sales) | DRC-01C (credit) |
|---|---|
| Tax paid in a later month's GSTR-3B | Supplier uploaded the invoice in a later month |
| Invoice reported twice in GSTR-1 and corrected later | Credit on imports (bill of entry) not shown in GSTR-2B in the same way |
| Advance tax already paid in an earlier month | Credit under reverse charge on supplies from unregistered persons |
| Credit notes reported in a different month | Credit carried over from a transition or re-claim |
How to reply to ASMT-10
Reply in Form ASMT-11. An ASMT-10 usually covers a whole year and several issues at once. Answer each point separately, with a reconciliation table and documents. If you accept part of it, pay that part through DRC-03 with interest and say so in the reply.
A worked example
A Ghaziabad electrical contractor receives DRC-01C for June 2026: credit claimed ₹4,80,000, GSTR-2B shows ₹3,60,000. The accountant finds:
- ✓₹90,000 on invoices a supplier uploaded in July, now in July's GSTR-2B;
- ✓₹30,000 claimed by mistake on a supplier's invoice that was never uploaded.
The reply in Part B pays ₹30,000 through DRC-03, with interest, and explains the ₹90,000 with the July GSTR-2B and invoice copies.
How to avoid notices
- ✓Reconcile GSTR-1 with GSTR-3B every month before filing GSTR-3B.
- ✓Claim credit only as shown in GSTR-2B, and keep a list of timing differences.
- ✓Use GSTR-1A to correct sales mistakes before GSTR-3B.
- ✓Keep reconciliations on file. A reply is easy when the working papers already exist.
Frequently asked questions
Can I reply after seven days?
Late replies are possible, but your GSTR-1 stays blocked until you reply or pay.
Should a CA handle ASMT-10?
It is wise. A scrutiny reply can lead to a formal demand if it is incomplete.
Does paying close the matter?
For DRC-01B and DRC-01C, paying the difference resolves that intimation. For ASMT-10, the officer decides after reading your reply.
Sources
- ✓DRC-01B: GST liability mismatch guide, Razorpay
- ✓Guide to GST DRC forms, Masters India
- ✓GST notices: types and how to respond, SMFG India Credit
This is a summary, not legal advice. Confirm with your chartered accountant before you rely on it.
Written by
Founder, Airwix Technologies (Sleet)
Vatsal Sutariya is the founder of Airwix Technologies in Ahmedabad, the company that builds Sleet: SleetHR for HR and payroll, and Sleet Accounting for GST billing and books. He writes about GST, invoicing, business tax and choosing software for Indian businesses, and checks each rule against the official notification before it is published.
LinkedIn profile →