What should I do after receiving a GST Show Cause Notice?

Thanks for sharing the same. 

Sir, 

As soon as you receive the notice, check the date of receipt and immediately note down the mandatory 30-day deadline so that the limitation period for filing the reply does not expire.

Next, you need to thoroughly review the notice to understand the exact allegation raised by the department, whether it's a mismatch between GSTR-1 and GSTR-3B, an Input Tax Credit (ITC) discrepancy, an HSN classification issue, or a tax short-payment.

Once you identify the cause, you will need to gather all relevant documents for that specific financial period, including invoices, e-way bills, bank statements, and books of accounts. Based on these records, reach to an advocate and they will draft a legally sound, point-by-point written response backed by statutory provisions and solid evidence.

If, the proper officer schedules a personal hearing, whether virtual or physical. The advocate will make sure your case is properly represented to argue the matter orally.

First thing to do: identify which type of SCN you received.

DRC-01: formal Show Cause Notice demanding payment. Response via Form GST DRC-06 on the GST portal, by the date mentioned in the notice.
DRC-01A: intimation (pre-notice) under Section 73 for non-fraud cases. You have the option to pay and close without a full reply.
DRC-01B: intimation after GSTR-1/GSTR-3B comparison. Can be acknowledged online.

For a DRC-01 (most common for ITC or turnover disputes):

1. Check the SPECIFIC SECTION cited - Section 73 (non-fraud) or Section 74 (fraud/willful suppression). The penalties and timelines differ significantly.

2. Before drafting a reply, run a reconciliation between GSTR-2B and your books for the period in question. Most SCNs on ITC are triggered by mismatches here. If the ITC is legitimate and the mismatch is a timing issue, document that clearly in the reply.

3. Respond via Form DRC-06 on the GST portal within the notice deadline (typically 30 days from DRC-01 date). Attach reconciliation statements, invoices, and payment proof.

4. If you agree with the demand fully, you can pay using DRC-03 and request for closure. If partially, pay the undisputed portion and contest the rest.

Do not ignore the notice deadline - default leads to an ex-parte order under Section 73(9) or 74(9) with maximum penalties.

This [GST notice reply guide - online portal 2026](https://taxgarden.in/blog/gst-notice-reply-online-portal-2026) covers DRC-06 filing steps and common SCN scenarios.

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