GST ASMT-10 Scrutiny Notice? Small-Business Reply Guide

Who this guide is for

This guide is for GST-registered small businesses, traders, manufacturers, service providers and professionals in India who have received a scrutiny notice in Form GST ASMT-10. You will usually see it as an entry under "Additional Notices and Orders" on the GST portal, and often an SMS or email alert too. It is also useful for:

• Owners who got an alert about a "discrepancy in returns" but are not sure what it means.
• Businesses where the bookkeeper noticed a mismatch between GSTR-1 and GSTR-3B and want to fix it before it escalates.
• Anyone whose input tax credit claimed in GSTR-3B is higher than the credit shown in the auto-drafted GSTR-2B.
• Small businesses that want to file the ASMT-11 reply themselves but need a clear, plain-language method.

This guide covers the scrutiny stage only. If the matter has already moved to a show-cause demand notice in Form DRC-01, that is a later and more serious stage with its own process. For that, see our companion guide on GST DRC-01 demand notice and DRC-03 payment. If your input tax credit has been blocked in the ledger, that is a different problem covered in our GST ITC blocked under Rule 86A action guide.

What you can do this weekend

Friday evening

Log in to gst.gov.in. Go to Services > User Services > View Additional Notices and Orders. Open the ASMT-10 entry and download the PDF. Read the first page carefully and write down three things: the reply deadline, the tax periods covered, and the reference number of the notice.

Do not panic. ASMT-10 is the gentlest stage of GST enforcement. It is an invitation to explain, not a final demand. The officer has spotted a figure that does not tie up and wants your side of the story.

Read the discrepancy table at the heart of the notice. Each row states an amount and the basis for it. Mark each row with what kind of mismatch it is: outward supply difference, input tax credit difference, reverse charge, or e-way bill / e-invoice mismatch.

Saturday

This is reconciliation day. Download your GSTR-1, GSTR-3B and GSTR-2B for every period named in the notice. Open your accounting software or books alongside them.

Work through the most common mismatches one at a time:

• GSTR-1 vs GSTR-3B: Does the outward taxable value and tax you declared in GSTR-1 match the tax you actually paid in GSTR-3B for the same period? A common innocent cause is a sale reported in one month but tax paid in the next, or a credit note adjusted in a different period.
• GSTR-3B vs GSTR-2B: Is the input tax credit you claimed in GSTR-3B higher than what appears in the auto-drafted GSTR-2B? This usually happens when a supplier filed late, or did not file at all, or you claimed credit on an invoice not yet uploaded by the supplier.
• Reverse charge: Did you receive supplies on which you had to pay tax under reverse charge, and did you actually pay and claim it correctly?

For each flagged figure, build a small reconciliation statement: "books say X, GSTR-1 says Y, GSTR-3B says Z, the difference is explained by [reason]." This statement is the spine of your reply.

Sunday

Pull together the supporting documents that prove each reconciliation line: tax invoices, credit and debit notes, the relevant GSTR-2B, e-way bills where movement of goods is in question, and bank payment proof. Index them as Annexure A, B, C and so on.

Draft your ASMT-11 reply point by point, answering each discrepancy row separately. Where you agree an amount is due, say you will pay it; where you disagree, give the reason and cite the annexure.

If the discrepancy is large, spans many periods, or the notice uses words suggesting suppression or fraud, call a Chartered Accountant or GST practitioner before Monday. A short paid consultation now can prevent a costly demand later. Have the reply ready to file early in the week, well before the deadline.

Documents and evidence checklist

Step-by-step action plan

Step 1 — Download the notice and note the deadline

Log in to the GST portal and open Services > User Services > View Additional Notices and Orders. Find the ASMT-10 entry, open it, and download the PDF. On the first page, note the reply deadline, the tax periods covered, and the reference number. Mark the deadline on your calendar with a reminder several days earlier. Missing the deadline is the single most damaging mistake you can make at this stage.

Step 2 — Understand what ASMT-10 actually is

ASMT-10 is the scrutiny-of-returns notice under the GST law. A proper officer reviews your filed returns, finds a figure that does not reconcile, and issues this notice asking you to explain the discrepancy or pay the tax. It is not a demand and not a penalty. The reply form is ASMT-11. If your explanation satisfies the officer, the officer drops the matter by issuing an order in Form ASMT-12. If the explanation is not accepted, or you do not reply, the matter can escalate to a demand notice and adjudication. So treat the ASMT-10 stage as your cheapest, easiest chance to close the issue.

Step 3 — Identify the type of each discrepancy

Read the discrepancy table row by row. Each flagged amount falls into a category, and each category has a standard reconciliation answer:

• GSTR-1 vs GSTR-3B mismatch: the outward tax you declared in GSTR-1 differs from the tax you paid in GSTR-3B. Often a timing difference between months or a credit note adjusted in a later period.
• ITC claimed in GSTR-3B higher than GSTR-2B: you claimed more input tax credit than the auto-drafted statement supports, usually because a supplier filed late or not at all.
• Reverse charge not paid: the records suggest you received supplies attracting reverse charge tax that was not paid.
• E-way bill or e-invoice mismatch: the value of supplies in your returns does not align with e-way bill or e-invoice data.

Knowing the category tells you exactly which document proves your case. A generic "everything is fine" reply carries no weight; a specific reconciliation does.

Step 4 — Reconcile the returns and your books

For each flagged period, download GSTR-1, GSTR-3B and GSTR-2B and place them next to your books. Match figures head by head: taxable value, IGST, CGST, SGST/UTGST, and input tax credit. Write a one-line explanation for each difference, such as "invoice dated in March, tax correctly paid in April GSTR-3B" or "supplier filed GSTR-1 late; invoice now appears in the subsequent GSTR-2B". For deeper reconciliation strategy where the credit side is the problem, see our guide on GST ITC mismatch and CBIC complaint. To prevent recurring mismatches, our overview of filing GST returns in 2026 covers the monthly discipline that keeps GSTR-1, GSTR-3B and GSTR-2B aligned.

Step 5 — Decide: explain, pay, or both

For each discrepancy, you have three honest options. If no tax is actually due and it is only a timing or reporting difference, explain it with evidence. If tax is genuinely due, pay it through your electronic cash or credit ledger and report the payment in the reply. Sometimes you do both across different rows of the notice. Do not pay a disputed amount only to make the notice disappear; if you are unsure whether tax is due, check with a professional first.

Step 6 — Draft and file the ASMT-11 reply

On the portal, open the ASMT-10 notice and use the Reply option to file Form ASMT-11. Address every discrepancy row separately. For each, state clearly whether you agree or disagree, give the reason, and cross-reference the annexure that supports it. Attach your reconciliation statement and the indexed documents. Keep the language factual and specific. Submit before the deadline and save the acknowledgement reference number and a PDF of the filed reply.

Step 7 — Request more time only if you must

If you genuinely cannot complete the reply in time, for example because you are waiting for supplier confirmations, you can request an extension in writing through the portal or to the officer. Extensions are discretionary and not guaranteed. The safer route is to file the best reply you can within the original window and supplement it later, rather than miss the deadline.

Step 8 — Track the outcome and escalate if it moves to demand

Watch the portal for the officer's response. If your explanation is accepted, the officer issues Form ASMT-12 dropping the proceedings, and you keep that order on file. If the explanation is not accepted, the matter can move to a show-cause demand notice. At that point the stakes rise, and you should engage a Chartered Accountant or GST advocate. See our guide on the DRC-01 demand notice and DRC-03 payment for what happens next.

Escalation ladder

Copy-paste reply template

Use this as the body of your ASMT-11 reply. Replace the text in square brackets with your own details before submitting. Keep one numbered point per discrepancy row in the notice.

When RTI can help

The Right to Information Act, 2005 applies to public authorities, which includes the Central Board of Indirect Taxes and Customs (CBIC) and the State GST departments. In an ASMT-10 scrutiny matter, RTI is a supporting tool, not a substitute for the reply. It can help in these specific situations:

• Getting the basis of the scrutiny: If the notice is unclear about how the officer arrived at a figure, you can file an RTI with the Central Public Information Officer (CPIO) of your jurisdictional CGST Commissionerate asking for the worksheet or basis on which the discrepancy was computed, to the extent it forms part of the record.
• Tracking a pending decision: If you filed an ASMT-11 reply and heard nothing, RTI can help you find out the status, and whether an ASMT-12 order or any internal noting exists on your file.
• Confirming jurisdiction and authorisation: Where you doubt whether the officer who issued the notice had jurisdiction over your GSTIN, RTI can be used to seek the relevant jurisdiction or authorisation records held by the authority.

To file an RTI online, see our step-by-step RTI filing guide. The fee for Central government authorities is a small prescribed amount, and the CPIO must respond within 30 days. If the CPIO does not reply, see our guide on filing a first appeal under RTI Section 19. For strategies on combining grievance routes, our CPGRAMS and RTI guide is useful, and The RTI Playbook covers using RTI in regulatory disputes.

When RTI will not help

RTI has clear limits in a scrutiny matter:

• RTI cannot answer the notice for you: Only a timely, well-evidenced ASMT-11 reply closes the scrutiny. RTI gathers information; it does not satisfy the officer or stop the proceedings.
• RTI cannot reach your supplier's private records: If the discrepancy is caused by a supplier who did not file returns, RTI does not apply to that private business. You must obtain confirmation directly from the supplier or through your own reconciliation.
• RTI does not speed up a decision: The 30-day RTI window is slower than simply filing your reply and following up with the officer. Use the reply and, if needed, CPGRAMS for speed; use RTI for records.

Common mistakes to avoid

• Ignoring the notice: The worst mistake. If you do not reply, the matter escalates to a demand notice with tax, interest and penalty exposure. Always file an ASMT-11, even if you believe the notice is wrong.
• Replying without reconciliation: A one-line "all returns are correct" reply will not satisfy the officer. Build a figure-by-figure reconciliation tying your books to your filed returns, and attach it.
• Paying a disputed amount in a panic: Do not pay tax you do not actually owe just to close the notice. If it is only a timing or reporting difference, explain it. Pay only what is genuinely due, and report that payment.
• Confusing ASMT-10 with a demand: ASMT-10 is scrutiny, not adjudication. Treat it as a chance to explain. The demand stage (DRC-01) is separate and more serious.
• Missing the deadline by a day: Calendar the deadline with an early reminder. A late or missing reply weakens you at every later stage.
• Not keeping the acknowledgement: Always save the ASMT-11 acknowledgement reference number and a PDF of the submitted reply. You will need them to prove you replied on time.
• Handling a fraud-flavoured notice alone: If the notice uses language suggesting suppression, fake invoices, or fraud, do not go it alone. Engage a Chartered Accountant or GST practitioner immediately, because the consequences and the framing matter.
• Stopping regular return filing: Keep filing GSTR-1 and GSTR-3B on time while the scrutiny is pending. A defaulting taxpayer loses credibility at every forum.

For the broader picture of GST notices, our DRC-01 and DRC-03 guide explains the demand stage, and the Rule 86A ITC block guide covers what to do if your credit ledger is frozen during a dispute.