Received an Income Tax or GST Notice? Here Is What You Should Do
Getting an income tax or GST notice is stressful, but it is rarely a reason to panic – and it is never a reason to ignore it. Most notices are routine and are resolved by filing the right reply on time. This guide explains the common notices a business in Hyderabad receives and the exact steps to take when one lands.
Common GST notices
Typical GST notices include GSTR-3A (for not filing returns), ASMT-10 (scrutiny of returns pointing out discrepancies), DRC-01A (an intimation before a formal demand, giving you a chance to explain or pay), and DRC-01 (a show cause notice raising a demand under Section 73 for non-fraud cases or Section 74 for fraud cases). Each has its own reply form and time limit.
Common income tax notices
Frequently seen income tax notices include an intimation under Section 143(1) (comparing your return with the department’s computation), Section 139(9) (a defective return), Section 142(1) (a request for information or to file a return), Section 143(2) (selection for scrutiny), Section 148 (income escaping assessment), and Section 245 (adjusting a refund against an existing demand).
What you should do on receiving an income tax or GST notice
1. Do not ignore it – note the deadline
Every notice carries a response deadline. Missing it can turn a simple query into an ex-parte demand, penalty or best-judgment assessment. Diarise the date the moment you receive the notice.
2. Verify it is genuine
Check the Document Identification Number (DIN) and confirm the notice appears in your account on the income tax portal or the GST portal. Genuine notices are issued through the portal; be wary of fake notices sent only by email or message.
3. Read exactly what is asked
Identify the section, the period, and the precise issue – a mismatch, a non-filing, a discrepancy in input tax credit, or an information request. The reply must address that specific point, with evidence.
4. Gather records and reconcile
Pull the relevant returns, invoices, ledgers, bank statements and reconciliations (for example GSTR-2B versus books, or 26AS/AIS versus your income). A well-documented reply resolves most notices.
5. Respond on the portal – and take professional help early
File the reply through the portal within time, keep the acknowledgement, and involve a professional early, especially for scrutiny, Section 73/74 demands or reassessment. A considered reply now can avoid a costly appeal later.
Why the time limit on a notice matters
Almost every GST notice and income tax notice carries a fixed reply period, and the clock starts from the date of service. An ASMT-10 scrutiny notice, for instance, generally expects a reply within about 30 days, while a DRC-01A gives you a window to explain or pay before a formal demand is raised. Filing a considered, evidence-backed reply within that window is what keeps a routine query from hardening into a confirmed demand with interest and penalty.
Reply, do not fear
A notice is the start of a conversation, not a verdict. Many are resolved simply by producing a reconciliation or a missing document. The mistakes that turn a small GST notice into a large problem are ignoring it, replying without evidence, or admitting liability loosely. Keep your response factual, attach the supporting records, cite the relevant provision, and preserve every acknowledgement. If the matter involves a Section 73 or 74 demand, treat the first reply as the foundation of any future appeal – because it is.
Received a notice in Hyderabad? We can help
ComplianceKart drafts replies and represents businesses across Hyderabad – Kondapur, Gachibowli, Kokapet, Manikonda, Kothaguda, Hitech City and Mindspace – through scrutiny, Section 73/74 demands, first appeal and the GST Appellate Tribunal. See our guide to CA services in Hitech City and Gachibowli or visit ComplianceKart.
Frequently asked questions
What happens if I ignore an income tax or GST notice?
Ignoring it can lead to an ex-parte order, penalties, interest and a best-judgment or high-pitched demand that is harder and costlier to reverse on appeal.
How do I check if a notice is genuine?
Verify the Document Identification Number (DIN) and confirm the notice is visible in your account on the official income tax or GST portal.
Should I reply to a notice myself?
For a simple 143(1) intimation, often yes. For scrutiny, Section 73/74 demands or reassessment, involve a professional early – the first reply shapes the entire matter.
Related reading
Need this done for your business?
Send us one message. A CA, CS or Advocate replies within a working day — no forms, no obligation.