Skip to content
+91 94070 00157 info@canatasha.com Zone-1, M.P. Nagar, Bhopal
ISO 9001:2015 Certified Practice  ·  Serving Madhya Pradesh since 2017  ·  Book a consultation

GST Notice Consultant in Bhopal

ASMT-10 scrutiny, DRC-01 show cause, Section 65 audits and first appeals in APL-01, handled end to end from Bhopal.

A GST notice is a clock, not a verdict. Almost every notice carries a fixed number of days to reply, and the cost of missing that window is far higher than the tax originally in dispute — an ex-parte order under Section 73 or 74 becomes a recovery proceeding, and the appeal that follows needs a 10% pre-deposit before it will even be heard.

Which notice have you received?

The first thing to establish is the section the notice is issued under, because that decides both your deadline and your options. These are the notices we see most often at our MP Nagar office.

FormSectionWhat it meansTime to respond
ASMT-1061Scrutiny of returns — the officer has found a discrepancy, commonly GSTR-3B against GSTR-2B or GSTR-1Usually 30 days
DRC-01A73(5) / 74(5)Intimation before a formal show cause notice — a chance to pay or explain firstAs stated, commonly 15 days
DRC-0173 / 74 / 74AFormal show cause notice demanding tax, interest and penalty30 days
ADT-0165Departmental audit — records to be produced for a full financial year15 days notice before audit begins
REG-1729Show cause for cancellation of registration7 working days
MOV-01 to MOV-11129 / 130Goods or vehicle detained in transit — e-way bill or documentation defectImmediate; 7 days for penalty order
Section 73 or Section 74 — the difference decides everything. Section 73 covers cases with no allegation of fraud: the penalty is limited, and paying before the show cause notice can close the matter with no penalty at all. Section 74 alleges fraud, wilful misstatement or suppression — penalty runs to 100% of tax and the department gets a longer limitation period. Departments sometimes invoke Section 74 where the facts only support Section 73. Contesting that characterisation early is often worth more than arguing the tax itself.

What changed for FY 2024-25 onwards

The Finance Act 2024 introduced Section 74A, which merges the Section 73 and Section 74 procedures for tax periods from FY 2024-25 onward into a single limitation framework. Older periods continue to run under the existing Sections 73 and 74. A reply drafted under the wrong provision invites avoidable trouble, so the tax period on the notice matters as much as the allegation.

How we handle a notice

We do not send a holding reply asking for time. A weak first reply becomes part of the record and is quoted back at you in appeal.

  • Read the notice against the return. We reconcile the department's figures with your GSTR-1, GSTR-3B, GSTR-2B and books to find out whether a demand exists at all. A significant share of scrutiny notices arise from timing differences and supplier filing delays rather than any real short payment.
  • Confirm the limitation date. We check whether the notice itself is within time. A notice issued beyond the statutory period is challengeable on that ground alone.
  • Assemble the evidence. Invoices, e-way bills, transport documents, ledgers, bank statements and supplier confirmations — attached to the reply, not merely referred to.
  • Draft and file. The reply is filed on the GST portal with a documented paper trail, within the window.
  • Appear at the personal hearing. Attendance matters. Orders passed ex-parte are markedly harder to reverse.

If an order has already been passed

An adverse order is not the end of the matter. A first appeal is filed in Form APL-01 before the Appellate Authority within three months of communication of the order, extendable by one further month if sufficient cause is shown. The appeal requires a pre-deposit of 10% of the disputed tax.

If you are outside that window, options still exist depending on the facts — rectification under Section 161 for an error apparent on the face of the record, restoration where the order was passed without a hearing, or a writ petition before the High Court in a narrow set of circumstances. Bring us the order and we will tell you honestly which of these applies.

Working with a Bhopal firm on a GST matter

GST proceedings are conducted through the portal, but personal hearings before the State and Central authorities in Bhopal are still attended in person. Being able to hand over the file, sit across a table for it, and have someone appear at the hearing on your behalf makes a practical difference to how a matter progresses.

Questions

Frequently asked

What is the deadline to reply to a GST show cause notice in DRC-01?
Thirty days from the date of service of the notice, unless the notice itself specifies otherwise. Extensions are not automatic. If the deadline is close, the priority is filing a substantive reply on record rather than a request for more time.
Can a GST notice be ignored if the amount is small?
No. An unanswered notice usually results in an ex-parte order confirming the entire demand along with interest and penalty. Reversing that order costs far more than replying would have, and a first appeal needs a 10% pre-deposit of the disputed tax before it is heard.
Most of my notices are GSTR-3B versus GSTR-2B mismatches. Is that a real demand?
Often it is not. These mismatches frequently arise because a supplier filed late or reported an invoice in a different period, not because credit was wrongly claimed. It has to be reconciled invoice by invoice and explained with evidence. Once the reconciliation is on record, many of these notices are dropped.
What is the difference between Section 73 and Section 74?
Section 73 applies where there is no fraud, wilful misstatement or suppression of facts, and carries a lower penalty. Section 74 alleges fraud and carries penalty up to 100% of the tax with a longer limitation period. For tax periods from FY 2024-25 onward, Section 74A provides a single unified framework.
Do you handle GST matters for businesses outside Bhopal?
Yes. Notices are served and replies are filed on the GST portal, so the work can be done from anywhere in India. Personal hearings in Madhya Pradesh we attend directly; elsewhere we prepare the file and brief local counsel where needed.
Talk to a Chartered Accountant

Let's get your compliance in order.

A 20-minute call with CA Natasha Rajvaidya is usually enough to tell you where you stand, what it will cost, and what happens next.