Receiving a GST notice can feel stressful, but if handled correctly, it can be resolved smoothly. The key is to act promptly, understand the issue, and respond properly.

1. Understand the Type of Notice
- ASMT-10: Discrepancy notice (e.g., mismatch in returns).
- DRC-01: Show Cause Notice (SCN) for tax demand.
- DRC-07: Final demand order.
- REG-03: Clarification for registration.
Always check the section of the GST Act mentioned in the notice.

2. Check the Reason & Details
Download the notice from the GST portal → verify mismatch (sales, ITC, turnover) → compare with your books and returns.

3. Prepare Documentation
Collect invoices, purchase/sales registers, bank statements, reconciliations (GSTR-2B vs books, GSTR-1 vs GSTR-3B). If error is genuine, prepare corrected figures.

4. Draft a Proper Reply
Replies must be filed online. A good reply should:
- Reference notice number, date, and section.
- Present facts of your case clearly.
- Give point-wise clarifications with reconciliations/legal backing.
- Conclude with a request to drop notice if incorrect OR relief if mistake is genuine.

5. Pay Tax If Applicable
If short payment/ITC error is genuine, pay through Form DRC-03. Voluntary payment reduces penalties.

6. Keep Proof of Compliance
Always save copies of your reply, acknowledgement, and challans for future reference or appeals.

7. Appeal If Required
If order (like DRC-07) is unfavorable, file an appeal in Form APL-01 within 3 months.

✅ Practical Tips:
- Never ignore a GST notice.
- Reply within the due date.
- Use professional help for complex cases.
- Maintain monthly reconciliations to avoid future notices.
- Keep replies polite, factual, and well-supported.

👉 In short: Read → Reconcile → Reply → Rectify.

Yes, mismatches between GSTR-1 (outward supplies) and books of accounts / GSTR-3B are tracked by the GST system. If GSTR-1 shows higher sales than books, it indicates higher tax liability reported in GSTR-1 compared to GSTR-3B.

What can happen:
- System may generate an auto-intimation notice (like DRC-01A or ASMT-10).
- Department may demand explanation or additional tax payment.
- Continuous mismatches increase audit risk and chances of scrutiny.

What you should do:
- Reconcile your GSTR-1 vs GSTR-3B vs books every month.
- If mistake is genuine, amend the invoice details in next GSTR-1 (within allowed time).
- If extra liability is correct, pay the difference with interest through DRC-03.
- Maintain proper working papers to justify your figures in case of enquiry.

Practical Tip:
Mismatches are one of the top triggers for GST notices. Keeping monthly reconciliations ready is the best safeguard against unnecessary tax demands.

👉 In short: Yes, GSTN can question mismatches. Best approach is to reconcile, amend where possible, and pay only if genuinely liable.

No, GST paid under the wrong head cannot be directly adjusted or transferred between CGST, SGST, and IGST. Each tax head is separate in the GST system.

What you need to do:
- Pay the correct tax liability again under the proper head (e.g., IGST).
- Claim a refund of the tax wrongly paid under the wrong head using Form GST RFD-01 on the GST portal.
- Refund will be credited back to your bank account once processed by the department.

Example:
If IGST was payable but CGST + SGST were wrongly paid, you must:
1. Pay IGST liability.
2. File refund claim for wrongly paid CGST + SGST.

Practical Tip:
Always double-check the place of supply and type of supply (intra-state vs inter-state) before paying GST to avoid wrong head payments. This prevents double cash outflow and refund delays.

👉 In short: Pay again under the correct head and claim refund for the wrong payment.

No. As per GST rules, Input Tax Credit (ITC) can be claimed only if it appears in your GSTR-2B. If your supplier has not filed GSTR-1 on time, the credit will not be reflected in your 2B, and you cannot claim it for that tax period.

What you should do:
- Follow up with your supplier and insist they file/rectify their GSTR-1.
- Once your supplier uploads the invoice in their GSTR-1, it will reflect in your next GSTR-2B.
- Claim ITC only in the month when it appears in your 2B.

Practical Impact:
- Delay in supplier’s filing = delay in your ITC claim.
- Cash outflow may increase temporarily as you may need to pay GST from your pocket until ITC reflects.

Practical Tip:
Regularly reconcile your purchase register with GSTR-2B and work only with compliant suppliers to avoid blocked ITC.

👉 In short: No reflection in GSTR-2B = No ITC claim until supplier files correctly.

Once filed, GSTR-3B cannot be revised. If you entered wrong figures, you must correct them in the subsequent month’s GSTR-3B.

What to do:
- If you reported less tax: Pay the shortfall in next month’s GSTR-3B with applicable interest.
- If you reported excess tax: Adjust the excess in the next return (reduce liability).
- If ITC was claimed wrongly: Reverse it with interest in next GSTR-3B.
- If ITC was missed: Claim it in the next return, provided it appears in your GSTR-2B and is within time limit (30th November of following FY).

Practical Tip:
Always reconcile books vs. GSTR-1 vs. GSTR-3B vs. GSTR-2B before filing. Even small errors can trigger notices or mismatches later.

👉 In short: No revision option in GSTR-3B → corrections must be made in next month’s return with tax/interest if applicable.