Under the Goods and Services Tax (GST) regime in India, timely compliance is critical. One of the most overlooked areas by taxpayers is responding to GST notices.
Whether due to ignorance, negligence, or administrative delay, missing a GST notice can lead to serious consequences. These include penalties, cancellation of registration, and even prosecution in extreme cases.
In this article, we’ll explain what happens when a GST notice goes unanswered, the legal implications, and how to avoid penalties under the GST law.
What is a GST Notice?
A GST notice is an official communication sent by the GST department to a registered taxpayer. The purpose is to seek clarification, demand compliance, or initiate legal action under the GST Act.
Common types of GST notices:
• ASMT-10: Mismatch in return filings or suspected under-reporting
• SCN (Show Cause Notice): For alleged non-compliance or evasion
• DRC-01: Summary of demand for tax, interest, or penalty
• GSTR-3A: Notice for non-filing of returns
Notices are generally sent via the GST portal and are deemed served once uploaded or emailed.
What If You Don’t Respond to a GST Notice?
Ignoring a GST notice is not advisable. The law treats non-response as non-cooperation and can trigger adverse actions by the GST authorities.
1. Assumed Acceptance of Charges
If you fail to respond within the time limit (typically 7–30 days depending on the notice), the officer may assume the facts mentioned in the notice are undisputed. This leads to ex parte orders being passed without your input.
2. Monetary Penalties
The GST law prescribes penalties for non-reply to GST notices, especially in cases where demands are raised or misreporting is suspected.
Key Penalty Provisions:
• Section 122 of CGST Act: ₹10,000 or the tax amount involved (whichever is higher)
• Section 73 & 74: Interest and penalty on tax short paid or not paid, even without intent to evade
• Late fees for delayed return filing (Section 47)
3. Demand Orders Without Hearing
In case of a Show Cause Notice (SCN) or DRC-01, failure to reply can lead to Order-in-Original (OIO) being passed without any further hearing. This results in tax demands and potential attachment of bank accounts.
Legal Consequences of Ignoring GST Notices
Let’s examine the legal implications of not replying to a GST notice:
| Type of Notice | Non-Response Consequence |
| ASMT-10 (Mismatch) | Tax demand passed ex parte |
| SCN (Sec 73/74) | Penalty up to 100% of tax |
| GSTR-3A | Best judgment assessment under Sec 62 |
| DRC-01 | Order without hearing, garnishment |
| DRC-07 | Initiation of recovery proceedings |
GST notice non-compliance consequences can include:
• Blocking of E-way bill generation
• Suspension of GST registration
• Attachment of property/bank accounts
• Prosecution under Section 132 for willful evasion
What’s the Deadline to Respond?
Every notice clearly mentions a reply timeline, usually:
• 7–30 days from the date of issue
• For return-related defaults, it can be extended up to 30 days
Failure to respond within the stipulated time is treated as non-compliance. Legal action may follow automatically.
What Should You Do If You Missed a GST Notice?
If you’ve already missed a GST notice or response deadline, take immediate remedial steps:
- Login to GST Portal and check all notices under the “View Notices and Orders” tab
- File a reply using relevant forms (e.g., DRC-06 for replies to DRC-01)
- Apply for condonation of delay (in some cases) citing reasonable cause
- Consult a tax expert to draft a proper legal reply with documentary evidence
Can a GST Registration Be Cancelled for Non-Response?
Yes. Under Rule 21 of the CGST Rules, failure to respond to notices like GSTR-3A can result in suo-moto cancellation of your GSTIN. This also applies to failure to conduct business from the declared place.
You may also be barred from filing returns, which creates a compliance chain reaction affecting your entire business operations.
How to Avoid Penalties: Best Practices
To avoid GST penalties for non-reply or missed notice situations, follow these practices:
• Enable email & SMS alerts on the GST portal
• Check notices dashboard weekly for any new communications
• Maintain organized documentation for ITC and turnover
• Respond within time and use appropriate GST reply forms
• Keep in touch with your GST consultant or CA regularly
Conclusion
A missed GST notice is not just an administrative issue — it’s a legal landmine. The penalty for not responding to GST notices can range from fines to recovery proceedings, and in rare cases, criminal prosecution.
Taxpayers must treat every notice with urgency and precision. If you’re unsure how to respond to a notice or missed the deadline, it’s best to consult a GST expert or CA immediately to mitigate damage.
Need help with GST compliance or notice responses? Contact our tax experts today for professional guidance and avoid costly penalties.
Frequently Asked Questions (FAQs)
Q1. Is there a penalty for not replying to ASMT-10?
Yes. Ignoring ASMT-10 may result in an ex parte tax demand under Rule 99 without further notice.
Q2. What is the penalty under Section 122 for non-compliance?
Minimum ₹10,000 or tax involved — whichever is higher.
Q3. Can GST authorities freeze my bank account for missing a notice?
Yes. If you fail to respond to demand notices like DRC-01 or DRC-07, your bank account may be provisionally attached under Section 83.
Q4. Can I challenge a demand order passed without reply?
Yes, through filing an appeal under Section 107, but you’ll need strong grounds and may need to pay pre-deposit.