A scrutiny notice under GST is the department’s way of saying: the numbers in your returns do not match, please explain. It is not yet a demand — and a well-prepared reply often closes the matter.
1. Note the deadline first
The notice states the time allowed to reply. Put it in your calendar today. Replies filed after the deadline weaken your position, and the officer may move to further proceedings.
2. Identify exactly what is being questioned
Scrutiny notices usually list specific discrepancies, for example:
- Outward supplies in GSTR-1 higher than tax paid in GSTR-3B
- Input tax credit claimed in GSTR-3B higher than credit available in GSTR-2B
- Differences between the annual return and monthly returns
3. Reconcile with evidence
Prepare a month-wise reconciliation for each discrepancy. Typical explanations include amendments made in later months, credit notes, invoices reported in a different period, or vendor filing delays. Attach invoices, ledgers and portal screenshots that prove each point.
4. Pay only what is genuinely due
If part of the difference is a real short payment, paying it with interest before the reply can strengthen your case for the rest and limit further proceedings.
5. Reply formally on the portal
File the reply in the prescribed form with a clear covering letter, the reconciliation and annexures. Keep the acknowledgement.
A good reply answers every point the officer raised — no more, no less — and proves each statement with a document.
If you have received a notice, talk to our team before you reply.