If you’re a business owner or GST-registered taxpayer, you might receive a notice called ASMT-10. Don’t worry — it’s not a penalty notice, but part of the GST scrutiny process.
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What is ASMT-10 Notice in GST?
It is a Notice for Scrutiny of Returns under Section 61 of the CGST Act, 2017 and Rule 99(1) of the CGST Rules.
It is issued when the GST officer finds any mismatch or discrepancy in your GST returns — especially GSTR-3B, GSTR-1, and GSTR-2B.
In simple words: If your GST returns don’t match or raise a red flag, the department may send you an ASMT-10 asking for clarification.
Why Do You Receive This Notice?
Common reasons include:
- Mismatch between GSTR-1 and GSTR-3B
- Excess Input Tax Credit (ITC) claimed in GSTR-3B compared to GSTR-2B
- Sudden increase or decrease in turnover or ITC
- Non-payment of tax under Reverse Charge Mechanism (RCM)
- Mismatch in e-Way Bill data with GSTR-3B
When is this Notice Issued?
- After GST return filing, usually at the end of the financial year
- When the GST portal’s scrutiny system finds inconsistencies
- Random selection for departmental checks
In 2025, several ASMT-10 notices were issued between April and July for FY 2023–24.
What Does Notice Contain?
- GSTIN and taxpayer name
- Tax period for which scrutiny is being done
- Details of mismatches or discrepancies
- 15-day deadline to respond
- Instructions to file a reply using Form ASMT-11
How to Reply to ASMT-10?
File your reply in Form ASMT-11 on the GST portal within 15 days of receiving the notice.
Your reply should include:
- Reconciliation sheet (e.g., GSTR-3B vs GSTR-2B)
- Copies of purchase invoices
- Ledger or purchase register
- GSTR-2B download and cross-check
- Challans (if ITC is being reversed)
- Legal explanation or justification
Respond clearly and provide documents to avoid further notices.
Real Case Study: ASMT-10 Received and Successfully Closed
Business Name: Shree Electronics, Jaipur
Nature: Electronics Wholesaler
Financial Year: 2023–24
Turnover: ₹1.8 Crore
ITC Claimed in GSTR-3B: ₹18,70,000
Eligible ITC in GSTR-2B: ₹16,35,000
Mismatch: ₹2,35,000
What Happened:
The GST officer issued ASMT-10 in May 2025 due to excess ITC claimed. On checking, the accountant found that four vendors had filed their GSTR-1 late, so their invoices did not appear in the GSTR-2B for that month.
Action Taken:
- Downloaded GSTR-2B and matched it with the purchase register
- Collected invoices and GSTR-1 filing proofs from vendors
- Filed a detailed reply in ASMT-11 with supporting documents
Result:
The officer was satisfied and closed the case with ASMT-12. No penalty, no show cause notice.
What Happens After You Reply?
| Status of ASMT-11 Reply | Officer’s Action |
|---|---|
| Satisfactory | Case is closed with ASMT-12 |
| Unsatisfactory | Show Cause Notice (DRC-01) may be issued |
| No Reply | Best judgment assessment or penalty |
Consequences of Ignoring ASMT-10
- Reversal of Input Tax Credit
- Penalty and interest
- Blocking of ITC on the GST portal
- Issuance of DRC-01 (Show Cause Notice)
- Possible audit or investigation
It’s always better to respond with clarity and documentation within the given time.
Legal References
| Law/Rule | Purpose |
|---|---|
| Section 61 of CGST Act | Power to scrutinize returns |
| Rule 99 of CGST Rules | Notice and reply procedure |
| ASMT-10 | Notice for discrepancies |
| ASMT-11 | Taxpayer’s reply to ASMT-10 |
| ASMT-12 | Closure order by officer |
Advice:
If you receive an ASMT-10 notice, it means the GST department has found some mismatch in your returns. Don’t panic — just respond with the correct explanation and documents. If everything is okay, the matter is closed without penalty or further action.
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