Precision. Structure. Accountability.

A DRC-01 is a Show Cause Notice issued by the GST department proposing a tax demand against your business. Do not ignore it — there is a strict deadline to respond, typically 30 days from the date of notice. You should immediately review the notice to understand the nature of the demand, gather all relevant invoices, returns, and ledgers, and file a detailed written reply addressing each ground raised. Unresponded notices can result in an ex-parte demand order and recovery proceedings.

An ASMT-10 is a scrutiny notice issued under Section 61 of the CGST Act, 2017, asking you to explain discrepancies found in your GST returns. You are required to respond within 30 days of the date of service of the notice, or within such extended period as the officer may allow. A prompt, well-documented reply is critical — failure to respond satisfactorily can lead to the issuance of a formal Show Cause Notice (DRC-01) and tax demand.

As per Section 16 of the CGST Act read with Rule 36(4), Input Tax Credit (ITC) is available only to the extent reflected in your GSTR-2B. If your supplier has not filed their GSTR-1, the invoice will not appear in your GSTR-2B and the ITC will not be available — even if you have a valid tax invoice and have made payment. However, several High Courts have provided relief in cases where the taxpayer has genuinely paid tax and the non-filing is attributable to the supplier. Each case must be evaluated on its specific facts and supporting documentation.