ASMT-10 is a Notice for Scrutiny of Returns issued under Section 61 of the CGST Act. The GST officer issues this notice when their system detects discrepancies in your filed returns — typically a mismatch between GSTR-1 and GSTR-3B, or between ITC claimed in GSTR-3B and ITC available in GSTR-2B. It is not a demand notice — it is a query seeking your explanation.
Common Triggers — Why You May Have Received This
Output tax in GSTR-3B is less than what GSTR-1 declares (you declared more sales but paid less tax)
ITC claimed in GSTR-3B exceeds what appears in your GSTR-2B (you claimed more than suppliers reported)
Turnover declared in GSTR-1 differs significantly from GSTR-3B
Nil GSTR-3B filed when GSTR-1 shows significant sales
E-way bill data significantly higher than GSTR-1 turnover
Significant variation in ITC utilisation pattern across months
How to Respond — Step by Step
Response form: ASMT-11 | Deadline: 30 days
1
Download and read the notice carefully
Login to gst.gov.in → Services → Notices and Orders → download the ASMT-10 PDF. Note: the specific discrepancy cited, the period involved, and the response deadline.
2
Prepare your reconciliation
Match GSTR-1 vs GSTR-3B vs books of accounts for the flagged period. Document why any difference exists — amendments, timing differences, credit notes, advances, or data entry errors.
3
Gather supporting documents
Collect invoices, bank statements, GSTR-2B printout, purchase register, debit/credit notes, and any correspondence explaining the discrepancy.
4
File ASMT-11 with explanation
Login to portal → Services → Notices and Orders → find the ASMT-10 → click Reply → file Form ASMT-11. Write a clear, factual explanation. Attach all supporting documents as PDF.
5
Pay shortfall if genuine (via DRC-03)
If the discrepancy is genuine and tax is short-paid, pay the difference voluntarily via DRC-03 before or alongside the ASMT-11 response. This reduces penalty exposure.
6
Track the officer's order
After your ASMT-11, the officer issues ASMT-12 (acceptance of your explanation) or escalates to DRC-01 (demand notice). Monitor the portal for the next communication.
Penalty Implications
⚠️ ASMT-10 itself does not impose a penalty. If the officer is not satisfied with your ASMT-11 response, they may issue DRC-01 (Show Cause Notice) leading to a demand under Section 73 or 74. Voluntary payment of any genuine shortfall via DRC-03 alongside ASMT-11 significantly reduces penalty risk.
Expert Tips
Never ignore ASMT-10 — an unanswered notice leads to an ex-parte assessment (ASMT-15) where the officer decides based on available data.
Respond within 30 days even if you need more time — file a brief ASMT-11 acknowledging receipt and requesting an extension if needed.
If the discrepancy is due to a valid reason (e.g., credit note issued in a later month), explain this clearly with the invoice number and the period in which GSTR-1 was amended.
Proactive payment via DRC-03 before the officer escalates to DRC-01 typically avoids penalty entirely under Section 73.
Calculate your penalty or interest if you missed a deadline:
Section 61 requires a response within 30 days of receiving the ASMT-10. The officer may grant an extension if requested with valid reasons.
The officer issues Form ASMT-12, accepting your explanation and closing the scrutiny. No further action is required for that period on the flagged discrepancy.
Yes. ASMT-10 is the first step — a query. If the explanation is unsatisfactory, the officer may issue DRC-01 (Show Cause Notice) for the same discrepancy, proposing a specific tax demand.
