GST ASMT-10 explained: discrepancies found in scrutiny of your returns

What ASMT-10 usually points out

Scrutiny compares your returns with each other and with third-party data. The notice lists each discrepancy, usually with a tax amount, for a specific financial year or tax period.

• Outward tax in GSTR-1 higher than tax paid in GSTR-3B
• ITC in GSTR-3B higher than ITC shown in GSTR-2A or 2B
• Turnover in GST returns lower than in e-way bills, TDS or TCS data, or income tax records
• ITC claimed on blocked items or from cancelled suppliers
• Reverse charge liability not paid

Your options

For each point, either explain why there is no shortfall, with documents, or accept it and pay tax with interest through DRC-03, then mention the DRC-03 ARN in the reply. A mix is common: accept small items, contest the rest. The reply goes in ASMT-11 on the portal, ideally with a reconciliation annexure.

Deadline and what follows

Rule 99 gives 30 days from receipt, or a further period the officer permits. If the explanation is accepted, you receive ASMT-12 and the matter closes. If there is no satisfactory reply, the officer may move to audit, special audit, inspection, or a show cause notice under Section 73, 74 or 74A, depending on the period and the allegation.

Mistakes to avoid

• Ignoring the notice because it is not a demand; silence leads to a show cause notice
• Writing a one-line denial without a reconciliation
• Paying through DRC-03 but not mentioning it in ASMT-11
• Missing that the notice relates to an old year with books no longer handy; start collecting records immediately

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.