🔑 In one line
Scrutiny notices are up 5-10x this year. ASMT-10 is a question, DRC-01 is a demand — knowing the difference changes how fast you should act.
30 days
Typical reply window
5–10x
Rise in scrutiny notices
18%
Annual interest if unpaid
The three you'll see most
Scrutiny
ASMT-10
Officer spotted a discrepancy — usually GSTR-2B vs GSTR-3B ITC mismatch — and wants an explanation. Reply using Form ASMT-11. This is your best chance to resolve it before it escalates.
Demand
DRC-01
Formal show-cause notice — department believes tax is owed. Reply using Form DRC-06. Carries higher penalties and interest than scrutiny — treat it seriously.
Mismatch alert
DRC-01B / DRC-01C
Usually a GSTR-2B vs GSTR-3B ITC difference flagged automatically. Needs an explanation with a reconciliation statement attached.
Scrutiny vs demand — the real difference
| Notice | What it means | Reply form |
|---|---|---|
| ASMT-10 | Question — explain the discrepancy | ASMT-11 |
| DRC-01 | Demand — department wants payment | DRC-06 |
Common confusions — cleared up
❌ Confusion
ASMT-10 is the same as being fined.
✅ Actual rule
It's scrutiny, not a demand — a chance to explain before anything escalates.
❌ Confusion
Ignoring a notice just delays the problem.
✅ Actual rule
Non-response is often treated as accepting the demand, and can trigger an ex-parte order.
✅ The moment a notice arrives
1
Note the deadline & reference number (ARN) — usually 30 days from service.
2
Reconcile GSTR-3B against GSTR-2B — most ASMT-10s trace back to this exact gap.
3
Keep filing regular returns — don't stop GSTR-1/3B while scrutiny is pending.
4
Bring in a CA for anything mentioning fraud, or a DRC-01 above ₹5 lakh.
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