ASMT-10 Notice: What It Means and How to Reply

An ASMT-10 notice means a GST officer has scrutinised your returns under section 61 of the CGST Act and rule 99(1) of the CGST Rules, found discrepancies, and is asking you to explain them. It is an explanation stage, not a demand. You reply in Form ASMT-11 within the time the notice gives, which rule 99(1) caps at 30 days from service unless the officer allows more: accept a discrepancy and pay what arises from it, or explain why it is not one. If the officer accepts the reply, the matter is closed by an intimation in ASMT-12.

Sources checked: 29 October 2026

Facts checked on 29 October 2026 against section 61 of the CGST Act and rule 99 of the CGST Rules on the CBIC tax information portal; rule 142 and sections 73 and 74A as read on 21, 24 and 29 October 2026.

This is general information, not legal advice. The paragraphs and dates in your own notice decide what your reply must cover.

Key facts

Point	What applies	Where it comes from
What it is	Notice of discrepancies found on scrutiny of returns	Section 61(1); rule 99(1)
What it asks	Your explanation; where possible it quantifies tax, interest and other amounts	Rule 99(1)
Time to reply	As stated, not more than 30 days from service, or a further period the officer permits	Rule 99(1); section 61(3)
Reply form	ASMT-11: accept and pay, or explain	Rule 99(2)
If accepted	ASMT-12; no further action in that regard	Rule 99(3); section 61(2)
If not explained or not corrected	Audit (s.65), special audit (s.66), inspection or search (s.67), or demand (s.73, 74 or 74A)	Section 61(3)

What does an ASMT-10 notice mean?

Section 61(1) lets the proper officer scrutinise a return and related particulars "to verify the correctness of the return" and tell you of any discrepancies. Rule 99(1) says that when a return is selected for scrutiny and a discrepancy is found, the officer issues ASMT-10, informs you of the discrepancy, seeks your explanation and, where possible, quantifies the tax, interest and other amounts payable.

The notice states each discrepancy the officer found, for example a difference between figures in two of your returns. It does not decide anything: it is the department asking a question before it decides whether to act.

How long do I have to reply?

The time stated in the notice, which cannot exceed 30 days from the date of service, or such further period as the officer permits (rule 99(1)). Section 61(3) uses the same words. In practice:

1. Note the date the notice was served on the portal.
2. If reconciliations or supplier confirmations will take longer, ask the officer in writing for more time before the period ends, and keep a copy.
3. File within the period. Our notice deadline calculator counts the days from the service date.

How do I reply in ASMT-11?

Rule 99(2) gives two routes, and you can use both in one reply:

• Accept and pay. Accept a discrepancy, pay the tax, interest and any other amount arising from it, and say so in ASMT-11. A payment made before any show cause notice is reported in Form DRC-03 (rule 142(2)).
• Explain. Give the reason there is no discrepancy, with evidence.

A reply that answers the notice point by point usually has:

1. A short opening that identifies the notice, the period and the date of service.
2. One section per discrepancy, in the same order and numbering as the notice.
3. For each: whether you accept it, and either the payment details or the explanation.
4. Reconciliations as annexures: GSTR-1 against GSTR-3B, GSTR-3B against GSTR-2B, and both against the books, with the annual return where the year is closed. Attach the working, not just the result.
5. Supporting documents: credit notes, amendments in later returns, reverse-charge payments, invoices and supplier confirmations.

This is an outline, not a draft. A discrepancy can disappear once a credit note, an amendment made in a later month or a reverse-charge payment is shown, so the reconciliation is usually the heart of the reply.

What does ASMT-12 mean?

ASMT-12 is the officer's intimation that your explanation, or the information you gave about payment, has been found acceptable (rule 99(3)). Section 61(2) then says you "shall be informed accordingly and no further action shall be taken in this regard". When it arrives, check that it covers every paragraph and every tax period in the ASMT-10; our ASMT-12 guide has a short checklist. File the closure with the original notice.

If nothing arrives after a reply, follow up in writing, so that there is a dated record that the reply was filed and is awaiting a decision.

What happens if the explanation is not accepted?

Section 61(3) sets out when the officer may act:

• no satisfactory explanation is given within 30 days of being informed, or the further period allowed; or
• you accepted a discrepancy but did not take the corrective measure in your return for the month in which you accepted it.

The officer may then start "appropriate action", including:

Next step	Provision	Our guide
Audit by the department	Section 65	GST audit under section 65
Special audit	Section 66	same guide
Inspection, search or seizure	Section 67	GST inspection, search and seizure
Demand proceedings	Section 73 or 74 (up to FY 2023-24); section 74A (FY 2024-25 on)	Section 73 show cause notices; section 74A time limits

Before a demand notice, the officer may send a pre-notice intimation in Form DRC-01A (rule 142(1A)); it is optional. Our guide to the DRC-01A intimation explains how to answer it. The demand itself comes as a show cause notice with its summary in Form DRC-01, subject to the time limits of the section that applies.

Is ASMT-10 the same as a show cause notice?

No. A show cause notice under section 73, 74 or 74A proposes a demand of tax, interest and penalty and leads to an order. ASMT-10 only reports discrepancies and asks for an explanation; rule 99(1) asks the officer to quantify the amounts "where possible", but the notice confirms nothing. That is why the reply matters: section 61(2) says an accepted explanation ends the matter, while section 61(3) is the door to an audit, a search or a demand. Treat the reply period as seriously as a show cause notice's, even though the stakes at this stage are lower.

Does paying at the ASMT-10 stage save penalty?

Paying tax and interest on an accepted discrepancy before any show cause notice, and telling the officer in writing, means no notice and no penalty for that amount in a non-fraud case, under section 73(5)-(6) for periods up to FY 2023-24 and section 74A(8)(i) for FY 2024-25 onwards. In a fraud or suppression case under section 74A, the same effect needs a 15% penalty too (section 74A(9)(i)). Whether a discrepancy is worth accepting is a judgment on the facts; our expert team can weigh it with you.

Getting help

Paste or upload your notice into our notice decoder to see which form it is and what it asks; the ASMT-10 guide has the key facts on one page. Our GST audit and litigation support team prepares reconciliations and ASMT-11 replies, and GST notices explained covers the other common forms. To ask our expert team about your notice, book a consultation.