GST Mismatch Notice Reply Format (2026 Update)

Last Updated on February 5, 2026

Any company, whether small, mid-sized, or large, that receives a GST notice for a discrepancy could find it unsettling. Normally sent when the GST Department discovers any differences between the taxpayer’s returns, such between GSTR-1 and GSTR-3B or any Input Tax Credit (ITC) mismatches as demonstrated in GSTR-2A or GSTR-2B, a GST notification for a mismatch would be sent.

Mismatches could result from human errors, vendor delays in filing, turnover errors, or different tax payment timings.

A notice initially might be upsetting, but it doesn’t always show any wrongdoing or deceit.

Among other systematic or technical ones, mismatches might come from a number of sources. One must respond to the notice right away, nevertheless, and completely reconcile to avoid any legal problems, interest or penalties.

One must understand the source of the notice and take suitable steps in line with the GST Act of 2017 to ensure corporate integrity and compliance.

What is a GST Notice?

Under the Central Goods and Services Tax (CGST) Act, 2017, the GST Department sends a registered taxpayer an official notification. The GST Department alerts the taxpayer when it finds inconsistencies, defaults, or tax obligations relating to GST returns, payments, and other legal obligations.

A GST notice may be issued for a number of reasons, including variances in returns (GSTR-1 versus GSTR-3B), excess or ineligible input tax credit, short tax payment, non-submission of returns, or inaccurate refund requests. Notices are usually issued under Sections 61 (Scrutiny of Returns), 73 (non-fraud cases), and 74 (fraud or misrepresentation of facts).

The notice outlines the conflict, tax period, and taxpayer-to-be actions. It is absolutely necessary to reply to the notice in the right way and within the prescribed period with the necessary paperwork to avoid GST penalties, interest, and other legal consequences.

Reasons For Mismatch Under GST

Mismatch under GST may be said to be a variance between the data entered in GSTR-1, GSTR-3B, and GSTR-2A/2B, and also between the books and GST returns. Procedural mistakes, rather than deliberate default, cause most of the mismatches. Under the CGST Act, 2017, regular matching and keeping adequate paperwork can help avoid fines and warnings.

1. Errors in data input or clerical work:

• Reporting of the invoice’s value, GST, and GSTIN incorrectly.
• Typographical mistakes when submitting GSTR-1 or GSTR-3B.

2. Reporting Timing Variations: GSTR-1 registered invoices but paid in GSTR-3B. Subsequent return changes resulted in a short-term discrepancy.

3. Supplier non-filing or late filing: Since the vendor hasn’t filed GSTR-1, the ITC is not shown on GSTR-2A/2B.

4. Mismatch for a certain month resulted from the late return filed by the supplier:

• ITC said in GSTR-3B without verifying GSTR-2A/2B.
• Qualified claim for ineligible ITC (Blocked Credits under Section 17(5))

5. Incorrectly mirrored adjustments:

• Notes on credit/debit were incorrectly updated.
• Changes in GSTR-1 not corrected in GSTR-3B.

6. Errors associated with the Reverse Charge Mechanism (RCM):

• Non-payment of GST under RCM and claiming ITC.
• Errors in the return reporting of RCM obligation.

7. How do GST returns and books differ?

• Financial statement turnover is unrelated to GST filings.
• Incorrect reporting of exempted, nil-rated, or zero-rated items.

8. Supply location errors:

• Incorrect classification of intra-state and interstate goods (CGST/SGST vs. IGST).
• Faulty reporting might affect one’s tax obligation.

9. Invoices missing or copied:

• Two times the same invoice has been reported.
• In GSTR-1, invoices are absent even though they can be found in the books.

10. Technical issues/portal issues:

• Errors faced during invoice uploads.
• System glitches prevented correct data saving.

11. Conflict arising from reconciliation issues:

• Monthly reconciliation of GSTR-1, GSTR-3B, and GSTR-2A/2B is inadequate.
• Annual reconciliation errors were found during the GST audit.

How to Draft a Reply to a GST Mismatch Notice?

Written simply, objectively, and appropriately, the reply to the GST notice of mismatch should include references to the most significant clauses of the CGST Act, 2017. Preventing legal consequences and fines depends on precise documentation and quick filing on the GST portal.

1. Go through the advertisement thoroughly

• Verify that the notice is directed to the appropriate department (Scrutiny of Returns, Non-fraudulent cases or Fraudulent cases).
• Examine the tax period, amount, and kind of disagreement (GSTR-1 versus GSTR-3B; ITC mismatch with GSTR-2A/2B; turnover changes, etc.).

2. In your response, give essential specifics

• Include the date of notice, legal name, GSTIN, and reference number.
• Give the appropriate tax year.
• Respond to the appropriate officer’s reaction

3. Determine the kind of mismatch.

• Tell the notice’s mismatch briefly.
• Examples are claims of excess ITC, payment of reduced taxes, and variations in outward supplies.

4. Supply explanations and rationale

• Explain the causes of the mismatch (clerical error, time differences, consecutive return changes, supplier non-filing, etc.).
• Offer fair reasons grounded in evidence.

5. Include Reconciliation Statement

• Offer a thorough reconciliation of GSTR-1, GSTR-3B, and GSTR-2A/2B.
• Demonstrate how the variances were brought about and fixed.

6. Mention the corrective actions taken

• State if any changes were made in future returns.
• Verify that the applicable taxes and interest under Section 50 have been paid through DRC-03.

7. Add supporting documents

Submit copies of returns, bills, payment challans, reconciliation process, and DRC-03 (if paid).

8. Request the closure of proceedings

Request closure of proceedings after evaluating the explanation offered.

9. Maintain a professional tone

• Avoid using emotional expressions.
• Ensure that the response is brief, organised, and in line with legal requirements.

Sample Format of GST Mismatch Notice Reply

To

The Proper Officer

[Jurisdiction / Range / Division]

[Address]

Subject: Response to Notice for Mismatch under Section 61 / 73 / 74 of the CGST Act, 2017

Reference: GSTIN: ___ | Notice No.: ___ | Date: ___ | Tax Period: ___

Respected Sir/Madam,

In reference to the notice mentioned above, issued under Section [61/73/74] of the Central Goods and Services Tax Act, 2017, concerning the mismatch between GSTR-1, GSTR-3B, and/or GSTR-2A/2B for the tax period [________], we hereby submit our response as follows:

1. Nature of Mismatch: The purported discrepancy pertains to [difference in outward supplies / excess ITC claimed / short payment of tax/mismatch in turnover].
2. Reason for Discrepancy: The variance has occurred due to [clerical error/timing difference in reporting/amendments made in subsequent returns/supplier’s delayed filing/reconciliation differences]. This was unintentional and arose from bona fide reasons.
3. Reconciliation Statement: Enclosed herewith (Annexure A) is a comprehensive reconciliation of turnover and input tax credit between GSTR-1, GSTR-3B, and GSTR-2A/2B, which clearly elucidates the variance.
4. Corrective Action Taken: The amendments have been given effect to in the subsequent returns as required. The differential tax of ₹[_____] and interest under Section 50 have been paid/settled through DRC-03 (copy attached as Annexure B), if applicable.
5. Compliance Submission: We hereby declare that there is no plan to avoid taxation. Any tax obligation has been paid according to the terms of the CGST Act, 2017; the distinctions have been settled.

Considering the aforementioned facts and the attached papers, we humbly suggest that your august office may gently call back the proceedings started under the aforementioned notice.

Thank you.

Yours sincerely,

The authorised signatory for [Legal Name of Business] is ____

Designation: ___

Date: ___

Place: ___

Enclosures:

1. Annexure A: Reconciliation Statement.
2. Annexure B: Copy of DRC-03 (if applicable).

Frequently Asked Questions (FAQ)

1. What is a GST mismatch notice?

This notice is sent by the GST Department in case of differences in GSTR-1, GSTR-3B, GSTR-2A/2B, and the books of accounts.

2. What could be the reason for receiving a mismatch notice?

The reasons may include high ITC claims, low tax payments, suppliers’ failure to file returns, errors, and differences in turnover.

3. Under which sections are mismatch notices typically issued?

Under Sections 61 (Scrutiny), 73 (Non-fraud cases), and 74 (Fraud or intentional misrepresentation) of the CGST Act of 2017, the notices are released.

4. How should one reply to a GST mismatch notice?

The GST site should be used to submit a written answer together with reconciliation papers and supporting papers. Should it be necessary, the tax payment difference, together with interest, should be made through DRC-03.

5. What happens if I ignore the notice?

Demand orders, fines, interest, and other legal actions under GST rules could all have implications.

Why Choose Kanakkupillai For Your GST Notices?

GST notices can be a source of stress and confusion, but with Kanakkupillai, you do not have to go through them alone. Under the GST Act, 2017, our tax experts thoroughly examine your notice, identify the issue, and provide a strong, precise response. From reconciliation to answering inquiries and, if necessary, legal counsel on your behalf with the tax authorities, we offer complete support.

By offering expert guidance, clarity, and a rapid resolution procedure, we aim to minimise penalties and prevent future issues. Even after the issue has been addressed, we offer post-service help to guarantee ongoing compliance. Kanakkupillai seeks to offer reliable, efficient, and stress-free GST notice management solutions.

Kanakkupillai – Your Trusted Partner For GST Notices Resolution

Dealing with GST notices swiftly and confidently requires your one-stop solution, KANAKKUPILLAI. Do not allow variations in tax, penalties, or legal language to interfere with your judgment. With complete support, our experts will step in, assess your case, create correct plans, and lead you through the whole procedure. For you, we will streamline GST compliance and make it easy and free of tension.

Take control of your GST issues today – with KANAKKUPILLAI, start your journey today!