A GST show-cause notice (SCN) is not something to set aside for later — the reply window is strict, and a missed or weak reply can lead to an ex-parte order confirming the entire demand. Here is exactly what to do in the first 48 hours.
Hour 1: Read the notice completely, twice
Identify three things immediately: which section it's issued under (Section 73 for non-fraud cases, Section 74 for fraud/suppression allegations — the distinction matters enormously for penalty exposure), the exact reply deadline date, and the specific allegation (classification, valuation, ITC mismatch, non-filing, etc.).
Hours 2–6: Gather the relevant documents
- All GST returns (GSTR-1, GSTR-3B, GSTR-9) for the period in question
- GSTR-2B and your purchase register, if the notice concerns ITC
- Relevant sales invoices, e-way bills, and delivery challans
- Bank statements showing payment trails, if the notice questions a transaction
- Any prior correspondence with the department on the same matter
Day 1–2: Get a professional assessment
Before drafting anything, get a chartered accountant to assess whether the allegation has merit, is a genuine data-entry mismatch, or is a misapplication of the law on the department's part. This assessment determines your entire response strategy — a straightforward clerical correction is handled very differently from a substantive legal dispute over classification or valuation.
What a strong reply includes
| Element | Why it matters |
|---|---|
| Point-by-point rebuttal | Address each allegation individually — a generic denial is treated as no reply at all. |
| Supporting documents as annexures | Every factual claim needs a document behind it — returns, invoices, ledgers. |
| Relevant case law or circulars, if applicable | Strengthens legal arguments on classification or interpretation disputes. |
| Request for personal hearing | Preserves your right to be heard before any adverse order is passed. |
What not to do
- Don't ignore the notice hoping it resolves itself — it won't.
- Don't send an informal, undocumented reply by email outside the proper portal process.
- Don't wait until the last day to start gathering documents — some records (like old e-way bills) take time to retrieve.
If your notice concerns a genuinely disputed legal question — not just a clerical fix — you may be looking at the start of a longer litigation process. See our dedicated page on GST litigation in Chennai for what comes after the reply stage.