GST Compliance & Notices
By GST & Tax Hub | Updated: September 2025
Goods and Services Tax (GST) has simplified indirect taxation in India, but it has also introduced strict compliance requirements for businesses. Missing a deadline or filing incorrect details can result in penalties and notices from the GST department.
This guide explains key GST compliances, common types of GST notices, and how to respond to them – so your business stays compliant in 2025.
📋 Key GST Compliances Every Business Must Follow
| Compliance | What It Means | Frequency |
|---|---|---|
| GST Registration | Mandatory for businesses with turnover above ₹40 lakh (goods) / ₹20 lakh (services). | One-time |
| GST Return Filing | Filing GSTR-1 (sales), GSTR-3B (summary return), GSTR-9 (annual return). | Monthly/Quarterly/Annually |
| Payment of GST | Pay tax via challan on the GST portal. | Monthly |
| E-Way Bill Generation | Required for transport of goods worth over ₹50,000. | Per transaction |
| E-Invoicing | Mandatory for businesses with turnover above ₹2 crore (2025 rule). | Every B2B invoice |
| ITC Reconciliation | Match your purchase data (GSTR-2B) with books before claiming Input Tax Credit. | Monthly |
📢 Common Types of GST Notices (2025)
Understanding the type of notice you receive is crucial. Here are the most common GST notices and what they mean:
1️⃣ Show Cause Notice (SCN)
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Why You Get It: Suspected short payment of GST, wrong ITC claim, or non-compliance.
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Action to Take: Respond within the specified timeline with supporting documents.
2️⃣ Notice for Non-Filing of Returns (GSTR-3A)
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Why You Get It: Failure to file returns (GSTR-1, GSTR-3B) within due date.
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Action to Take: File pending returns immediately, pay late fees and interest.
3️⃣ Mismatch Notice (GSTR-1 vs GSTR-3B)
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Why You Get It: Sales reported in GSTR-1 and tax paid in GSTR-3B don’t match.
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Action to Take: Reconcile data and make corrections through amendment returns.
4️⃣ ITC Mismatch / Excess Claim Notice (GSTR-2B)
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Why You Get It: Claimed ITC is higher than the ITC reflected in GSTR-2B.
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Action to Take: Verify supplier compliance, reverse excess ITC if required.
5️⃣ Audit / Assessment Notice
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Why You Get It: Department initiates an audit or scrutiny to verify your records.
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Action to Take: Maintain proper books for at least 6 years and cooperate with the officer.
🛡️ How to Stay 100% GST Compliant in 2025
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✅ File all returns on time – Use reminders or automated software.
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✅ Reconcile books monthly with GSTR-2B and GSTR-3B before filing.
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✅ Keep all invoices & records properly organized and stored for 6 years.
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✅ Generate e-way bills and e-invoices wherever mandatory.
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✅ Respond to notices on time – Delayed response can lead to penalties or demand orders.
🎯 Conclusion
Staying GST compliant is not optional – it’s a must for every business. The government has enhanced its monitoring system in 2025, which means non-compliance is easily detected.
By filing returns on time, reconciling ITC properly, and responding to notices without delay, you can avoid penalties and run your business smoothly.
If you ever receive a GST notice, don’t panic – understand the reason, consult a tax professional if needed, and reply within the deadline.