Got a Notice for GSTR-1 vs GSTR-3B Mismatch — What Now?
GSTZone Desk · Updated 2026
Short answer
Reconcile the two returns first to find the actual reason for the gap, then reply within the given time with your explanation and supporting workings — don’t ignore it, and don’t just pay without checking whether it’s a genuine liability first.
In detail
A GSTR-1 vs GSTR-3B mismatch notice is typically a system-driven scrutiny notice (often under Section 61, using Form ASMT-10) that flags a difference between what you declared as outward supply in GSTR-1 and what you actually paid tax on in GSTR-3B. It is a query, not automatically a confirmed demand.
Genuine, explainable reasons for this gap are extremely common: a sale reported in one month’s GSTR-1 but the tax paid in a different month’s 3B due to a timing slip, an amendment made later that hasn’t yet flowed through, or a straightforward data-entry error on either return.
The response has to be specific, not general — a reconciliation statement showing exactly where each rupee of the difference comes from, backed by invoices and return copies, filed within the deadline given (usually around 30 days). If there IS a genuine shortfall once you reconcile it, paying it voluntarily with interest through Form DRC-03 before the matter escalates is almost always the better path than contesting a real liability.
GSTZone tip
Do the reconciliation yourself before assuming either extreme — that it’s nothing to worry about, or that you definitely owe the full flagged amount. The actual number after reconciliation is very often somewhere in between, or even in your favour if the department’s data is stale.
Related questions
What happens if I don’t reply to the notice at all?+
Non-response typically leads to escalation — the officer can proceed to a formal demand under Section 73 or 74 based on the best information available, which is a much worse position than replying with your own reconciliation.
Can I get professional help to draft the reply?+
Yes, and for anything beyond a simple, obvious timing difference, it’s worth having a GST professional review the reconciliation and draft the reply — a poorly worded response to a genuine mismatch can invite deeper scrutiny.
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