Whether you are registering for GST for the first time, dealing with an ITC mismatch notice, responding to an ASMT-10 scrutiny notice, facing a departmental audit under ADT-01, or fighting a demand order before the GST Appellate Authority — you are in the right place.
Karnani and Co. is a Chartered Accountant firm in Jaipur providing complete GST services to businesses across Rajasthan and India. From routine GSTR-1 and GSTR-3B filing to complex GST litigation before the Appellate Authority and High Court, our team handles every aspect of GST with accuracy and accountability.
Use the sections below to find exactly what you need.
GST Registration
Every business whose turnover crosses the prescribed threshold — Rs. 40 lakhs for goods and Rs. 20 lakhs for services in most states — is required to register under GST. Certain businesses must register regardless of turnover, including e-commerce sellers, inter-state suppliers, and businesses making taxable supplies on behalf of others.
Getting your GST registration right from the start matters. The business category, the HSN or SAC codes selected, and the type of registration — regular, composition, or casual taxable person — all affect your compliance obligations going forward.
We assist with:
New GST registration for businesses, professionals, and startups across all sectors.
Amendment of existing GST registration where business details, address, additional place of business, or authorised signatory have changed.
Voluntary GST registration for businesses below the threshold who want to claim input tax credit on purchases.
GST registration for e-commerce sellers on Amazon, Flipkart, Meesho, and other platforms who must register regardless of turnover.
Cancellation and revocation of GST registration where a business has closed, or registration was suspended or cancelled by the department.
Who this is for: New businesses needing GST registration, existing businesses needing amendments or revocation, and e-commerce sellers requiring mandatory registration.
CA for GST Registration in Jaipur
GST Return Filing
GST compliance is an ongoing monthly and annual obligation. A missed return, a mismatch between GSTR-1 and GSTR-3B, or an incorrectly claimed ITC can result in ASMT-10 notices, interest, and late fees that accumulate quickly.
We handle the complete return filing cycle for our clients:
GSTR-1 — monthly or quarterly outward supply statement. Every invoice raised must be correctly reported here. Errors in GSTR-1 directly affect your buyer’s ability to claim input tax credit and can trigger ITC mismatch notices in their hands.
GSTR-3B — monthly summary return with tax payment. The tax liability computed here must be reconciled with GSTR-1 before filing. Differences between GSTR-1 and GSTR-3B are one of the most common triggers for GST show cause notices.
GSTR-9 — annual return consolidating all monthly returns filed during the year. Must reconcile with books of accounts and audited financials. Errors here are commonly picked up during GST departmental audit proceedings.
GSTR-9C — reconciliation statement and certification required for businesses with turnover above Rs. 5 crore. Signed and certified by a CA after audit of the financial statements.
GSTR-2B reconciliation — matching your purchase register against the ITC available in GSTR-2B before claiming credit in GSTR-3B. This step is critical since the department now issues ASMT-10 notices for ITC claimed beyond what is available in GSTR-2B.
LUT filing — businesses exporting goods or services or making zero-rated supplies must file a Letter of Undertaking at the start of each financial year to supply without payment of IGST. Failure to file LUT on time means the exporter must pay IGST first and then claim a refund.
Who this is for: All GST-registered businesses needing accurate and timely monthly, quarterly, and annual return filing.
GST Show Cause Notice and ASMT-10 Reply
Receiving a GST show cause notice does not automatically mean you have done something wrong. Many notices are system-generated on the basis of return mismatches, GSTR-2B differences, or e-way bill discrepancies. However every notice requires a timely, documented, and well-reasoned response. Sending a hurried or incomplete reply — or ignoring the notice — can lead to an ex-parte demand order, ITC reversal, and penalty proceedings that are much harder to contest at a later stage.
The most common GST notices our clients bring to us:
ASMT-10 scrutiny notice — issued when the GST officer finds discrepancies in your returns, typically ITC claimed in GSTR-3B exceeding GSTR-2B availability, differences between GSTR-1 and GSTR-3B, or turnover mismatch with e-way bill data. Must be replied to within 30 days through ASMT-11 on the GST portal.
DRC-01 show cause notice — a formal show cause notice proposing demand of tax, interest, and penalty. This is the most serious GST notice and requires a detailed reply backed by reconciliation statements, ledgers, and legal submissions before the personal hearing.
DRC-01A pre-notice communication — an intimation issued before a formal DRC-01, giving the taxpayer an opportunity to pay the short-paid tax voluntarily and avoid penalty. Must be carefully evaluated before deciding whether to pay or contest.
REG-03 notice during registration — a query raised by the GST officer during the registration application process asking for additional documents or clarification. Delayed response leads to rejection of registration.
REG-17 show cause notice for cancellation — issued when the department proposes to cancel your GST registration for non-filing of returns or non-compliance. Must be replied to within 7 days through REG-18.
We review the notice, identify the exact allegation, prepare a reconciliation of the figures the department has relied on, and draft a structured reply addressing each point with supporting documents. Where the department’s position is factually incorrect or legally unsustainable, we challenge it clearly and on record.
Who this is for: Businesses and traders who have received any GST show cause notice, ASMT-10 scrutiny notice, or DRC-01 demand notice and need a professional, documented response.
Reply to GST Show Cause Notice
GST Departmental Audit – ADT-01
A GST departmental audit under Section 65 of the CGST Act is conducted by a GST officer at your place of business. When the department issues an ADT-01 notice, it is signalling that it intends to examine your books of accounts, returns, invoices, e-way bills, and ITC records for one or more financial years in detail.
Many businesses are not adequately prepared when an ADT-01 notice arrives. The audit typically covers:
Reconciliation of turnover as per books versus turnover declared in GST returns.
Input tax credit claimed versus ITC available in GSTR-2B and eligible under the GST Act.
Tax rate classification — whether the correct GST rate has been applied to goods and services supplied.
Reverse charge mechanism compliance — whether RCM liability on applicable transactions has been correctly computed and paid.
E-way bill compliance — whether e-way bills were generated for all applicable movements of goods.
The audit can result in a demand notice if the officer identifies short payment of tax, excess ITC claimed, or non-compliance. Having a CA present during the audit proceedings, who can respond to queries on the spot and ensure records are presented correctly, significantly reduces the risk of an adverse audit finding.
We assist with ADT-01 audit preparation, compilation of records, reconciliation statements, representation during the audit proceedings, and drafting replies to audit observations before the final order is issued.
Who this is for: Businesses that have received an ADT-01 departmental audit notice and need professional support in preparing for and representing during the audit.
GST Appeals and Litigation
If you have received a demand order under GST that you believe is incorrect — whether arising from an ASMT-10 scrutiny proceeding, a DRC-01 show cause notice, or a departmental audit — you have the right to appeal before the GST Appellate Authority. If the appeal is not decided in your favour, you can approach the GST Appellate Tribunal or the High Court.
GST litigation requires a different level of preparation than a notice reply. A strong appeal submission must address the demand order point by point, cite relevant GST Council clarifications, advance rulings, and High Court judgements that support your position, and compile all reconciliation statements and documentary evidence in a structured manner.
Our GST litigation team has handled matters involving:
ITC denial on the ground of supplier non-compliance — where input tax credit has been denied because the supplier failed to file returns or pay tax, despite the buyer having paid the supplier and having a valid tax invoice.
ITC reversal demands under Rule 86B — where the department has restricted use of electronic credit ledger for payment of output tax liability.
Demands arising from GSTR-1 versus GSTR-3B mismatches — where the department has raised a demand for the difference without considering subsequent amendments and corrections.
Demands from departmental audit — where the audit officer has raised additions on the basis of a different interpretation of GST rate classification or ITC eligibility.
Pre-deposit for GST appeal is 10% of the disputed tax amount at the Appellate Authority level. We advise on the pre-deposit obligation and whether a stay application is appropriate in the specific facts of the case.
Who this is for: Businesses that have received a GST demand order and want to challenge it before the Appellate Authority, GST Appellate Tribunal, or High Court.
GST Appeals and Litigation
GST Appeal Rejected What Next?
Refund of Pre-Deposit for Appeal under GST
ITC Mismatch and Reconciliation
Input tax credit is one of the most valuable benefits of the GST system — and one of the most contested areas. The department has significantly tightened ITC scrutiny since 2022. Businesses are now routinely receiving ASMT-10 notices for ITC claimed in GSTR-3B that does not appear in GSTR-2B, or for ITC from suppliers who have not filed their own GSTR-1.
Common ITC issues our clients face:
GSTR-2B mismatch — ITC claimed in GSTR-3B exceeds what is available in GSTR-2B because the supplier filed GSTR-1 late, filed with errors, or did not file at all.
Blocked credit under Section 17(5) — ITC claimed on items that are specifically blocked under GST — such as motor vehicles, food and beverages, construction services, and club memberships — leading to reversal demands.
ITC reversal for non-payment to supplier within 180 days — where the buyer has not paid the supplier within 180 days of the invoice date, the ITC must be reversed and re-claimed only upon actual payment.
ITC on exempt supplies — where a business makes both taxable and exempt supplies, ITC attributable to exempt supplies must be reversed in proportion under Rule 42 and 43.
Transitional credit issues — ITC carried forward from the pre-GST regime that the department is questioning or which has not been correctly computed.
We conduct a comprehensive reconciliation of your purchase register, GSTR-2B, GSTR-3B, and supplier payment records, identify the exact mismatch, and advise on the most defensible position before replying to the notice or making voluntary corrections.
Who this is for: Businesses that have received ITC mismatch notices, are facing ITC reversal demands, or want a proactive reconciliation before a notice arrives.
Why Clients Choose Karnani and Co.
Karnani and Co. was established in 1989 and is registered with the Institute of Chartered Accountants of India under firm registration number 005398C. The firm has four partners and handles GST compliance, advisory, and litigation for businesses across Jaipur, Rajasthan, and India.
Partner-led work: your GST matter is reviewed and handled by a qualified CA, not passed to a junior or executive without supervision.
Litigation experience: we have drafted replies to ASMT-10 notices, DRC-01 show cause notices, and appeal submissions before the GST Appellate Authority. We are comfortable with complex ITC disputes, departmental audit proceedings, and rate classification matters.
Reconciliation-first approach: before drafting any reply to a GST notice, we reconcile the figures the department is relying on with your actual returns and books. A reply based on incorrect or unreconciled figures makes matters worse, not better.
Transparent communication: you are told what the notice means, what the options are, and what the risks of each option are — before any decision is taken.
Remote service capability: clients across Rajasthan and India work with us entirely over WhatsApp, email, and video call. GST portal access is managed securely. You do not need to visit our Jaipur office unless you prefer to.
Frequently Asked Questions
I received an ASMT-10 notice. What should I do first?
Do not reply immediately. First read the notice carefully to understand exactly what discrepancy the department is alleging and for which tax period. Then pull your GSTR-1, GSTR-3B, GSTR-2B, and purchase register for that period and reconcile the figures. Only after you understand the exact mismatch should you draft a reply. Contact us for a notice review before sending anything to the department.
What is the time limit for replying to an ASMT-10 notice?
The taxpayer must file a reply in Form ASMT-11 on the GST portal within 30 days of receiving the ASMT-10 notice. If you miss this deadline, the officer can proceed to issue a demand order without considering your position.
Can ITC be claimed even if my supplier has not filed GSTR-1?
This is one of the most contested issues in GST currently. The department’s position is that ITC can only be claimed to the extent available in GSTR-2B. If the supplier has not filed GSTR-1, the ITC will not appear in your GSTR-2B and the department may deny the credit. However several High Courts have held that ITC cannot be denied to a bonafide buyer solely because the supplier defaulted, provided the buyer has a valid tax invoice and proof of payment. This is an area where proper legal advice and documentation significantly affects the outcome.
What is the pre-deposit required for filing a GST appeal?
For an appeal before the GST Appellate Authority, a pre-deposit of 10% of the disputed tax amount is required at the time of filing. The remaining disputed tax, interest, and penalty are stayed pending the appeal. This pre-deposit is refundable if the appeal is decided in your favour.
What is the difference between a GST show cause notice and a demand order?
A show cause notice — typically DRC-01 — is a proposal to raise a demand. It gives you an opportunity to respond and attend a personal hearing before the demand is confirmed. A demand order is issued after considering your reply and hearing. Once a demand order is passed, your options are to pay the demand, appeal before the Appellate Authority with a 10% pre-deposit, or approach the High Court in appropriate cases.
Can a GST departmental audit be conducted for past years?
Yes. Under Section 65 of the CGST Act, a GST departmental audit can be conducted for any financial year within 5 years of the due date of the annual return for that year. So practically, audits can cover the last 5 financial years.
We are an exporter. Do we need to file LUT every year?
Yes. A fresh LUT must be filed at the beginning of each financial year before making any zero-rated supply without payment of IGST. An LUT filed for one year is not valid for the next. Failure to file LUT means you must pay IGST on exports and then claim a refund, which involves a longer process.
Our GST registration was cancelled. Can it be restored?
Yes, subject to conditions. If the registration was cancelled on your application, it can be revoked only in limited circumstances. If it was cancelled by the department for non-compliance, you can file a revocation application within 90 days of the cancellation order, subject to filing all pending returns and paying all outstanding tax, interest, and late fees.
Speak With Our GST Team
For any GST matter — whether a new registration, a pending return, an ASMT-10 notice, a departmental audit, or a demand order appeal — contact us for a confidential discussion.
Phone: +91 9829063960 / +91 9829010172
WhatsApp: +91 9829010172
Email: amit@karnanica.com
Our office is in Jaipur, Rajasthan. We serve businesses across India over WhatsApp, email, and video call.