GST notice reply charges: what CAs charge (₹3,000–15,000) vs handling it yourself
Replying to a GST notice costs ₹3,000–₹15,000 through a professional — and the single biggest driver of that fee is not the notice, it's the state of your data.
Nobody budgets for a notice. When one lands, the panic-Google is "gst notice reply charges" — so here are the real numbers, and the honest breakdown of when to pay them.
What professionals actually charge
| Situation | Typical fee | |---|---| | Simple system notice (DRC-01C, ASMT-10), reconciliation already exists | ₹3,000–₹7,000 | | Same notice, but CA must rebuild your matching from raw bills | ₹7,000–₹12,000 | | Section 73/74 show-cause reply, moderate demand | ₹10,000–₹15,000+ | | Appeals / hearings / large demands | ₹25,000 to lakhs, stage-wise |
(Market ranges for small businesses; metros and complex cases run higher.)
Read the second row again. The extra ₹4,000–₹5,000 isn't for tax wisdom — it's data archaeology: digging through a year of purchase bills to build the invoice-wise working that the reply needs. That's work you can eliminate.
What a notice reply actually contains
For the notices small businesses actually get — DRC-01C (ITC gap over 20%/₹25 lakh) and ASMT-10 (scrutiny discrepancies) — the reply is:
- The working: invoice-level reconciliation showing where the difference comes from.
- The reasons: picked from standard categories — earlier months' ITC now claimed, import IGST (not in 2B), RCM credit, credit-note timing.
- The evidence: 2B extracts, bills of entry, payment proofs.
- The form: Part B online, within 7 days for DRC-01C.
No courtroom drama — a spreadsheet with a cover letter, filed on the portal.
DIY, CA, or hybrid: an honest decision table
- Reply yourself when: the notice is system-generated, the gap has an explanation you can name, and your monthly reconciliation exists. Your cost: an afternoon.
- Hybrid (best value for most): you produce the reconciliation working; the CA reviews and files. You pay review money (₹1,500–₹3,000 typically), not archaeology money.
- Full CA when: it's a Section 73/74 demand, the amount is serious, fraud is alleged, or your books genuinely are the shoebox. Don't economise here.
The cheapest reply is the one you never write
A DRC-01C exists only because claimed ITC drifted more than 20%/₹25 lakh from GSTR-2B — a drift that monthly 2B reconciliation catches before filing. Businesses that reconcile monthly simply don't get these notices; their CA fee for notice replies is ₹0 a year.
GST Sathe keeps that reconciliation running automatically, watches the DRC-01C thresholds before every filing, and — if a notice ever arrives — generates the invoice-level working and a draft reply, so the professional you pay reviews instead of excavates. See the notice guardian →
Sources
- Rule 88D / Form DRC-01C (7-day window); Section 61 / ASMT-10; Sections 73-74, CGST Act
- Fee ranges: prevailing small-business market rates across Indian metros and tier-2 cities (indicative, not a rate card)
नेहमी विचारले जाणारे प्रश्न
How much does a CA charge for a DRC-01C reply?+
Commonly ₹3,000–₹7,000 for a straightforward Part B reply where the reconciliation working exists, more if the CA must first rebuild your purchase-vs-2B matching from raw bills — data cleanup is what you're really paying for.
Can I reply to a GST notice without a CA?+
Legally yes — replies are filed on the portal from your own login. For system-generated mismatch notices with a clear explanation (timing, imports, RCM), a self-prepared reply with invoice-level workings is realistic; for Section 73/74 demands or large amounts, professional help is worth every rupee.
Why do charges vary so much between CAs?+
The fee tracks effort and risk: how messy your data is, the demand amount, the notice type, and your city. A client whose books are already reconciled monthly is quoted the low end; a shoebox of bills gets the high end.
What happens if I just ignore the notice to save the fee?+
The most expensive option of all: DRC-01C non-reply blocks your GSTR-1 in 7 days, and silence converts intimation into Section 73/74 demand proceedings with 18% interest and penalty.
GST Sathe watches notices for you
The DRC-01C 20%/₹25 lakh gap is checked every month before you file — and if a notice ever lands, the reply draft is waiting.