Got a GST notice as an iron or steel wholesaler on Sembudoss Street? Most of what we see here traces back to one of two things: the new-stock-vs-scrap RCM/TDS split, or an e-way bill discrepancy on a heavy consignment. Call or WhatsApp 70 9232 9232 and we’ll tell you exactly what your notice means and what to do next.
The notices we see most on Sembudoss Street
Scrap RCM not paid, or paid at the wrong rate
Buying metal scrap from an unregistered seller makes you liable for 18% GST under reverse charge, regardless of the seller’s registration status. When this liability is missed — often because it looks like an ordinary unregistered-vendor purchase — the department’s own data-matching flags it, and an ASMT-10 scrutiny notice is the usual first step, followed by a formal DRC-01A if it’s not resolved quickly.
2% TDS under Section 51 not deducted on a registered-to-registered scrap sale
This is a narrower, more specific trigger — and one most general GST filers don’t even know applies to metal scrap specifically. A missed TDS deduction on a registered-to-registered scrap transaction shows up as a discrepancy between what the buyer reported and what the seller expected, and typically surfaces as a mismatch notice months after the transaction, not immediately.
E-way bill value mismatches on heavy consignments
Steel and iron move by weight. A consignment value that doesn’t match the e-way bill’s declared value — even an honest rounding difference on a bulk order — is a common trigger for a scrutiny notice in this trade specifically, more so than in lower-volume retail businesses.
What to do the moment a notice arrives
- Don’t ignore it — every notice type has a fixed reply window, and missing it converts a fixable query into a formal demand.
- Separate the scrap and non-scrap transactions in your own records before responding — this is usually the fastest way to isolate exactly what the department is querying.
- Call 70 9232 9232 with the notice reference number — we’ll identify which of the scenarios above applies and draft the correct reply.
The notice types you’re most likely to see
- ASMT-10 — the first scrutiny notice, usually from an RCM or reconciliation mismatch.
- DRC-01A — a pre-show-cause intimation if the ASMT-10 query isn’t resolved.
- DRC-01 — a formal Show Cause Notice for unresolved demand.
What a reply to an RCM/TDS notice actually needs to contain
A generic denial (“we paid the right amount”) doesn’t hold up on its own. A proper reply needs the specific purchase invoices in question, a clear statement of whether each was new stock or scrap, the registration status of the seller for any scrap purchase, and — where RCM or TDS genuinely applies and wasn’t paid — a calculation of the correct amount plus applicable interest, paid before or alongside the reply. Departments respond far better to a reply that acknowledges a genuine gap and shows it’s being corrected than one that simply disputes the notice without evidence.
If more than one shop on the street has had the same issue
Because scrap RCM and Section 51 TDS are narrow, trade-specific rules most generalist filers don’t track closely, it’s common for the same gap to show up across several Sembudoss Street businesses that use the same accountant, or that simply learned the trade’s filing conventions from each other. If you know of others in a similar position, the underlying fix is the same for all of them — correctly separating scrap from new-stock transactions at the point of filing, not after a notice.
Frequently asked questions
I got a notice about unpaid RCM on scrap I bought — what does that mean?
It means the department has matched a scrap purchase from an unregistered seller against your filings and found no corresponding reverse-charge GST payment. Call 70 9232 9232 with the notice and we’ll calculate the exact liability and draft the reply.
Does this apply if I only trade new steel, not scrap?
No — the RCM and 2% TDS rules are specific to metal scrap. New rods, sheets, and pipes are taxed the ordinary forward-charge way and don’t carry this risk on their own.
What does it cost to get help with a notice?
Depends on the notice type and complexity — call 70 9232 9232 with your notice reference number for a straight quote.
Talk to a consultant, not a call centre
Call or WhatsApp 70 9232 9232 with your notice reference number and we’ll tell you exactly what it means and what to do next. Rated 5.0★ across 1,000+ Google reviews, serving Chennai since 2017.
Need ongoing filing instead? See GST Return Filing for Iron & Steel Wholesalers, Sembudoss Street, or the full GST Notice Reply guide.