Can we do a JIRA transition on email reply?
Only if you install an addon that provides a mail handler that can work out that an incoming email is intended to change the status.
Service desk can do this in a limited way, but if you're not using that, the addon you want to look at is JEMH (there are more simple ones, but they're a lot less flexible). Or writing your own email handler.
Could you please share if there Is any documentation or any sample code snippets etc., available for writing email handler?
Have a quick read of https://developer.atlassian.com/jiradev/jira-architecture/building-jira-add-ons/jira-plugins2-overview/jira-plugin-module-types/message-handler-plugin-module and then head for the tutorial link at the bottom. Not a lot of code, but it'll put you in a position where you know an email has arrived that needs to do something with an issue.
Thanks Nic. I will check the docs and try to implement
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