DRC 04

This discussion clarifies the implications of a DRC-04 acknowledgement following the reversal of common Input Tax Credit (ITC) under Rule 42. The core question is whether tax authorities can later request explanations regarding exempted supplies once a DRC-04 has been issued. The consensus suggests that after the DRC-04 acknowledgement, the department generally cannot revisit the same matter, although officers might inquire during return scrutiny.