Master in Accounts & high court Advocate
8866 Points
Joined December 2011
DRC-07 is a notice issued by the GST department regarding non-claimed Input Tax Credit (ITC). Here's what it typically means: - DRC stands for "Demand and Recovery Circular" - 07 refers to the specific code for non-claimed ITC The notice is usually issued when the GST department identifies a discrepancy in the ITC claimed by a taxpayer. In this case, it seems that the taxpayer has not claimed the eligible ITC, and the department is notifying them to pay the due tax amount. To address this, the taxpayer should: 1. Verify the ITC eligibility and calculation 2. Check for any errors or omissions in the GSTR-3B or GSTR-1 returns 3. File a revised return (GSTR-3B) to claim the eligible ITC 4. Pay the due tax amount (if any) and interest 5. Respond to the notice within the specified timeframe (usually 30 days) It's essential to address the notice promptly to avoid any further action, such as penalties or prosecution. Consulting a GST expert or chartered accountant can help ensure accurate compliance and resolution.