Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

DRC 1 A not issued

1337 views

Save Share

Join Us Follow Us Add as Source

Suthaniya P

134 Points Posted on 26 February 2025

The GST officer has issued DRC 01.Order has been issued in DRC 07 after DRC 01.But not issued DRC 01 A.Is it correct?

Replies (4)

Quick Summary

This discussion addresses a situation where a GST officer issued DRC-01 and DRC-07 orders without first issuing the mandatory DRC-01A. Typically, DRC-01A serves as a summary of the show cause notice, giving taxpayers a chance to respond or pay before a formal demand. The standard procedure, as outlined in Rule 142(1A) of the CGST Rules, requires DRC-01A to be issued first. If this step was skipped, taxpayers can seek clarification, file a representation highlighting the procedural gap, or consider an appeal. It's crucial to respond to the demand within 30 days, even if contesting the procedure, to avoid accruing interest and penalties.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 26 February 2025

The GST officer's actions seem to be inconsistent with the standard procedure. Standard Procedure Typically, after issuing a DRC-01 (Demand and Recovery Notice), the officer should issue a DRC-01A (Summary of Show Cause Notice) before proceeding with further actions. Issuance of DRC-07 The issuance of DRC-07 (Order of Payment) without issuing DRC-01A appears to be a deviation from the standard procedure. Possible Next Steps To address this inconsistency, you may consider: 1. _Seek clarification_: Request the GST officer to clarify the reason for not issuing DRC-01A. 2. _File a representation_: Submit a representation to the officer, highlighting the procedural inconsistency and requesting rectification. 3. _Appeal_: If the issue persists, consider filing an appeal with the higher authorities. Relevant Provisions Refer to the GST Act and Rules, specifically: - Section 73 of the CGST Act, 2017 (Demand and Recovery) - Rule 142 of the CGST Rules, 2017 (Procedure for recovery of dues)

Suthaniya P

134 Points Posted on 27 February 2025

Thank you Sir.

Biswajit Sengupta

22 Points Posted on 27 February 2025

Thanks sir for clarification

Tax Garden

Tax Consultant

2036 Points Posted on 11 May 2026

Under Rule 142(1A), the department is supposed to issue DRC-1A first so you get a chance to pay or clarify before the formal demand notice. If they jumped straight to DRC-01, you can flag the procedural gap in your DRC-06 reply while still addressing the substance of the demand. Do not miss the 30-day window to respond or pay, even if you plan to contest the process, because interest and penalty continue to accrue regardless.