GST DRC-01: Show Cause Notice under Section 73 / 74
Full analysis: we compute your tax + interest + penalty exposure, the limitation / time-bar position, and whether the issuing officer had the monetary authority to raise this demand — every figure deterministic and source-cited.
What this notice means
DRC-01 is the formal show-cause notice (Rule 142(1)) proposing a demand under section 73 (non-fraud) or 74 (fraud). You must reply within the window stated; an unanswered SCN proceeds to an adjudication order (DRC-07).
How to respond
- Note the reply-by date and the personal-hearing date — both are statutory.
- Reconcile every disputed period and ground against your returns and records.
- File your reply via DRC-06 with submissions, evidence and case law.
Common defences
- §73 vs §74: contest the fraud characterisation — a 100% penalty drops to 10%.
- Limitation: §73 order within 36 months, §74 within 60 months of the GSTR-9 due date.
- Authority: confirm the officer's rank can adjudicate the combined demand amount.
Forms & sections
- DRC-06 (reply)
- Rule 142(1)
- §73 / §74