GST DRC-01A: Intimation of Tax Ascertained as Payable
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-01A is a PRE-show-cause intimation under section 73(5)/74(5). The officer states the tax they believe is payable and invites you to pay (with the reduced early-payment penalty) or to explain — before a formal SCN (DRC-01).
How to respond
- Review Part A — the tax, interest and penalty the officer has ascertained.
- Decide: pay now (15% penalty under §74(5), or NIL under §73 pre-SCN) or contest.
- File your response in Part B of DRC-01A with your grounds and evidence.
Common defences
- Reconcile the alleged shortfall against your GSTR-3B / 2B — figures often overstate.
- If §74 (fraud) is invoked, test whether suppression is actually made out (else §73's 10%).
- Check the limitation window — a time-barred period cannot be demanded.
Forms & sections
- DRC-01A Part B (reply)
- §73(5) / §74(5)