GST DRC-01 Show-Cause Notice: How to Reply (2026)
What a GST DRC-01 show-cause notice under Section 73, 74 or 74A is, the DRC-01A intimation that comes before it, the time limits, and how to reply. Last verified October 2026.
How to · GST · Show-cause notice
A GST DRC-01 is the form that tells you the department proposes to recover tax, interest and penalty from you. It is the summary of a show-cause notice, and it starts a time bound process. A good reply, filed on time with the right proof, is your best defence. This page explains what a DRC-01 is, the DRC-01A intimation that usually comes first, the sections and time limits behind it, and how to reply. Last verified October 2026.
- What it is: DRC-01 is the summary of a show-cause notice served under Rule 142(1), along with the detailed notice.
- Step before it: a DRC-01A pre-notice intimation often comes first, where you can pay through DRC-03 or respond in Part B.
- Which section: Section 73 (non-fraud) or 74 (fraud) up to FY 2023-24, and Section 74A from FY 2024-25.
- How to reply: read the full notice, decide what to accept and pay through DRC-03, and file your reply in DRC-06 within the time stated.
01What a GST DRC-01 is
Form GST DRC-01 is the summary of a show-cause notice. Under Rule 142(1) of the CGST Rules, when the department proposes to recover tax, interest or penalty, it serves a DRC-01 summary along with the detailed show-cause notice. The DRC-01 sets out the amount proposed, the period, and the grounds in short. The detailed notice, usually attached, carries the full allegations and the material relied on.
In plain terms, a DRC-01 means the department has formed a view that you owe more than you paid, or wrongly claimed a credit or refund, and it is giving you a chance to show why that view is wrong before it passes an order.
DRC-01 is a summary, not the whole notice
The detailed show-cause notice should accompany the DRC-01. If only the summary is served and no proper notice follows, that is a defect you can raise, because a proper show-cause notice is required before recovery.
02DRC-01A: the intimation that usually comes first
Before issuing a show-cause notice, the officer often serves a DRC-01A. This is a pre-notice intimation under Rule 142(1A). It tells you the tax, interest and penalty the officer has worked out, before any formal notice.
At the DRC-01A stage you can either pay, fully or partly, through DRC-03, or file your submissions in Part B of the DRC-01A by the date stated. Using this stage well can avoid a formal notice altogether, or reduce the penalty. Courts have set aside orders where a taxpayer was denied the chance to respond to the DRC-01A.
03Which section applies to your notice
A DRC-01 summary is tied to the section under which the demand is raised. The section matters because it decides the penalty and the time limits.
- Section 73 applies to short payment or wrong credit without fraud, for periods up to the financial year 2023-24.
- Section 74 applies where fraud, wilful misstatement or suppression is alleged, again for periods up to 2023-24. The penalty is higher.
- Section 74A applies for the financial year 2024-25 onwards and brings the two streams together with a common framework.
So a notice for 2024-25 that still quotes only Section 73 or 74 has invoked a provision that no longer governs that period, and that mismatch is worth checking.
04Time limits
Two kinds of time limits matter: the time for the department to act, and the time for you to reply.
- Your reply: the time to reply is stated in the notice. Read it carefully and treat it as firm. A payment within the period set, in non-fraud cases, can sharply reduce or remove the penalty.
- Department timelines (up to FY 2023-24): under Section 73 the notice must come at least three months before the time limit for the order, and the order within three years of the due date for the annual return. Under Section 74 the figures are six months and five years.
- Section 74A (FY 2024-25 onwards): the notice is to be issued within a set period of the due date for the annual return, and the order within a set period of the notice, extendable in defined cases.
The exact days and months differ by section and period, so check the notice and the current law for your tax period.
05How to reply
- Read the detailed notice, not just the DRC-01 summary. Identify each allegation, the period, and the amount.
- Check for the DRC-01A. See whether a pre-notice intimation was given and whether you still have a Part B response option.
- Decide your position. Accept and pay through DRC-03 where the department is right, and contest the rest.
- File the reply in DRC-06. Submit your reply to the show-cause notice on the GST portal in Form DRC-06, with documents and legal grounds.
- Attend the hearing. Ask for and attend a personal hearing. Keep every acknowledgement.
If your case began with a scrutiny of returns, see the ASMT-10 scrutiny notice. To make a payment linked to the notice, see how DRC-03 works.
06If an order is passed: the appeal route
If the officer is not satisfied with your reply, an order is passed, usually summarised in Form DRC-07, which becomes a demand. You can appeal that order to the Appellate Authority under Section 107, by filing Form APL-01 within the time allowed and paying the required pre-deposit. From there, an appeal lies to the Goods and Services Tax Appellate Tribunal (GSTAT), and on questions of law to the High Court and the Supreme Court.
07Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
When a DRC-01 hardens into a demand order, the argument over Sections 73, 74 and 74A rarely ends with the officer. Claw lets you pull how the Appellate Authority, the GST Appellate Tribunal and the High Courts have read these recovery provisions, drawing on a library of 30 crore+ judgments that reaches back to the Supreme Court from 1950 and the High Courts from 1990, with a reply coming back in under 5 seconds. You can also keep your own notice matter in view, following its cases, orders and hearings across the 9,102 courts, benches and forums Claw covers, by the party name or the advocate name.
Your case papers stay yours: Claw does not use customer documents to train its AI models. Open a free Claw account to follow a GST demand from the first DRC-01 to the last appeal. To widen the search beyond your own matter, see case search across Indian courts.
08Sources and further reading
- GST portal: gst.gov.in
- CBIC GST (Act, Rules and forms): cbic-gst.gov.in
- India Code (bare Act): indiacode.nic.in
- Claw: clawlaw.in
This page is general information, not legal advice. GST law changes through amendments, notifications and judgments, so check the current text and take advice from a tax professional before you act.
09Frequently asked questions
What is a GST DRC-01 notice?
It is the summary of a show-cause notice, served under Rule 142(1) of the CGST Rules along with the detailed notice, when the department proposes to recover tax, interest and penalty. It tells you the amount proposed, the period, and the grounds in short.
What is the difference between DRC-01 and DRC-01A?
DRC-01A is a pre-notice intimation that usually comes first, telling you the amount the officer has worked out before any formal notice. DRC-01 is the summary of the actual show-cause notice. At the DRC-01A stage you can pay through DRC-03 or respond in Part B of the form.
Which section applies to my DRC-01?
For periods up to the financial year 2023-24, Section 73 covers non-fraud cases and Section 74 covers fraud, wilful misstatement or suppression. For the financial year 2024-25 onwards, Section 74A applies. The section decides the penalty and the time limits.
How do I reply to a DRC-01?
Read the detailed notice, decide what to accept and what to contest, pay any accepted amount through DRC-03, and file your reply to the show-cause notice in Form DRC-06 on the GST portal within the time stated, with documents and legal grounds. Ask for and attend a personal hearing.
What happens after the reply?
If the officer is not satisfied, an order is passed, usually summarised in Form DRC-07, which becomes a demand. You can appeal to the Appellate Authority under Section 107 in Form APL-01, and from there to the GST Appellate Tribunal and the High Court.
Can I track a GST demand appeal in Claw?
Yes. Once the demand is in dispute before the Appellate Authority, the GST Appellate Tribunal or a court, Claw follows its hearings and orders by party or advocate name across the 9,102 courts, benches and forums it covers, and returns what you search in under 5 seconds from 30 crore+ judgments. It helps you research and track the matter, not give legal advice.