Rule 142 CGST Rules: Form DRC-01 Notice, DRC-06 Reply & Recovery SOP
Rule 142 CGST Rules: Form DRC-01 Notice, DRC-06 Reply & Recovery SOP
Legal litigation guide for tax advocates and accountants on navigating GST DRC-01 show cause notices, DRC-03 voluntary payments, and Section 79 bank attachment recovery.
Who is this for: GST Tax Litigation
Quick Answer: What Is the Statutory Recovery Workflow Under Rule 142?
Rule 142 governs GST demand and recovery notices: DRC-01 is the electronic SCN summary; DRC-06 is the taxpayer reply (due in 30 days); DRC-03 is used for voluntary tax payment; and DRC-07 is the final demand order triggering Section 79 bank recovery if unpaid after 3 months.
- DRC-01 is an electronic summary of Show Cause Notice issued under Section 73/74/74A.
- Form DRC-06 reply must be filed within 30 days with full reconciliation annexures.
- Form DRC-03 allows voluntary tax payment to reduce statutory penalty liabilities.
- Section 79 recovery proceedings (bank attachment) trigger 3 months post DRC-07 order.
1. The 4-Stage Rule 142 DRC Notice Cycle
Stage 1: Form GST DRC-01 (Summary SCN)
Issued electronically by proper officer alleging short payment, excess ITC, or erroneous refund.
Stage 2: Form GST DRC-06 (Taxpayer Representation)
Formal written reply submitted on portal within 30 days containing reconciliation statements.
Stage 3: Form GST DRC-07 (Adjudication Order)
Final demand order quantifying tax, mandatory 18% interest, and statutory penalty dues.
Stage 4: Section 79 Statutory Recovery
Initiated 3 months after DRC-07 service via bank account garnishment or asset attachment.
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