GST
DRC-01A after scrutiny or audit
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Facts
If the officer is not satisfied with a scrutiny reply under Sec 61 or audit findings under Sec 65, he can start demand action. DRC-01A is often the first step.
Provisions and law
- Sec 61, CGST Act 2017Scrutiny of returns; action under Sec 73 or 74 if the explanation is not acceptable
- Sec 65, CGST Act 2017Departmental audit; findings can lead to demand
- Rule 142(1A), CGST Rules 2017Before a show cause notice, the officer may communicate tax, interest and penalty ascertained in Part A of DRC-01A
Analysis
Re-read your earlier reply and the points the officer did not accept. Address only those in Part B, with fresh evidence if possible. Paying accepted points now saves penalty.
Conclusion
- Compare the DRC-01A with your ASMT-11 reply or audit report.
- Identify the open points.
- Pay accepted points through DRC-03.
- Reply to the rest in Part B.
A Savvy can do this for you
Pre-show cause intimation DRC-01A and reply
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