Answer

1. F

   Facts

   Since October 2020 Rule 142(1A) says the officer may issue DRC-01A, which the department reads as optional. The Allahabad High Court in World Phone Internet (as reported in June 2026) held it mandatory when read with Sec 74(5), but courts differ.

2. P

   Provisions and law

   • Rule 142(1A), CGST Rules 2017Before a show cause notice, the officer may communicate the tax, interest and penalty ascertained in Part A of DRC-01A; the person may pay or give submissions in Part B.
   • Sec 74(5), CGST Act 2017Under Sec 74, paying tax, interest and a penalty of 15 percent of tax before the notice closes the matter.
3. A

   Analysis

   If you got a show cause notice without DRC-01A, you can raise this in your reply, and ask for the benefit of paying with reduced penalty as if at the pre-notice stage. The same ruling said the right may be treated as waived if you contest on merits without claiming it. So mention it clearly at the start. Do not rely only on this point; reply fully on merits too.

4. C

   Conclusion

   1. 1Check if any DRC-01A was issued for the same period and issue.
   2. 2If not, raise the missing DRC-01A in the opening part of the reply.
   3. 3Ask for the pre-notice payment benefit if you want to settle.
   4. 4Reply on merits in the same reply.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.