Answer

1. F

   Facts

   DRC-01 is the summary of a show cause notice proposing a tax demand with interest and penalty. The notice gives a date to reply in DRC-06, usually 30 days. You also get a chance for a personal hearing.

2. P

   Provisions and law

   • Rule 142, CGST Rules 2017Summary of notice in DRC-01, reply in DRC-06, order summary in DRC-07, payment in DRC-03
   • Sec 73, CGST Act 2017Demand where tax is short paid or ITC wrongly taken without fraud, for periods up to FY 2023-24
   • Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, with separate penalties for fraud and non-fraud cases
3. A

   Analysis

   First read which section is used, the period, the amount and the ground. Check that a detailed notice is attached and not just the DRC-01 summary. Then gather books, returns and documents for that period. A clear, figure-based reply in DRC-06 on time is the best defence. If you agree with part of it, paying early can cut or remove penalty.

4. C

   Conclusion

   1. 1Download the DRC-01 and the detailed notice from Services, User Services, View Additional Notices and Orders.
   2. 2Note the section, period, amount and reply date.
   3. 3Collect returns, books, invoices and payments for the period.
   4. 4Draft and file the DRC-06 reply with documents.
   5. 5Ask for a personal hearing in the 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.