Answer

1. F

   Facts

   If the officer does not accept the Part B reply, a show cause notice in DRC-01 follows. You reply in DRC-06 within the time given and can ask for a personal hearing.

2. P

   Provisions and law

   • Sec 73(1), CGST Act 2017Show cause notice for tax not paid, short paid or ITC wrongly availed for reasons other than fraud, for periods up to FY 2023-24.
   • Sec 74A, CGST Act 2017For FY 2024-25 onwards, one procedure for demands: notice within 42 months of the annual return due date, order within 12 months of the notice; penalty depends on whether fraud is alleged.
   • Sec 75(4), CGST Act 2017A personal hearing must be granted where requested in writing or where any adverse decision is contemplated.
3. A

   Analysis

   Check whether the notice deals with your earlier reply. If it ignores your points, say so and attach the earlier reply. Repeat and expand the reconciliation. Under Sec 73, paying within 30 days of the notice reduces penalty to nil, and Sec 74A has similar early-payment reductions.

4. C

   Conclusion

   1. 1Compare the notice with your DRC-01A reply.
   2. 2Draft the DRC-06 reply covering each point.
   3. 3Attach the earlier reply and documents.
   4. 4Request a personal hearing.
   5. 5Consider paying any part you now accept.

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