Answer

1. F

   Facts

   A show cause notice (SCN) asks you to explain why tax, interest and penalty should not be demanded. Its summary is uploaded in DRC-01 under Rule 142(1). You reply in DRC-06, and the officer then passes an order.

2. P

   Provisions and law

   • Rule 142(1), CGST Rules 2017Summary of show cause notice in DRC-01 and of statement in DRC-02
   • Rule 142(4), CGST Rules 2017Reply to show cause notice in DRC-06
   • Sec 73, CGST Act 2017Demand for tax short paid without fraud, for periods up to FY 2023-24
3. A

   Analysis

   An SCN is the formal start of a demand case. A reasoned reply with documents and a hearing request often reduces or drops the demand. Ignoring it leads to an order based only on the department's view, which is much harder to fight in appeal.

4. C

   Conclusion

   1. 1Download the SCN, DRC-01 and annexures from the portal
   2. 2Note the section, periods, amounts and reply date
   3. 3Collect documents for each allegation
   4. 4Draft and file DRC-06 before the due date

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