Answer

1. F

   Facts

   The officer will usually issue a show cause notice in DRC-01 with the same amount, and the chance to settle without or with lower penalty may be lost.

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 73(5), CGST Act 2017A person may pay tax with interest before a Sec 73 notice is issued and inform the officer; no penalty is then payable.
   • Sec 74A(8), CGST Act 2017Under Sec 74A, paying tax and interest before the notice means no penalty in non-fraud cases; in fraud cases a 15 percent penalty is also paid.
3. A

   Analysis

   Ignoring it does not stop the case. After a notice, penalties under Sec 74A or 74 increase, and under Sec 73 a penalty applies unless paid within 30 days of the notice. You can still reply to the notice on merits, but the record shows you did not cooperate earlier. Even a short reply is better than none.

4. C

   Conclusion

   1. 1Do not ignore the intimation.
   2. 2File at least a short reply asking for time.
   3. 3Pay any clearly correct amount early.
   4. 4Prepare for a possible show cause notice.

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