GST
What happens if DRC-01B reply is not accepted
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Facts
Rule 88C(3) says if the amount is not paid or the explanation is not acceptable, it can be recovered under Sec 79. In practice officers usually issue a notice before recovery.
Provisions and law
- Rule 88C(3), CGST Rules 2017Amount not paid or not explained to the officer's satisfaction can be recovered under Sec 79
- Sec 79, CGST Act 2017Recovery of tax dues, including from bank accounts and debtors
- Sec 73, CGST Act 2017Demand for non-fraud cases for periods up to FY 2023-24
Analysis
If the officer moves to a show cause notice, you get a full chance to reply in DRC-06 and a hearing. Direct recovery of self-assessed tax not paid is possible under Sec 75(12), so short payment of tax you yourself declared in GSTR-1 is a risk. Keep a clear reconciliation so the officer can accept it.
Conclusion
- Ask for the officer's specific objection.
- Give a reconciliation with documents.
- If a notice comes, reply in DRC-06 on time.
- Pay the undisputed part to stop interest.
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