GST

What happens if DRC-01A is ignored

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Find

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.

Provisions

Rule 142(1A), CGST Rules 2017; Sec 73(5), CGST Act 2017; Sec 74A(8), CGST Act 2017

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.

Close

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

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