GST

DRC-01: Show cause notice for tax demand

GST DRC-01 show cause notice ka reply kaise karein

Updated 11 November 2026 · For taxpayers in India

Form GST DRC-01 is the summary of a show cause notice issued under Section 73, 74 or 74A. It formally proposes a tax demand with interest and penalty, and asks why it should not be confirmed.

Deadline to reply	Usually 30 days, as stated in the show cause notice.
How to reply	Form GST DRC-06
Where	GST portal → Services → User Services → View Notices and Orders (or View Additional Notices/Orders)

Why you may have received it

• Unpaid or short-paid tax
• Wrongly availed or utilised input tax credit
• Erroneous refund
• Findings from scrutiny, audit or investigation

How to reply, step by step

1. Identify which section the notice is under (73, 74 or 74A). This decides the penalty and the time limits.
2. Check whether the notice was issued within the time limit allowed for that period.
3. If you accept part of the demand, pay it with interest via DRC-03. Under Section 73 there is no penalty if you pay within 30 days of the notice, and under Section 74A (non-fraud cases) the window is 60 days.
4. Reply to every allegation in DRC-06 with documents, and ask for a personal hearing.

Documents to keep ready

• The full show cause notice and annexures
• Returns, ledgers and invoices for the period
• Reconciliations
• Earlier replies (ASMT-11, DRC-01A Part B)

What your reply should cover

• SCN reference, date and section
• Preliminary objections (limitation, jurisdiction) if any
• Point-wise reply on merits
• Calculation of correct liability
• Payments made via DRC-03
• Request for personal hearing

What happens if you ignore it

The officer can confirm the demand ex parte through an order in Form GST DRC-07, after which recovery can begin.

Frequently asked questions

Do I need a CA or lawyer for DRC-01?

For large amounts or allegations of fraud (Section 74), yes. A show cause notice is the stage where your reply builds the record for any appeal later.

Will I get a personal hearing?

Yes. Section 75(4) requires a hearing when you request one or when an adverse decision is contemplated. Ask for it in your reply.

Related notices

General information, not legal advice. Rules and portal paths change. Always follow the instructions in your notice and check with a CA for your specific case.