How to Reply to a GST DRC-01 Notice (Section 73/74)
Got a FORM GST DRC-01 show-cause notice? Learn what it means, your 30-day deadline, how to reply in FORM GST DRC-06, and the strongest defences — with citations.
What is this notice?
FORM GST DRC-01 is the summary of a show-cause notice issued by a GST officer when tax appears short-paid, unpaid, or input tax credit (ITC) wrongly availed or utilised. It precedes a demand order (DRC-07) and must be answered — usually within 30 days — in FORM GST DRC-06.
Common reasons it is issued
- ITC in GSTR-3B exceeds GSTR-2A/2B (the classic mismatch)
- Output tax short-paid or turnover under-reported
- ITC claimed on ineligible or blocked credits (Section 17(5))
- Interest or late fee on delayed payment of tax
How to reply — step by step
- Pin the exact allegation — the precise figure demanded and the provision cited.
- Reconcile the facts invoice-wise; a return-to-return mismatch is not, by itself, proof of wrong ITC.
- Choose the strongest defence — e.g. Section 16(4) timing for prior-year credit, or Rule 36(4)/Circular 183/2022 for 2A-3B differences.
- Cite the right authorities — relevant sections, circulars and High Court/Supreme Court precedents on point.
- File FORM GST DRC-06 on the portal before the deadline and request a personal hearing under Section 75(4).
Draft your DRC-01 reply in minutes
Upload your notice — Yukti extracts the allegation, verifies your facts, and drafts a citation-backed reply.
Draft my reply free →Frequently asked questions
What is the time limit to reply to DRC-01?
Generally 30 days from service of the notice unless it states otherwise. File FORM GST DRC-06 before the due date.
What happens if I don't reply to a DRC-01?
The officer can proceed ex-parte and pass a demand order (DRC-07) on the available record, so always respond — even if only to seek time.
Can ITC be denied only because it isn't in GSTR-2A/2B?
Courts have held a bona-fide recipient's ITC cannot be denied solely for a supplier's default; the department must examine the supplier first. The facts of each case matter.
Related notices
This page is general information, not legal advice. Every notice turns on its own facts — verify with a professional or draft a fact-checked reply on Yukti.