GST DRC-07 Demand Order: What It Means and How to Challenge It
FORM GST DRC-07 is the summary of an adjudication order — the demand, not the notice. Once it is uploaded, the amount enters your electronic liability register and becomes recoverable. The normal remedy is an appeal in FORM GST APL-01 to the Appellate Authority within three months of communication, on payment of the admitted tax in full plus a pre-deposit of ten per cent of the disputed tax.
What is this notice?
FORM GST DRC-07 is the summary of an order passed after adjudication, setting out the tax, interest and penalty finally determined. It follows a show-cause notice in DRC-01 and, usually, a reply in DRC-06. On upload, the liability is posted to the electronic liability register, and recovery under Section 79 can follow if it is neither paid nor stayed.
Common reasons it is issued
- A DRC-01 show-cause notice was not replied to, and the officer proceeded ex-parte
- The reply was filed but the officer was not satisfied on some or all allegations
- Best-judgment assessment under Section 62 or 63 was confirmed
- Demand arising from an audit under Section 65 or a special audit under Section 66
How to reply — step by step
- Read the order behind the summary, not just DRC-07 — the appealable order is the detailed order, and its reasoning is what you attack.
- Diary the limitation immediately: three months from communication under Section 107(1), with a further one month condonable on sufficient cause.
- Check for a breach of natural justice — no personal hearing despite request, no reasons, or a finding on a ground never put to you in the notice. These succeed more often than a fresh argument on merits.
- Verify the arithmetic against your own ledgers; demands confirmed ex-parte frequently carry figures that no longer match the record.
- File FORM GST APL-01 with the pre-deposit — admitted tax in full plus ten per cent of the disputed tax — which stays recovery of the balance under Section 107(7).
Draft your DRC-07 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
How long do I have to appeal a DRC-07?
Three months from the date the order is communicated, under Section 107(1). The Appellate Authority may condone a further one month on sufficient cause shown; beyond that, the statutory window is closed.
What is the pre-deposit for a GST appeal?
The admitted liability in full, plus ten per cent of the tax in dispute, subject to the statutory ceiling. Paying it operates as a stay on recovery of the remaining amount.
Can a DRC-07 be rectified rather than appealed?
Where there is an error apparent on the face of the record, a rectification application under Section 161 lies, generally within six months. It is not a substitute for an appeal on merits.
What if I never received the DRC-01?
Service is a question of fact and is frequently the strongest ground: uploading to a portal tab the taxpayer never saw has been held insufficient in several High Court decisions. Raise it specifically, with evidence of what was and was not received.
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.