DRC-01

Summary of Show Cause Notice DRC-01 is a summary form issued electronically along with a detailed Show Cause Notice (SCN) under GST. It specifies the tax, interest, and penalty demanded, serving as a formal communication requiring the taxpayer to explain why the demand shouldn't be finalized. Example A business receives an SCN for short payment of GST. Accompanying it is form DRC-01 detailing the exact tax deficit of ₹50,000, interest of ₹5,000, and a penalty (VERIFY: 10% or ₹10,000, whichever is higher), prompting a formal reply. When it matters in practice It marks the formal initiation of recovery proceedings. Taxpayers must respond within the given timeframe (VERIFY: 30 days) to contest the demand and avoid unilateral recovery actions. Related terms - SCN - DRC-01A - GST Assessment Related Service GST Notice Management