Confused?

Get Clarity from an Expert for Only ₹199!

We Are Registered Under:-

GST Notice Reply DRC-01

A GST Notice (DRC-01) is issued by the GST department when a taxpayer is found liable to pay additional tax, penalty, or interest due to discrepancies in returns, audits, or assessments. If you receive a DRC-01 notice, you must respond within the given timeframe to avoid penalties or further legal actions.

With Company Mitra’s expert assistance, you can draft a strong reply, submit necessary documents, and resolve the notice efficiently, ensuring compliance with GST laws.

Requirements for GST Notice Reply (DRC-01)

The taxpayer must analyze the notice carefully and identify the reason for the demand.
Proper documentation must be provided to support the response.
The reply must be submitted within the deadline, usually 7 to 30 days from the notice date.
If the tax liability is incorrect, valid legal arguments should be presented.
In case of genuine tax dues, the taxpayer must pay the amount or request clarification.

Benefits of Responding to GST Notice (DRC-01) on Time

Avoids Heavy Penalties – Timely response prevents additional fines.
Prevents Legal Complications – Non-reply can lead to demand orders & tax recovery.
Ensures Proper Representation – Defend your case with strong documentation.
Avoids Interest Charges – Quick resolution prevents interest on pending dues.
Compliance with GST Laws – Maintains a good tax record with the government.

Document Required

Documents Required for GST Notice Reply (DRC-01)

Copy of GST Notice (DRC-01)
GST Returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C)
Electronic Cash/Credit Ledger Statement
Tax Payment Challans (if applicable)
Reconciliation Statement (if discrepancies exist)
Any Additional Supporting Evidence

Professional Fees

~~₹5,000.00~~ ₹2,500.00

Additional Cost

Process time

7 to 30 days (depending on the notice deadline).

Steps

🔽 Review & Analysis of Notice – We examine the reason for the notice and assess the demand.
🔽 Document Collection & Verification – We prepare the necessary documents to support your reply.
🔽 Drafting a Strong Response – Our experts draft a well-structured reply with legal backing.
🔽 Online Submission via GST Portal – We file the response through Form DRC-06 on your behalf.
🔽 Follow-Up & Resolution – We coordinate with GST officers and ensure a favorable resolution.

FAQ

👉 What is GST Notice DRC-01?
It is a Show Cause Notice (SCN) issued when the GST department finds under-reported tax liability.

👉 How much time do I have to reply to DRC-01?
Generally, you have 7 to 30 days, as mentioned in the notice.

👉 What happens if I don’t respond to DRC-01?
The department can pass a demand order (DRC-07), leading to tax recovery & penalties.

👉 Can I dispute the tax demand in DRC-01?
Yes, if the demand is incorrect, you can file a detailed response with legal justification.

👉 Where do I submit the reply for DRC-01?
You must reply through Form DRC-06 on the GST portal.

👉 What if I agree with the demand?
You can pay the tax liability immediately using Form DRC-03 to avoid penalties.

👉 What is the penalty for non-compliance with DRC-01?
If no reply is filed, the GST officer can impose 100% penalty & interest on the demand.

👉 Can GST registration be canceled for non-response to DRC-01?
Yes, in extreme cases of fraud or repeated non-compliance.

👉 Can I appeal against the DRC-07 order if I miss the reply deadline?
Yes, you can file an appeal within 3 months of receiving the demand order.

👉 How does Company Mitra assist in responding to DRC-01?
We provide expert legal drafting, document support, and complete representation to ensure the best resolution.

👉 Can I get an extension to reply to DRC-01?
Extensions are rarely granted, so it’s best to file the reply within the given time.

Compliances

📅 GST Notice (DRC-01) Compliance Timeline

Compliance Requirement 📑	Due Date ⏳	Consequence of Delay ⚠️
Response to GST Notice (DRC-01)	Within 7 to 30 days from notice issuance	Demand order (DRC-07) & tax recovery
Tax Payment (if applicable)	Before the due date in the notice	Additional interest & penalties
Filing of Reply via DRC-06	Before the deadline	Automatic liability determination
Appeal Against DRC-07 Order	Within 3 months of demand order	Demand becomes final & non-reversible
Voluntary Tax Payment via DRC-03	Before demand order is issued	Avoids legal action & penalties

Penalties

🚨 Penalties & Interest for GST Notice Non-Compliance

Non-Compliance Issue ⚠️	Penalty / Interest Rate 🔴	Impact 📌
Failure to Respond to DRC-01	100% of the tax amount as a penalty	Demand order (DRC-07) is issued, making tax payable immediately
Delayed Payment of Tax after Notice	18% interest per annum on outstanding tax	Increases total tax liability over time
Filing an Incorrect or Incomplete Reply	Additional penalties as per GST laws	Can lead to rejection of the response and further legal action
Ignoring Demand Order (DRC-07)	GST department can initiate tax recovery proceedings	Bank accounts and assets may be frozen or seized
Failure to Appeal Against DRC-07 on Time	Demand order becomes final, no further appeal allowed	The taxpayer is legally bound to pay the demanded amount