GST DRC-01 is an official document issued by the tax authorities under the Goods and Services Tax (GST) system in India. It serves as a notice to a taxpayer when the department believes that tax has not been paid correctly — either due to underpayment, non-payment, or incorrect refund claims.
This notice is issued electronically through the GST portal and marks the beginning of adjudication proceedings under Section 73 or 74 of the CGST Act. It outlines the tax amount payable, along with any interest or penalties applicable. The taxpayer is expected to respond within the specified time to accept the demand or contest it with supporting documents.
For small business owners and first-time entrepreneurs, receiving a GST DRC-01 means there’s a discrepancy in your GST returns or records. Timely response is critical, as ignoring the notice can lead to further legal action or recovery proceedings. Businesses are advised to regularly reconcile their GST filings and maintain accurate records to avoid such notices.
Staying compliant with GST regulations can be challenging, especially when managing multiple invoices, returns, and reconciliations. This is where expert guidance can help. Platforms like FinTax24’s GST solutions offer end-to-end support to ensure your business remains compliant and audit-ready, reducing the risk of receiving notices like DRC-01.
In short, GST DRC-01 is not just a form — it’s a formal communication that demands your attention and action. Addressing it promptly and accurately is essential for maintaining your business’s credibility and legal standing.