Notices · GST
DRC-07 confirms a GST demand. You have three months to pay, appeal or ask for an obvious error to be corrected — and an appeal with its pre-deposit stops recovery of the rest.
Quick Statutory Answer
Form GST DRC-07 is the summary of an order confirming a GST demand of tax, interest and penalty, uploaded under Rule 142(5). Pay it, or appeal to the Appellate Authority in Form APL-01 within three months of the order being communicated (section 107(1)); the authority can allow one more month for sufficient cause (section 107(4)). An appeal needs the admitted amount plus a pre-deposit of 10% of the tax in dispute, after which recovery of the rest is stayed (section 107(7)). An error apparent on the record can be corrected by asking for rectification within three months (section 161).
| What | For this notice |
|---|---|
| Sent by | The GST proper officer, after deciding a show cause notice |
| Under | Sections 73, 74 or 74A with sections 78, 107 and 161, CGST Act 2017; Rule 142(5), CGST Rules |
| Reply in | An appeal in Form GST APL-01, or a rectification request under section 161 |
| Deadline | Appeal within 3 months of the order being communicated — one more month only for sufficient cause |
| If ignored | The demand is payable within 3 months of the order (section 78), and then recoverable, including from your bank account |
A fill-in format: replace every [bracket] with your own facts and delete what does not apply. Copy it, or download it in Word, free.
From
[Legal name of the business] GSTIN: [GSTIN] [Principal place of business]
Date: [DD/MM/YYYY]
To
The Proper Officer [Designation, e.g. State Tax Officer / Superintendent], [Ward / Circle / Range] [Office address]
Subject: Application under section 161 of the CGST Act, 2017 for rectification of the order in Form GST DRC-07, Reference No. [reference number] dated [date], for the period [period]
Respected Sir/Madam,
1. We refer to the above order. This application is made within three months of the date of issue of the order.
Error apparent on the face of the record
2. The order [states the tax payable as Rs. [amount], whereas the demand in the show cause notice was Rs. [amount] / does not take into account the payment of Rs. [amount] made through Form GST DRC-03, ARN [ARN] dated [date], which is on the portal / contains an arithmetical error in [describe]].
3. The error is apparent from the record itself — [refer to the document on the portal that shows it] — and needs no argument or fresh evidence to establish.
Prayer
4. We request that the order be rectified to [state the correction], and that the demand shown on the portal be updated accordingly. We request an opportunity of hearing if any rectification adverse to us is contemplated.
Enclosures
Copy of the order in Form GST DRC-07 [DRC-03 acknowledgement / the show cause notice / other record showing the error]
Thanking you, For [Legal name of the business] [Name of authorised signatory] [Designation] Place: [Place]
The summary of an order under section 73, 74 or 74A of the CGST Act confirming a demand of tax, interest and penalty, uploaded on the GST portal under Rule 142(5). The demand then appears in your liability register.
Three months from the date the order is communicated, under section 107(1). The Appellate Authority may allow one further month if you show sufficient cause (section 107(4)), and cannot extend it beyond that.
The whole of the amount you admit, plus 10% of the tax in dispute, subject to a cap of ₹20 crore each for CGST and SGST — or, where the order demands only a penalty, 10% of that penalty. Once it is paid, recovery of the rest is stayed while the appeal is pending (section 107(7)).
Only for an error apparent on the face of the record — a wrong figure, a payment ignored, an arithmetical slip. Ask for rectification under section 161 within three months of the order. Anything that needs argument has to go in appeal.
A different form, used to bring a demand under the laws that existed before GST onto the GST portal so that it can be recovered.
An explanation of the rules, not advice on your notice. The date printed on your notice governs, and a demand of any size deserves a CA or an advocate before you reply.