A Breakdown of DRC Forms: Understanding Their Role in GST Demand and Recovery

Received a GST notice and unsure what it means? The DRC forms play a crucial role in tax demand, recovery, and compliance under the GST regime. Understanding these forms is essential for taxpayers to respond correctly and avoid unnecessary penalties.

The GST law provides a structured mechanism for tax authorities to communicate with taxpayers regarding tax demands, discrepancies, interest, penalties, and recoveries. Various DRC forms serve different purposes—be it intimation, adjudication, or enforcement.

This article will walk you through the different DRC forms under GST, their significance, and the necessary actions taxpayers should take upon receiving them.

Understanding DRC Forms: Categorization

GST DRC forms serve as the primary means of communication between tax authorities and taxpayers regarding tax demands, liabilities, recoveries, and appeals. These forms can be broadly categorized based on their function:

Intimations & Notices

• DRC-01A - Intimation of tax ascertained as being payable under section 73(5)/74 (5)/ /74A (8)/ 74A (9)

• DRC-01 -Summary of Show Cause Notice

• DRC-02 -Summary of Statement

• DRC-03 -Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement

• DRC-03A- Application for adjustment of the amount paid through FORM GST DRC-03 against the order of demand

• DRC-04 -Acknowledgement of acceptance of payment made voluntarily

• DRC-05 -Intimation of conclusion of proceedings

• DRC-06 - Reply to SCN

• DRC-07 - Summary of the order

• DRC-07A -Summary of the order creating demand under existing laws

• DRC-08 -Rectification of Order

• DRC-08A- Amendment/Modification of summary of the order creating demand under existing laws

• DRC-01B -Intimation of difference in liability reported in statement of outward supplies and that reported in return

• DRC-01C -Intimation of difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return

• DRC-01D -Intimation for amount recoverable under section 79

Recovery Proceedings

• DRC-09 - Order for recovery through a specified officer under section 79

• DRC-10 - Notice for auction of goods under section 79 (1) (b) of the Act

• DRC-11 - Notice to successful bidder

• DRC-12 - Sale certificate

• DRC-13 - Notice to third parties under section 79(1) (c)

• DRC-14 -Certificate of Payment to a Third Person

• DRC-15 -Application Before The Civil Court Requesting Execution For A Decree

• DRC-16 -Notice for attachment and sale of immovable/movable goods/shares under section 79

• DRC-17 -Notice for Auction of Immovable/Movable Property under section 79(1)(d)

• DRC-18 -Certificate action under clause (e) of sub-section (1) section 79

• DRC-19 - Application to the Magistrate for Recovery as Fine

• DRC-20 -Application for Deferred Payment/ Payment in Instalments

• DRC-21 - Order for acceptance/rejection of application for deferred payment / payment in instalments

• DRC-22 -Provisional attachment of property under section 83

• DRC-22A -Application for filing objection against provisional attachment of property

• DRC-23 - Restoration of provisionally attached property / bank account under section 83

• DRC-24 - Intimation to Liquidator for recovery of amount

• DRC-25 - Continuation of recovery proceedings

Now, let’s dive into a detailed overview of the GST demand forms below:

Intimations & Notices

1. Form GST DRC-01A: Pre-Notice Communication of Tax Liability

✓ Form GST DRC-01A is issued under Rule 142(1A) of the CGST Rules.

✓ Serves as a pre-notice intimation before issuing a demand notice under Section 73(1), 74(1), or 74A(1).

✓ Communicates ascertained tax, interest, and penalty liability to the taxpayer.

✓ Allows the taxpayer an opportunity for voluntary payment before a formal Show Cause Notice (SCN).

✓ Structure of DRC-01A

• Part A: Officer informs the taxpayer of the liability.

• Part B: Taxpayer may partially pay or contest the proposed liability.

• Part C: Officer may acknowledge the payment, consider the taxpayer’s response, or both.

✓ Change in Legal Position

• Initially mandatory (Notification No. 49/2019 - Central Tax, dated October 9, 2019).

• Later made optional by the CGST (Twelfth Amendment) Rules, 2020 (Notification No. 79/2020 - Central Tax, dated October 15, 2020).

• Officer now has discretion to issue pre-notice communication or proceed directly with an SCN.

2. �Form GST DRC-01: Summary of Demand & Best Judgment Assessment Notice

✓ Form GST DRC-01 is issued under Rule 142(1)(a) of the CGST Rules.

✓ Accompanies a Show Cause Notice (SCN) under Sections 52, 62-64, 73, 74, 74A, 76, 122-125, 127, 129, or 130.

✓ Provides a summary of tax, interest, and penalty payable by the taxpayer.

✓ Best Judgment Assessment Cases

• Under Rule 100(2), if a best judgment assessment is proposed under Section 63, the officer issues Form GST ASMT-14.

• A summary of ASMT-14 is electronically issued in Form GST DRC-01.

✓ Key Distinction from Form GST DRC-01A

• DRC-01A is a pre-notice intimation and optional.

• DRC-01 is mandatory and always issued after an SCN.

3. Form GST DRC-01B: Intimation of Tax Discrepancy Between GSTR-1 and GSTR-3B

✓ Form GST DRC-01B is issued under Rule 88C of the CGST Rules.

✓ Notifies a registered taxpayer when tax liability reported in GSTR-1 (or GSTR-1A) exceeds the tax liability declared in GSTR-3B for a given tax period.

✓ Sent electronically via Part A of Form GST DRC-01B and also emailed to the taxpayer.

✓ Taxpayer’s obligation Upon Receiving the Intimation

• Option 1: Pay the differential tax liability along with interest under Section 50 using Form GST DRC-03 and report it in Part B of Form GST DRC-01B.

• Option 2: Provide an explanation for the discrepancy in respect of any unpaid differential tax liability in Part B of Form GST DRC-01B within seven days on the common portal.

�4. Form GST DRC-01C: Intimation of ITC Discrepancy Between GSTR-3B and GSTR-2B

✓ Form GST DRC-01C is issued under Rule 88D of the CGST Rules.

✓ Notifies a registered taxpayer when ITC availed in GSTR-3B exceeds ITC available in GSTR-2B for a given tax period.

✓ Sent electronically via Part A of Form GST DRC-01C and also emailed to the taxpayer.

✓ Taxpayer’s obligation Upon Receiving the Intimation

• Option 1: Pay the excess ITC availed, along with interest under Section 50 using Form GST DRC-03 and report it in Part B of Form GST DRC-01C.

• Option 2: Provide an explanation for the discrepancy in Part B of Form GST DRC-01C, specifying the reason for any unpaid excess ITC availed, within seven days on the common portal.

✓ Consequences of Non-Compliance

• If the taxpayer fails to pay or respond, or if the explanation is unsatisfactory, the excess ITC claimed may be demanded under Section 73, 74, or 74A of the CGST Act.

5. �Form GST DRC-01D: Intimation of Recoverable Tax or Interest Under Section 79

✓ Form GST DRC-01D is issued under Rule 142B of the CGST Rules.

✓ Notifies the taxpayer about unpaid tax or interest that has become recoverable under Section 79.

✓ Also arises due to differences identified under Section 75 read with Rule 88C or other applicable provisions.

✓ Sent electronically via Form GST DRC-01D, directing the taxpayer to pay the outstanding amount within 7 days of the date of the said intimation.

✓ The recoverable amount is also recorded in Part II of the Electronic Liability Register (FORM GST PMT-01).

✓ Consequences of Non-Compliance:

• If the taxpayer fails to pay within the specified period, Form GST DRC-01D serves as a notice for recovery.

• The proper officer may initiate recovery proceedings under Rules 143 to 147 or Rules 155 to 160 of the CGST Rules.

6. Form GST DRC-02: Statement of Tax Demand

✓ Issued electronically as a summary of a statement served under Section 73(3), Section 74(3), or Section 74A(3) of the CGST Act.

✓ Summarizes the details of the tax, interest, or penalty payable by the taxpayer.

✓ Applies when a Show Cause Notice (SCN) under Section 73(1), 74(1), or 74A(1) has already been issued for a specific tax period, but additional unpaid or short-paid tax, erroneous refund, or wrongly availed ITC is identified for other periods.

✓ In such cases, the proper officer issues a statement instead of a fresh SCN.

7. Form GST DRC-03: Voluntary Payment of Tax, Interest, and Penalty

✓ Used by taxpayers to voluntarily pay tax, interest, or penalty under various provisions of the CGST Act.

✓ Before Notice Issuance (as per Rule 142(2)):

• If a taxpayer self-determines any tax liability or accepts the tax, interest, and penalty communicated via Form GST DRC-01A (pre-SCN intimation), they can make the payment through Form GST DRC-03.

✓ After Receiving a Show Cause Notice (SCN) but within the prescribed time (as per Rule 142(3)):

• Section 73(8) - Non-Fraud Cases:

• If taxpayer pays the tax along with interest u/s 50 within 30 days of the SCN issuance

• No penalty payable, and all proceedings in respect of the SCN are deemed concluded.

• Section 74(8) - Fraud/Suppression Cases:

• If taxpayer pays the tax along with interest u/s 50 and a penalty of 25% of the tax amount within 30 days of the SCN issuance.

• Proceedings in respect of the SCN are deemed concluded.

• Section 74A(8) - Non-Fraud Cases under Section 74A:

• If taxpayer pays the tax along with interest u/s 50 within 60 days of the SCN issuance.

• No penalty payable, and all proceedings in respect of the SCN are deemed concluded.

• Section 74A(9) - Fraud/Suppression Cases under Section 74A:

• If taxpayer pays the tax along with interest u/s 50 and a penalty of 25% of the tax amount within 60 days of the SCN issuance.

• Proceedings in respect of the SCN are deemed concluded.

• Section 129(1) - For Goods Detained in Transit:

• If taxpayer pays the applicable tax, interest, and penalty within 7 days of the notice u/s129(3) but before the issuance of the final order.

• Proceedings are deemed concluded.

✓ Once the taxpayer makes the payment, they must inform the proper officer via Form GST DRC-03.

8. Form GST DRC-03A: Application for Adjustment of Payment Against Demand

✓ Filed by a taxpayer under Rule 142(2B) of the CGST Rules to request adjustment of a voluntary payment (via Form GST DRC-03) against an existing demand.

✓ Applicable when a taxpayer has already paid tax, interest, penalty, or other sums under Sections 52, 73, 74, 74A, 76, 122, 123, 124, 125, 127, 129, or 130 through Form GST DRC-03.

✓ Ensures proper crediting of the payment against the corresponding debit entry in the Electronic Liability Register (FORM GST PMT-01).

✓ Once submitted, the amount paid via Form GST DRC-03 is adjusted against the demand in FORM GST PMT-01, treating it as if paid on the date of intimation via Form GST DRC-03.

9. Form GST DRC-04: Acknowledgment of Voluntary Payment

✓ Issued by the proper officer as an acknowledgment of tax, interest, or penalty paid voluntarily through Form GST DRC-03 under various provisions of the CGST Act.

✓ Applicable under Rule 142(2) of the CGST Rules when a taxpayer makes a payment either on their own ascertainment or as communicated by the proper officer.

✓ Ensures formal recognition of the voluntary payment by the department.

✓ Issued electronically as an acknowledgment once the taxpayer informs the officer about the payment through Form GST DRC-03.

10. Form GST DRC-05: Closure of Proceedings

✓ Issued by the proper officer under Rule 142(3) of the CGST Rules to formally conclude proceedings when a taxpayer makes a payment of tax, interest, or penalty through Form GST DRC-03 in response to:

• A Show Cause Notice (SCN) under Section 73(8) or Section 74(8).

• A pre-SCN intimation under Form GST DRC-01A.

• Payment made under Section 129(1) for detained goods within 7 days of notice issuance.

✓ Ensures that no further action will be taken concerning the said notice once the payment is made and reported via Form GST DRC-03.

✓ Issued electronically as a confirmation of proceedings closure.

11. Form GST DRC-06: Filing of Reply to Show Cause Notice (SCN)

✓ Used by taxpayers to submit their reply to a Show Cause Notice (SCN) issued under various provisions of the CGST Act.

✓ Filed electronically under Rule 142(4) of the CGST Rules.

✓ Applicable for replies or representation against:

• SCNs issued under Section 73(9) or Section 74(9) or Section 74A(6) - The proper officer, after considering the reply, determines the tax, interest, and penalty due.

• SCN under Section 76(3) - Cases where tax has been collected but not paid to the government.

• Any other SCN whose summary has been uploaded electronically in Form GST DRC-01.

✓ Enables taxpayers to contest demands, provide explanations, and submit supporting documents before a final determination is made.

12. �Form GST DRC-07: Summary of Demand Order

✓ Used by the proper officer to electronically upload a summary of the demand order issued under various provisions of the CGST Act.

✓ Filed under Rule 142(5) of the CGST Rules, recording tax, interest, and penalty payable by the taxpayer.

✓ Applicable for demand orders under:

• Section 52 - Collection of tax at source (TCS).

• Sections 62 to 64 - Assessment of non-filers, unregistered persons, and summary assessment in special cases.

• Sections 73, 74, and 74A - Demand orders for non-payment, short payment, or erroneous refunds, with or without fraud.

• Sections 75 and 76 - General provisions relating to demand and recovery.

• Sections 122 to 127 - Various penalties under GST.

• Sections 129 and 130 - Detention, seizure, and confiscation of goods.

✓ Additionally, as per Rule 100 of the CGST Rules:

• Assessment orders under Sections 62, 63, and 64 are issued in Forms GST ASMT-13, ASMT-15, and ASMT-16, respectively.

• Their summaries are uploaded electronically in Form GST DRC-07.

✓ Ensures the taxpayer is informed of the final demand determination and the corresponding liability under the CGST Act.

13. Form GST DRC-07A: Recovery of Dues under Existing Laws

✓ Issued under Rule 142A(1) of the CGST Rules to electronically upload a summary of an order creating a demand for tax, interest, penalty, or other dues under existing laws (prior to GST).

✓ Applicable when dues under old laws remain unsettled and are recoverable under the CGST Act.

✓ The demand is posted in Part II of the Electronic Liability Register (FORM GST PMT-01) for recovery under GST.

14. �Form GST DRC-08: Rectification or Withdrawal of Order

✓ Issued by the proper officer under Rule 142(7) of the CGST Rules to electronically upload a summary of:

• Rectification of an order under Section 161 of the CGST Act.

• Withdrawal of an order previously uploaded on the system.

✓ Section161 permits rectification of errors apparent on the face of the record in any order, notice, or document.

✓ Ensures that corrections or modifications to an earlier order are officially recorded and communicated to the taxpayer.

15. Form GST DRC-08A: Modification or Adjustment of Demand under Existing Laws

✓ Issued under Rule 142A(2) of the CGST Rules to electronically update a demand recorded in Form GST DRC-07A when:

• It is rectified, modified, or quashed in any proceedings, including appeal, review, or revision.

• Recovery is made under existing laws (pre-GST).

✓ Updates are reflected in Part II of the Electronic Liability Register (FORM GST PMT-01).

✓ Ensures that changes to previously recorded demands are properly documented and reflected in the taxpayer’s liability records.

Recovery Proceedings

Once a demand is confirmed and remains unpaid, recovery actions are initiated under Section 79 of the CGST Act. The following DRC forms facilitate the recovery process in various ways.

16. FORM GST DRC-09: Recovery by Deduction from Money Owed

✓ The government can recover unpaid dues from a defaulter by deducting the amount from any money payable to them by government entities.

✓ Issued under Rule 143 of the CGST Rules read with Section 79(1)(a) of the CGST Act to to facilitate this recovery.

✓ The proper officer may instruct a specified officer—which includes officers of the Central or State Government, local authorities, or government-controlled entities such as a Board, Corporation, or company—to deduct the outstanding amount before making any payment to the defaulter.

✓ Ensures efficient recovery by adjusting dues against amounts payable to the taxpayer, such as refunds, subsidies, or contract payments.

17. FORM GST DRC-10: Notice for Auction of Goods or Conveyance

✓ There are several ways of recovering the government's dues from the defaulter. One such way is through the sale of the defaulter’s goods and conveyance that lie under the control of the proper officer.

✓ Issued when the proper officer initiates an auction for the recovery of outstanding dues by selling goods or conveyances under two scenarios:

• Rule 144 - Sale of goods under the control of the proper officer for tax recovery under Section 79.

• Rule 144A - Sale of goods or conveyances detained/seized during transit for non-payment of penalty under Section 129.

✓ The notice specifies the items to be auctioned and the purpose of the sale (either public auction or e-auction).

✓ Auction date or last day for bid submission cannot be earlier than 15 days from issuance of DRC-10, except for perishable or hazardous goods and conveyances, where the period may be shortened.

✓ If the defaulter clears the dues before DRC-10 is issued, the auction is canceled.

18. FORM GST DRC-11 - Notice to Successful Bidder

✓ Issued under Rules 144, 144A, and 147 of the CGST Rules

✓ Once the auction is completed, the proper officer issues DRC-11 to the highest bidder, instructing them to make the full payment within a specified period.

✓ The deadline for payment varies based on the applicable rule:

• Rule 144 & Rule 144A: Payment within 15 days from the date of auction.

• Rule 147: Payment within 15 days from the date of DRC-11 issuance.

✓ Failure to pay within the stipulated time may result in

• Forfeiture of any pre-bid deposit,

• Cancellation of the auction,

• Re-auctioning of the goods or property.

19. FORM GST DRC-12 - Certificate of Sale

✓ Issued under Rules 144, 144A, and 147 of the CGST Rules to certify the completion of a sale of goods or property for tax recovery purposes.

✓ Once an auction is successfully concluded and the highest bidder makes the full payment, the proper officer shall issue a certificate in FORM GST DRC-12 to certify the completion of the sale.

✓ Details in the certificate:

• Description of the property sold.

• Date of transfer.

• Bidder’s details.

• Amount paid for the property.

✓ Transfer of rights: Upon issuance of DRC-12, the rights, title, and interest in the property are transferred to the successful bidder. It serves as legal proof of ownership and finalizes the auction process.

✓ Applicable in the following cases:

• Sale of movable goods of a defaulter under Rule 144 (corresponding to Section 79) for tax recovery.

• Sale of detained or seized goods/conveyance under Rule 144A (corresponding to Section 129) due to non-payment of penalty.

• Sale of movable or immovable property of a defaulter under Rule 147 (corresponding to Section 79) for recovering outstanding dues.

✓ Post-issuance: The successful bidder assumes full ownership, and any statutory payments (like stamp duty or registration fees) become their responsibility.

20. �FORM GST DRC-13 - Notice to a Third Party for Recovery of Dues

✓ Issued under Section 79(1)(c) of the CGST Act and Rule 145 of the CGST Rules, to a third party who owes money to or holds money on behalf of a taxpayer in default.

✓ Purpose:

• Directs the third party (such as a bank, post office, insurer, or debtor) to remit the specified amount directly to the government instead of the taxpayer.

• The amount demanded should cover the outstanding tax dues, interest, and penalties.

✓ Obligations of the Third Party:

• Once DRC-13 is issued, the third party is legally bound to comply with the payment instructions.

• Failure to comply will result in the third party being treated as a defaulter under Section 79 and liable for recovery proceedings.

21. �FORM GST DRC-14 - Certificate of Discharge for Payment by a Third Party

✓ Issued under Rule 145 of the CGST Rules, when a third party complies with Form GST DRC-13 by paying the specified amount directly to the government in place of the taxpayer in default.

✓ Purpose:

• Serves as a certificate of discharge for the third party, confirming that the payment has been credited toward the taxpayer's outstanding liability.

• Provides proof that the third party has fulfilled its obligations under Section 79(1)(c) of the CGST Act and the third party is no longer liable to the taxpayer for that amount.

• Protects the third party from future claims by the taxpayer regarding the amount remitted to the government.

��22. FORM GST DRC-15 - Recovery through Execution of a Court Decree

✓ Issued under Rule 146 of the CGST Rules (read with Section 79 of the CGST Act).

✓ Applicable when a taxpayer (defaulter) is entitled to receive money under a civil court decree (e.g., judgment ordering payment or proceeds from a mortgaged property sale).

✓ Enables the government to recover outstanding GST dues from these amounts.

✓ The proper officer sends a request in FORM GST DRC-15 to the court, directing it to execute the decree and remit the recoverable amount to the government.

✓ The court, following the Code of Civil Procedure, 1908, processes the execution and credits the net proceeds toward settling the taxpayer’s liability.

23. �FORM GST DRC-16 - Order for Attachment & Sale of Property

✓ Issued under Section 79(1)(d) of the CGST Act read with Rule 147(1) & 151(1) of the CGST Rules, to recover unpaid GST dues.

✓ The proper officer may attach or distrain a taxpayer's movable and immovable property.

✓ The officer prepares a list of such assets, estimates their value, and issues an attachment or distrain order along with a notice in FORM GST DRC-16, prohibiting any transactions involving the property.

✓ A copy of the order is sent to the relevant Revenue or Transport Authority to place an encumbrance, which can only be removed through a written order from the proper officer.

24. ��FORM GST DRC-17 - Notice for Auction of Attached Property

✓ Issued under Section 79(1)(d) of the CGST Act read with Rule 147(4) of the CGST Rules, when a taxpayer fails to clear outstanding dues within 30 days of property distrain.

✓ The proper officer may proceed with its sale.

✓ The notice in FORM GST DRC-17specifies the details of the property to be auctioned, the purpose of the sale, and the auction process.

✓ The auction can be conducted via public auction or e-auction. In certain cases, negotiable instruments or shares may be sold through a broker.

✓ The proceeds from the sale are used to recover unpaid dues, with any surplus refunded to the taxpayer.

25. ��FORM GST DRC-18 - Certificate for Recovery through Land Revenue Authority

✓ Issued under Section 79(1)(e) of the CGST Act read with Rule 155 of the CGST Rules, to recover unpaid amounts from a taxpayer by involving the Collector, Deputy Commissioner, or any authorized officer of the district where the taxpayer owns property, resides, or conducts business.

✓ The proper officer sends a certificate in FORM GST DRC-18 specifying the amount due to the designated officer, who then recovers it as if it were an arrear of land revenue.

�26. FORM GSTDRC-19- Application to the Magistrate for Recovery as Fine

✓ Issued under Section 79(1)(f) of the CGST Act read with Rule 156 of the CGST Rules, for recovering an amount as if it were a fine imposed under the Code of Criminal Procedure, 1973.

✓ The proper officer files an application in FORM GST DRC-19 before the appropriate Magistrate.

✓ The application requests the court to recover the specified amount from the concerned person as if it were a court-imposed fine.

�27. FORM GST DRC-20 - Application for Instalment Payment

✓ Used by a taxable person to apply for an extension of time to pay outstanding tax dues or to request permission to pay in monthly instalments as per Section 80 of the CGST Act and Rule 158(1) of the CGST Rules.

✓ The application is filed electronically.

28. FORM GST DRC-21 - Order Granting Instalment Payment

✓ Before issuing an order, the Commissioner seeks a report from the jurisdictional officer to assess the taxpayer’s financial condition.

✓ If satisfied, the Commissioner issues order under Rule 158(2) of the CGST Rules, in FORM GST DRC-21, granting an extension of time or permitting payment in instalments (up to 24 months)

✓ The order is subject to applicable interest under Section 50 of the CGST Act.

�29. FORM GST DRC-22 - Provisional attachment of property

✓ FORM GST DRC-22 is used for the provisional attachment of property, including bank accounts, under Section 83 of the CGST Act and Rule 159 of the CGST Rules.

✓ When the Commissioner decides to attach a taxpayer’s property to protect the interests of revenue, they pass an order in this form, specifying the details of the attached property.

✓ A copy of FORM GST DRC-22 is also sent to the concerned Revenue Authority, Transport Authority, or any other relevant authority to place an encumbrance on the attached movable or immovable property.

30. FORM GST DRC-22A - Objection Against Provisional Attachment

✓ FORM GST DRC-22A allows a person whose property has been provisionally attached under Section 83 of the CGST Act, read with Rule 159 of the CGST Rules, to file an objection against the attachment.

✓ If the taxpayer believes that the attached property was not liable for attachment, they can file this form.

✓ The Commissioner, after affording an opportunity of being heard, may release the attached property by passing an order in FORM GST DRC-23.

31. FORM GST DRC-23 - Order for Release of Attached Property

✓ FORM GST DRC-23 is issued under Section 83 of the CGST Act, read with Rule 159 of the CGST Rules, for the release of provisionally attached property under the following circumstances:

a) When the attached property is perishable or hazardous, and the taxpayer pays an amount equivalent to its market price or the amount payable under GST, whichever is lower.

b) When an objection is filed in FORM GST DRC-22A and the Commissioner, after review, determines that the property was wrongly attached or is no longer liable for attachment.

c) When the Commissioner is otherwise satisfied that the attachment is no longer necessary.

32. FORM GST DRC-24- Intimation to Liquidator for Recovery of Tax Dues

✓ Form GST DRC-24 is issued under Section 88 of the CGST Act, read with Rule 160 of the CGST Rules, to intimate the liquidator about the tax liabilities of a company under liquidation.

✓ When a company is being wound up, the liquidator must inform the Commissioner within 30 days of their appointment.

✓ The Commissioner then conducts an inquiry to determine the amount required to cover the company’s tax dues and issues Form GST DRC-24 within three months of receiving the liquidator’s intimation.

✓ Form GST DRC-24 specifies the amount that must be set aside for tax settlement.

33. FORM GST DRC-25- Continuation of Recovery Proceedings

✓ Form GST DRC-25 is issued under Section 84 of the CGST Act, read with Rule 161 of the CGST Rules, to continue recovery proceedings when the demand amount changes due to an appeal, revision, or other proceedings.

✓ When any notice of demand is initially served on a taxpayer, and the taxpayer files an appeal, revision, or any other proceedings are initiated, the outcome of such proceedings may result in a modification of the original demand.

✓ Once the appeal, revision, or other proceedings are finalized, the impact on the demand amount determines the next course of action:

➣ If the demand is enhanced, the Commissioner issues a fresh notice of demand in FORM GST DRC-25 for the additional amount. Recovery proceedings resume from the stage they were at before the disposal of appeal or revision.

➣ If the demand is reduced, no new notice is issued. Instead, intimation in FORM GST DRC-25 is sent to the taxpayer, informing them of the revised demand. The recovery proceedings will continue only for the reduced amount from the stage they were at before the disposal of appeal or revision, and the appropriate authority handling the recovery is also informed accordingly.

Disclaimer: The information given in this article is solely for purpose of understanding the law. It is completely based on the interpretation of the author and cannot be constituted as a legal advise, the author of this article and Lawcrux team is not responsible for any legal issues if arises on the basis of the interpretation given above.