Assume that a person is liable for tax, interest, and penalties under section 73 or 74 of the CGST Act. In such cases, the officer will need to fill out Part A of Form GST DRC-01A with the specifics of the tax, interest, and penalty that he has determined.
FORM GST DRC-01A : Intimation of Tax Ascertained Payable
Under the CGST Act, Section 73 deals with cases of tax non-payment or underpayment without the intent or allegation of fraud. Section 74 deals with cases of tax evasion or underpayment to defraud the government. Below let’s have a look at DRC-01A in GST.
Why is Form DRC-01A in GST Being Issued?
Prior to the GST Rules, the proper officer had to issue a summary in Form GST DRC-01 or Form GST DRC-02, depending on the case, when issuing a notice or statement, indicating the specifics of tax payable. However, now that this new sub-rule has been added, the amount of tax, interest, and penalty due must be communicated to the taxpayer before the notice or statement is issued. As a result, rather than a show-cause notice, it is an intimation as per GST Registration Process.
Recent Developments of The Court on Form DRC-01A
Case: Shri Tyres Vs State Tax Officer[1]
The assessee was served with a section 73 order by the Competent Authority. The assessee filed a writ petition alleging that the procedure for issuing the impugned order was not followed, namely that the impugned order was not accompanied by Form GST DRC-01 and Form GST DRC-01A.
High Court’s Decision:
The Honorable High Court stated that the issuance of Form GST DRC-01 and Form GST DRC-01A is required by law under rule 142 of the CGST Rules, 2017. It wasn’t just a procedural necessity; it was evident that it would be a violation of the assessee’s rights.
As a result, the ruling was set aside, and the Competent Authority was ordered to restart the procedures and complete the exercise in accordance with the rules, particularly Rule 142.
M/S Nanhey Mal Munna Lal Versus State Of U.P.[2]
More recently, in this case the Allahabad High Court, presided over by Justice Surya Prakash Kesarwani and Justice Jayant Banerji, has decided that Form GST DRC-01A is a pre-show cause notice indication aimed at minimising litigation. inThe court stated that Section 74(1) of the CGST Act, read with Rule 142(1A) of the CGST Rules, intends to provide a pre-show cause notice opportunity to the dealer/assessee, through filing of the form in Part-A of GST DRC-01A, which will ultimately benefit both the assessee and the department, as well as reduce litigation, indicating the principles of natural justice at this stage.
Use our GST Calculator to determine the exact amount of GST to be paid before registering for GST.
How Should a Taxpayer Reply to a Notice Like This on Form DRC-01A?
A taxpayer can utilize the second section of Form DRC-01A, Part B, to inform the officer if he has made part-payment of the ascertained responsibility or if the liability is unacceptable to him after receiving notice in Form DRC-01A. If there are any submissions based on the above, they can also be communicated.
But to avoid all of this, a taxpayer should hire the services of the experts at Vakilsearch to ensure all their taxes are perfectly filed.
[1] W.P. No. 19756 of 2021 [2] 2022 LiveLaw (AB) 129What is the Format of Form GST DRC-01A?
To obtain the latest format of Form GST DRC-01A, you can follow these general steps:
Visit the GST Portal: Access the official GST portal (https://www.gst.gov.in/).
Login to Your Account: Log in to your GST account using your credentials.
Navigate to Forms: Once logged in, navigate to the “Services” tab and select “User Services.” From there, go to the “My Applications” option.
Access Form GST DRC-01A: Look for the specific option related to Form GST DRC-01A or any relevant appellate form. The forms are typically categorized, and you may find it under the “Appeals” or “Legal Services” section.
Download the Form: Click on the relevant form, and there should be an option to download the form in the required format (PDF or Excel). Ensure that you have the latest version of the form.
Check Instructions: Along with the form, there are usually instructions or a user manual provided by the GST department. It’s advisable to go through these instructions to fill out the form accurately.
Fill and Submit: Fill out the form as per the instructions and guidelines. Once completed, submit the form online through the GST portal.
| Remember, since forms and procedures may be updated periodically, it’s essential to verify the information from the official GST portal or seek assistance from GST experts. If you have specific questions or concerns related to Form GST DRC-01A, you can consult with a tax professional from Vakilsearch for guidance. |
What is the Purpose of Issuing Form DRC-01A?
Form DRC-01A is essentially a precursor to a formal GST demand notice. It’s a clear and upfront communication from the tax authorities detailing the exact amount of tax, interest, and penalties owed by a taxpayer. This advance notification gives taxpayers a heads-up about their potential liabilities, allowing them to either settle the dues or prepare a response before a formal notice is issued.
In essence, it’s a transparency measure designed to provide taxpayers with sufficient time to address their tax obligations.
FAQs
What is Online Form DRC-01A in GST?
Form DRC-01A is an intimation of tax ascertained payable under the CGST Act, which is used by the GST officer to communicate the details of tax, interest, and penalty to a person who is chargeable with tax, interest, and penalty under sub-section (1) of section 73 or 74 of the CGST Act.
How do you respond to the GST notice DRC-01A?
To respond to the GST notice DRC-01A, a taxpayer can use Part B of the form to communicate the details of part-payment of the ascertained tax liability or rejection of the ascertained tax liability with submissions supporting the rejection.
Who is responsible for receiving DRC 01 in GST?
. The proper officer is responsible for receiving DRC 01 in GST.
What is the difference between DRC 01 and DRC 01A?
The main difference between DRC 01 and DRC 01A is that DRC 01 is a summary of show cause notice, while DRC 01A is an intimation of tax ascertained payable.
What is DRC-03 in GST?
DRC-03 is used by a person chargeable with tax to inform the proper officer of the payment of tax and interest in accordance with the provisions of sub-section (5) of section 73 or tax, interest, and penalty in accordance with the provisions of sub-section (5) of section 74.
Who is responsible for receiving DRC 01 in GST?
The recipient of a DRC-01 (Demand and Recovery Certificate) in GST is the taxpayer who is alleged to have short-paid taxes, claimed excess input tax credit, or received erroneous refunds. It's a formal notice issued by the tax authorities detailing the outstanding amount payable.
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