The Goods and Services Tax (GST) system in India mandates strict compliance procedures. One essential part of GST enforcement is the Demand and Recovery (DRC) forms, which are used by tax authorities to raise demands, recover dues, and initiate legal action against taxpayers who default.

For aspiring Chartered Accountants (CAs), understanding the purpose and function of each DRC form is critical—not only for exams but also for real-world tax consultancy.

In this detailed guide, we’ll break down all 28 DRC forms under the GST regime, explaining their use, related sections, and how a CA should deal with them.

What Are DRC Forms in GST?

DRC Forms are official documents issued by the GST Department during adjudication and recovery proceedings. These forms help initiate communication between the tax authorities and the taxpayer in cases of:

  • Short payment of tax

  • Wrong availment of Input Tax Credit (ITC)

  • Tax evasion

  • Failure to file returns or pay dues

These forms are governed under Section 73, 74, 79, 129, and 130 of the CGST Act, 2017.

List of All 28 GST DRC Forms with Explanation

Below is a concise explanation of each DRC form and its purpose:

Form

Purpose
DRC-01 SCN for unpaid tax, interest, or penalty
DRC-01A Pre-SCN intimation; allows voluntary payment
DRC-02 Summary of SCN
DRC-03 Voluntary payment of tax, interest, penalty
DRC-04 Acknowledgment of payment made under DRC-03
DRC-05 Order for concluding proceedings if payment made
DRC-06 Reply to SCN
DRC-07 Summary of final order after hearing
DRC-07A Notice for demand under Rule 142A
DRC-08 Rectification of order (Section 161)
DRC-08A Amendment of order details
DRC-09 Recovery from a third party (e.g., bank/customer)
DRC-10 Auction notice for attached goods/assets
DRC-11 Notice to successful bidder in auction
DRC-12 Sale certificate to winning bidder
DRC-13 Notice to third party to pay dues of the defaulter
DRC-14 Certificate issued to third party for payment made
DRC-15 Application for compounding of offences
DRC-16 Attachment of property for recovery
DRC-17 Order for release of attached property
DRC-18 Certificate of payment of demand post-attachment
DRC-19 Application for withdrawal of proceedings
DRC-20 Decision on withdrawal application
DRC-21 Recovery through enforcement of bond
DRC-22 Certificate of enforcement of recovery
DRC-22A Details of recovery on movable/immovable property
DRC-23 Challan for deposit in recovery case
DRC-24 Intimation of adjustment against refunds

Key Sections of the CGST Act Related to DRC Forms

Section

Subject
73 Tax not paid or short paid (no fraud)
74 Tax not paid or short paid (fraud/willful misstatement)
79 Recovery of tax
129 Detention/seizure of goods in transit
130 Confiscation of goods or conveyances

Real-Life Case Example

Case: A business availed ineligible ITC by mistake.

  • The department sends DRC-01A (pre-SCN intimation).

  • The taxpayer agrees and voluntarily pays via DRC-03.

  • Payment acknowledged via DRC-04.

  • Case closed with DRC-05, and no penalty applied.

This shows how early resolution using DRC-03 can avoid legal battles.

Why DRC Forms Matter for Aspiring CAs

  1. High Exam Relevance: GST DRC topics are regularly asked in CA Final and Intermediate papers.

  2. Client Representation: As a CA, you’ll represent clients in SCN and recovery matters.

  3. Compliance Advisory: Knowledge of DRC forms helps in reducing client penalties.

  4. Litigation Support: Drafting replies for DRC-06 and handling hearings post DRC-07 is a vital skill.

Best Practices to Handle DRC Forms

  • Check the Timeline: Most forms require response within 15–30 days.

  • Maintain Proofs: All notices and payments should be documented.

  • Use the GST Portal: Always respond and pay via www.gst.gov.in.

  • Avoid Delay: Ignoring DRC forms may lead to recovery or auction (via DRC-10 to DRC-12).

  • Legal Drafting Skills: Learn to draft precise and factual replies to SCNs (DRC-06).

❓ Frequently Asked Questions (FAQs)

Q1. Can a taxpayer avoid penalty by voluntarily paying via DRC-03?
Ans: Yes. If payment is made before SCN, no penalty is imposed under Section 73. A 15% penalty may apply under Section 74 if paid before notice.

Q2. What is the difference between DRC-01 and DRC-01A?
Ans: DRC-01A is a pre-show-cause intimation allowing voluntary correction. DRC-01 is the official SCN initiating proceedings.

Q3. Can I reply to DRC-01 online?
Ans: Yes. You can file your reply through DRC-06 on the GST portal.

Q4. What happens after DRC-07 is issued?
Ans: It is the final demand order. If the amount is unpaid, recovery actions such as attachment or auction can begin.

Q5. Is DRC-03 used only for tax defaults?
Ans: No. It can be used for any voluntary payment including interest, penalty, or reversal of ITC.

Conclusion

As the backbone of the GST enforcement mechanism, DRC Forms are a must-know for any future Chartered Accountant. Whether you are preparing for your CA exams or aiming to practice as a GST consultant, understanding these forms helps you manage disputes, guide clients better, and maintain compliance with the law.

Stay updated, practice drafting replies, and always advise early resolution to avoid unnecessary litigation.