Serving of DRC-01 and uploading of DRC-07 electronically- CBIC instructions

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The CBIC issued Instruction No. 04/2023-GST dated November 23, 2023, regarding the serving of the summary of notice in FORM GST DRC-01 and uploading of the summary of order in FORM GST DRC-07 electronically on the portal by the proper officer.

Reference is invited to the provisions of section 52, section 73, section 74, section 122, section 123, section 124, section 125, section 127, section 129 and section 130 of Central Goods and Service Tax Act, 2017 as per which a notice is required to be issued by the proper officer to a person for demand and recovery of any amount of tax not paid or short paid/ amount of input tax credit wrongly availed/ amount of refund erroneously made, for recovery of interest and/ or for imposition of any penalty or fine on the said person.

Further, a summary of such order is also required to be uploaded electronically on the portal by the proper officer in FORM GST DRC-07, specifying the amount of tax, interest and penalty, as the case may be, payable by the person concerned.

In the above instruction, the proper officers have been accordingly directed to ensure that summary of the notices issued under section 52 or section 73 or section 74 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act are served, electronically on the portal in FORM GST DRC-01. 

Also, it should be ensured that summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act 2017 is uploaded electronically on the portal in FORM GST DRC-07.

It is important to note that as per sub-rule (5) of rule 142 of CGST Rules 2017, such communication is to be uploaded mandatorily,  electronically on the portal by the proper officer.

Non-issuance of the summary of such notices/ orders electronically on the portal will be clear violation of the explicit provisions of CGST Rules. 

Manual service alone appears not acceptable.

Well.....

These instructions will lead to transparency in tax administration as envisaged by the GST laws and not only makes the said notices/ orders available electronically to the taxpayers on the portal, but also helps in keeping a track of such proceedings and consequential action in respect of recovery, appeal etc, seamlessly.


R.SRIVATSAN

NACIN, Chennai

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