What is GST Form DRC-01A?

What is GST Form DRC-01A?

• GST Form DRC-01A is an kind of formal intimation form used by the GST dept in India to inform GST Taxpayers about any goods and Services tax, interest, or penalty section 73(1) or 74 of the CGST Act that has been ascertained as payable by them. GST Form DRC-01A is issued before a SCN is served on the goods and Services tax taxpayer, giving them an opportunity to respond to the proposed goods and Services tax liability before it is formally assessed.
• In summary we can say that Intimation of goods and Services Tax Ascertained Payable, and we can say that proper officer required to be communicated to the GST taxpayer initially before the GST notice or any kind of statement gets served.
• Goods and Services tax, interest, or penalty  Demand order not sustainable without issuance of Show Cause Notice & fair opportunity to respond to GST Taxpayers.

How to Respond to GST Form DRC-01A?

• After getting receipt of GST Form DRC-01A intimation, a GST Taxpayer may use the 2nd part of the said DRC-01A, i.e. Part B of above GST Form, to communicate to proper officer if proper officer has made only small part-payment of the determined GST liability or if GST liability is not properly acceptable by GST Taxpayers. Submissions based on the above, if any, can also be communicated.
• Filling in the details /information in GST FORM DRC – 01A made discretionary to the GST proper officer.
• In case any difference between GST liability declared in GSTR Return like GSTR-1/IFF & GST amount paid via GSTR Return like GSTR-3B/3BQ that more a pre-specified limit, Than GST Taxpayer will receive an intimation in Form DRC-01B. In those cases, it is compulsory to submit GST Form DRC-01B Part B to give required inform & reconcile the difference.

Objection on non-issue of GST FORM DRC-01A

• Objection on non-issue of GST FORM DRC-01A was hypertechnical, In case whole or entire goods and Services Tax amount was disputed by petitioner: High Court
• The need of issue of GST Form DRC-01A & GST Form DRC-01 & have been requirement of law which is included in GST Rule 142. It was not a mere procedural need & Honorable High Court stated that it would be tantamount to trampling the rights of the assessee. So, Honorable High Court held that order would be set aside & proper officer shall commence appropriate proceedings afresh & complete the exercise by adhering need more specifically requirements under rule 142 of the CGST Rules, 2017 : Honorable High Court.
• Show Cause Notice can’t be issued by Deputy Goods and Services Tax Commissioner when Form GST DRC-01A was already issued by Assistant Commissioner of Goods and Services Tax : Honorable High Court

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