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DRC-01 is the electronic summary of a GST demand notice; DRC-07 is the electronic summary of the order that follows. DRC-01 normally calls for a notice-stage review and response. DRC-07 records the tax, interest and penalty found payable and has recovery significance under Rule 142. Neither form can be understood safely without the complete notice or order, its cited statutory section, the tax period and the date of service.
DRC-01 and DRC-07 at a glance
| Point of comparison | DRC-01 | DRC-07 |
|---|---|---|
| Procedural stage | Notice stage; a summary accompanies a covered notice. | Order stage; a summary is uploaded after adjudication. |
| What it communicates | Details of the amount and the case set out in the underlying notice. | Tax, interest and penalty determined as payable in the order. |
| What you should do first | Read the complete notice, check the calculation and prepare the prescribed response. | Read the complete order, check findings and immediately assess payment, rectification and appeal options. |
| Reply form associated with the route | DRC-06 is the Rule 142 reply or representation form for the applicable notice route. | No DRC-07 reply substitutes for an appeal or other remedy; the order and current law control. |
| Recovery effect | A DRC-01 summary by itself is not proof that a final demand has been adjudicated. | Rule 142(6) treats the order referred to in Rule 142(5) as the notice for recovery. |
The form number is a workflow cue, not a complete statement of your legal position. A DRC-01 can accompany notices issued under different provisions, and a DRC-07 can relate to different demand sections. Always match the form to the section cited in the document and to the law applicable to that tax period.
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What DRC-01 means
It is a notice summary, not the adjudicated demand
Rule 142(1) provides for an officer to serve an electronic summary in DRC-01 along with a notice under specified provisions, including sections 73 and 74 of the Central Goods and Services Tax Act. The summary states details of the amount payable at the notice stage. The underlying notice remains the document that explains the allegations, legal provision, proposed tax, interest and penalty, and the material relied upon.
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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteReceiving DRC-01 therefore means the department has communicated a proposed demand through a formal notice process. It does not, merely because the amount appears in a portal summary, establish that the amount is finally due or that the officer’s calculation is correct.
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What to read in the notice pack
- The statutory section cited and whether the notice is under section 73, section 74 or another provision.
- The tax period and the registration, return, invoice or transaction to which the allegation relates.
- The factual grounds, such as an alleged short payment, wrongful availment or utilisation of input tax credit, mismatch or non-payment.
- The separate components of tax, interest and penalty, including the calculation period and rate stated in the notice.
- The records and statements relied on, and any annexures or worksheets referred to but supplied separately.
- The response method, hearing instructions and deadline stated in the notice.
These checks are practical reading steps. The exact fields in a particular DRC-01 and the legal consequences of the notice depend on the provision and facts.
What DRC-07 means
It is the summary of an adjudication order
Rule 142(5) provides for electronic upload of an order summary in DRC-07 specifying the tax, interest and penalty payable. The full order should contain the findings, reasons, evidence considered, submissions dealt with and operative directions. DRC-07 is not a replacement for that reasoning.
Why its recovery wording matters
Rule 142(6) states that the order referred to in sub-rule (5) is treated as the notice for recovery. In practical terms, DRC-07 signals that the matter has moved beyond the initial notice into an order and recovery stage. Do not assume that uploading DRC-07 automatically resolves every question about limitation, stay, appeal or the amount ultimately collectible; those issues are governed by the order, the Act, the rules and any applicable appellate or recovery provisions.
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Checks to make as soon as DRC-07 appears
- Confirm that the complete signed or authenticated order is available, not just the summary.
- Compare the order’s tax, interest and penalty figures with DRC-07 and with the original notice.
- Check which submissions were accepted or rejected and whether the officer addressed your evidence.
- Record the date and method of service. Limitation and other procedural periods can depend on service and the applicable provision.
- Look for directions concerning payment, recovery, rectification, appeal or any adjustment of amounts already paid.
Where the related DRC forms fit
Rule 142 uses several forms around a demand proceeding. They are not interchangeable, and not every case uses every form.
DRC-01A: possible pre-notice intimation
Under Rule 142(1A), the proper officer may, before serving a section 73(1) or 74(1) notice, communicate an ascertained amount in Part A of DRC-01A. Under Rule 142(2A), the person may use Part B to make a submission against the proposed liability or to report a partial payment. The wording is permissive: DRC-01A is not a compulsory preliminary step in every matter. Its presence does not turn the later notice into an order.
DRC-02: summary of a statement
DRC-02 is the electronic summary of a statement under section 73(3) or section 74(3). Read the statement and its legal context; the form label alone does not tell you whether the case has been concluded or what remedy is available.
DRC-03 and DRC-04: payment and acknowledgement
DRC-03 is used to report payment. DRC-04 is the officer’s acknowledgement accepting payment in the circumstances described by Rule 142. Keep the payment challan, ledger entries and acknowledgement together, and verify whether the payment covers tax, interest, penalty or only a stated component.
DRC-05: conclusion after qualifying payment
Rule 142 describes DRC-05 as an order or intimation concluding specified proceedings after qualifying payment under the relevant provision and within the applicable period. The payment period and conditions differ by section and fact pattern, so do not apply a deadline from one type of proceeding to another.
DRC-06: reply or representation
DRC-06 is the reply or representation form identified by Rule 142 for the notice route. The applicable deadline is the one in the notice and governing law; there is no universal response period that can safely be inferred from the form name.
DRC-08: rectification or withdrawal summary
DRC-08 is used for a rectification or withdrawal summary in the circumstances specified by Rule 142(7). It does not by itself explain the correction. Read the rectification or withdrawal order and compare the revised figures with the earlier DRC-07.
What to do after receiving DRC-01
- Retrieve the complete record. Sign in to the GST Portal and locate the notice, DRC-01 summary, attachments and any preceding DRC-01A or related communication. Save the files and record when and how they were served.
- Identify the legal route. Note the cited section, tax period, registration and whether the document is a notice, statement or another communication. Do not rely on the form number alone.
- Reconcile the computation. Recalculate the proposed tax, interest and penalty from your returns, electronic liability ledger, invoices, credit records and payment evidence. Flag arithmetic errors and amounts already discharged.
- Test the factual allegations. For each ground, prepare the corresponding invoice, contract, return, e-way bill, reconciliation, payment proof or other contemporaneous record. Distinguish an allegation from an established fact.
- Prepare the response in the specified channel. Rule 142 identifies DRC-06 for the relevant reply or representation route. Follow the notice’s instructions for filing, attachments and hearing requests, and keep the acknowledgement number.
- Address each proposed component separately. State what you accept, what you dispute and why. Explain any partial payment without implying that an unresolved balance is admitted.
- Monitor for the order. A response does not close the matter automatically. Continue checking the portal and preserve proof of every submission and hearing.
What to do after receiving DRC-07
- Read the full order before deciding to pay or appeal. Identify the findings, statutory basis, tax period, confirmed tax, interest, penalty and treatment of amounts already paid.
- Check service and limitation dates. Record the date the order was made available or served according to the applicable rules. Do not calculate an appeal deadline from the DRC-07 upload date unless the governing law makes that date relevant.
- Compare order and summary. If DRC-07 does not match the operative part of the order, seek clarification promptly and obtain a corrected record where appropriate.
- Assess remedies. Determine whether rectification, withdrawal, payment, appeal or another statutory route fits the error. A disagreement with the merits is not always a rectification issue.
- Check recovery exposure. Because Rule 142(6) gives the order recovery significance, do not ignore a DRC-07 while considering options. Ask a qualified adviser to assess any stay, pre-deposit or recovery consequences that apply to your case.
- Preserve evidence. Keep the order, DRC-07, prior notice, reply, hearing records, payment documents and portal acknowledgements in one file.
Sections 73, 74, 74A and 76: why the section matters
Older explanations often discuss only sections 73 and 74. Current materials also refer to section 74A and consequential changes to rules and forms. A government-hosted compilation dated November 2025 includes section 74A references in Rule 142, while an older CBIC rules compilation amended through 1 January 2022 predates that provision. The practical consequence is that an explanation based solely on the older compilation may not describe every current proceeding.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchSection 74A does not automatically replace sections 73 or 74 for every earlier tax period or pending case. The applicable section depends on the facts, period, effective amendments and transitional provisions. Read the provision cited in your notice or order and verify the current central Act, rules and notifications before relying on any statement about penalty, limitation, payment concession or procedure.
The GST Portal’s appeal information identifies demand orders under sections 73, 74, 74A and 76 among appealable demand-order categories. That category listing does not determine your limitation date, pre-deposit, grounds, required forms or whether recovery is stayed. Those requirements must be checked for the specific order and current law.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common mistakes and how to avoid them
Treating DRC-01 as a final demand
Why it fails: DRC-01 is a summary accompanying a notice. Fix: respond to the underlying notice, challenge unsupported grounds and retain evidence of filing.
Assuming DRC-07 is only an informal reminder
Why it fails: DRC-07 summarizes an order, and Rule 142(6) links that order to recovery. Fix: review the full order immediately and assess remedies and recovery risk.
Using a deadline copied from another case
Why it fails: response, payment and appeal periods vary with the statutory route, tax period, service and current amendments. Fix: use the date and instruction in your document, then verify the governing provision.
Paying without allocating the amount
Why it fails: a payment may cover only a stated component or may be recorded differently from your expectation. Fix: identify whether it is tax, interest, penalty or partial payment and obtain the corresponding portal acknowledgement.
Ignoring section 74A transition issues
Why it fails: a post-2022 explanation may not fit a proceeding governed by later amendments, while a current reference may not apply retroactively to every period. Fix: match the section and effective date to the tax period and proceeding.
When professional help is sensible
A real notice or order can affect cash flow, recovery and appeal rights. A qualified Indian GST practitioner, chartered accountant or tax lawyer can check the complete record, reconcile the computation, identify the correct section, and advise on filing or payment choices. They should work from the actual notice, order, service proof and records rather than from DRC-01 or DRC-07 alone. No form number guarantees that a challenge will succeed or that recovery will be suspended.
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