A GST show-cause notice proposes a demand and gives you an opportunity to respond; a demand order records the tax officer’s decision after considering your response, if any. A notice is not itself a final demand order. Check the statutory section and tax period printed on the document: not every GST notice follows the same demand procedure.
Show-cause notice vs. demand order
| Feature | Show-cause notice | Demand order |
|---|---|---|
| Procedural stage | Proposes a case and invites an explanation. | Records the officer’s determination after considering the representation, if any. |
| What to do next | Review the allegations, evidence, calculations and response date; reply using the applicable procedure. | Review the reasons and confirmed amount; assess payment, any available correction route, or appeal. |
| Statutory safeguard | The notice sets out the proposed case. | For the covered demand process, the order cannot demand more than the notice or confirm a demand on grounds outside it. |
| Common electronic summary | DRC-01 summarizes specified notices. | DRC-07 summarizes specified orders. |
The CGST Act describes a notice as “requiring him to show cause as to why he should not pay the amount specified in the notice.” It also states that “The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice.” These are statutory provisions for the applicable demand process; check the provision cited in your own document. CGST Act text, sections 73 and 75
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How to identify the document and preserve your response time
- Read the complete document. Identify the issuing authority, statutory section, tax period, date and mode of service, response deadline, allegations, proposed tax, interest and penalty, and referenced evidence. Do not rely only on an electronic summary.
- Match each allegation to your records. Compare the notice and its calculations with returns, invoices, ledgers, payment evidence and relevant correspondence. Keep the notice, every attachment, portal records and proof of service.
- Prepare a point-by-point response. Address each factual allegation and calculation, attach relevant supporting records, and submit through the procedure applicable to that notice before the stated deadline. Rule 142 identifies FORM GST DRC-06 for a representation in the covered demand process. CGST Rules, rule 142
- Request a hearing where appropriate. Make the request in writing and retain evidence that it was submitted. Section 75 provides for a hearing when requested in writing and requires the order to state the relevant facts and the basis for its decision. CGST Act, section 75
- Track what happens next. Save the submitted response and proof of filing. If an order arrives, note when it was communicated and compare its reasoning and calculations with the notice.
What DRC-01, DRC-06 and DRC-07 mean
Under rule 142, electronic forms can accompany parts of the demand process: DRC-01 is a summary of specified notices, DRC-02 summarizes a statement, DRC-06 is used for a representation, and DRC-07 summarizes specified orders. These summaries do not replace the full notice or order. Read the underlying document, grounds, calculations and enclosures, and keep the service details. CGST Rules, rule 142
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If you receive a demand order, check the appeal deadline promptly
For a first appeal under section 107 of the CGST Act, the ordinary filing period is three months from communication of the decision or order. The Appellate Authority may allow a further month if satisfied that sufficient cause prevented filing within the ordinary period. Calculate from the actual communication date, not merely the date printed on the order, and get qualified help promptly if the deadline is close. FORM GST APL-01 is the appeal form identified in the CBIC appeal rules. CGST Act, section 107 CGST Rules, appeal forms
Section 107 also sets payment conditions, including requirements relating to admitted amounts and disputed tax. An appeal should not be assumed to automatically stay recovery; check the current statutory text and the figures that apply to your case before deciding what to pay or file. A disputed amount should not be paid or admitted by default without considering the facts and available advice.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Check the cited section and tax period
Do not assume every document called a GST notice is issued under section 73 or 74, or that those sections alone govern every current notice. The cited section and tax period affect which framework and deadlines need checking. Verify the current Act and applicable notifications for your case; the CBIC-hosted Act text linked above is served under an older bill-text path, so confirm that the relevant provisions have not since changed.
CBIC Circular 238/32/2024-GST discusses a section 128A waiver process for specified legacy section 73 cases. It is subject to the circular’s statutory conditions and is not a general waiver for all GST demands. CBIC Circular 238/32/2024-GST
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