GST Notice Reply & Litigation — DRC-01, ITC Mismatch, Audits & Appeals
A GST show cause notice is not a request — it is the department's draft of a demand order. Answered late or vaguely, it becomes DRC-07 with tax, interest and penalty. Answered properly, it can be dropped, reduced or settled. We draft replies that address every ground, and we stand before the officer when it matters.
The notices we defend every week
- DRC-01 (Show Cause Notice) under Section 73 / 74 / 74A — replied point-by-point in Form DRC-06 within the 30-day window, with reconciliations and case law.
- DRC-01C (ITC mismatch intimation) under Rule 88D — auto-generated when ITC claimed in GSTR-3B exceeds GSTR-2B beyond the threshold; only 7 days to reply.
- ASMT-10 (scrutiny discrepancy notice) — answered before it escalates into a full show cause notice.
- Summons & DGGI proceedings — investigation support, search & seizure matters, anti-evasion cases.
How a winning DRC-01 reply is built
- Read the notice like an examiner — reference number, tax period, section invoked (73 vs 74 changes everything), each ground and the computation annexure.
- Reconcile before you argue — GSTR-1 vs GSTR-3B for turnover gaps; GSTR-2B vs GSTR-3B (and purchase register) for ITC mismatch; e-way bill and e-invoice trails where relevant.
- Answer every ground, point by point — with invoices, payment proofs, vendor confirmations and the case law that fits (including High Court rulings that ITC cannot be denied merely for a GSTR-2A gap).
- Appear at the personal hearing — a written reply supported by in-person representation is treated very differently from an upload nobody explains.
Audits, assessments & appeals
We represent businesses in departmental GST audits, special audits and scrutiny assessments across Delhi, Noida and Greater Noida, and take up high-value Bihar GST matters — assessments, audits, ITC disputes and demand proceedings — with physical appearance before the authorities. When orders go wrong, we carry the matter to the Appellate Authority, the GST Appellate Tribunal (GSTAT) and High Court.
Prevention beats defence: our compliance management (return filing, reconciliations, e-invoice and e-way bill discipline, periodic health checks) is built so notices never surprise you. Registered on GeM or bidding for tenders? Clean GST compliance is a prerequisite — see our GeM & tender services.
The notice has a deadline. So should your response.
Frequently asked questions
What is the time limit to reply to a DRC-01 notice?
Normally 30 days from service of the notice, replied in Form DRC-06 on the GST portal. For the auto-generated DRC-01C (ITC mismatch intimation under Rule 88D), the reply window is only 7 days — act immediately.
What is the difference between Section 73 and Section 74 notices?
Section 73 covers non-fraud cases (lower penalty, longer settlement window); Section 74 covers fraud, wilful misstatement or suppression (higher penalty). From FY 2024-25, Section 74A consolidates these provisions. The section cited changes your defence strategy and settlement options.
Can ITC be denied only because it does not appear in GSTR-2A?
Courts including the Kerala High Court (Diya Agencies) have held that ITC cannot be denied solely because a transaction is missing from GSTR-2A, if the taxpayer proves genuine purchase, tax payment and possession of documents. A well-drafted reply with the right case law makes this defence.
Do you handle GST cases in Bihar?
Yes — we specifically take up high-value and complex Bihar GST matters: assessments, departmental audits, special audits, ITC disputes, demand proceedings and appeals, with physical representation before the authorities.