05 June 2020
Dept.has issued DRC01 for non payment of interest for FY 17-18.Now dept.has issued interest notice for 2018-19 also in form DRC01.Should the interest notice be issued for 18-19 in DRC02(statement in lieu of DRC01) or in DRC01?
09 July 2024
In the context of GST compliance, the Directorate of Revenue Intelligence (DRI) and the issuance of DRC-01 and DRC-02 forms, here’s how they generally apply:
1. **DRC-01 (Demand Notice):** - DRC-01 is issued for demanding payment of outstanding tax, interest, penalty, or any other dues. It is typically used for the initial demand notice. - If the interest notice for FY 2018-19 is related to a new demand or additional interest that was not covered in the previous notice for FY 17-18, it should ideally be issued under DRC-01.
2. **DRC-02 (Statement in lieu of DRC-01):** - DRC-02 is used for subsequent communications related to the same demand or adjustments to the original demand. - If the interest for FY 18-19 is part of the same overall demand or is an adjustment to the previous demand, it may be issued under DRC-02.
**Decision Criteria:** - **New Demand:** If the interest notice for FY 18-19 represents a new demand or has significant changes that were not addressed in the previous communication (DRC-01 for FY 17-18), it should be issued under DRC-01.
- **Adjustment or Follow-up:** If the interest notice for FY 18-19 is related to the same demand and involves adjustments, follow-ups, or updates to the original demand, it may be issued under DRC-02.
**Consultation and Action:** - It’s advisable to consult with a tax professional or a GST consultant who can review the specific details of both notices (DRC-01 for FY 17-18 and the new interest notice for FY 18-19) to determine the appropriate course of action. - Ensure that responses to these notices are timely and accurate to avoid any penalties or further complications.
By understanding the purpose and usage of DRC-01 and DRC-02 forms, you can better navigate the compliance requirements set forth by the GST department regarding interest demands and other dues.
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