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DRC-07 Order Issued

02 November 2020

The State Tax Officer has ordered DRC-07 and demand ₹ 6420 each CGST& SGST Tax Respectively and ₹ 6420 each in CGST& SGST Penalty.What is the basis of this order?.How can paid this tax and penalty?

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 02 November 2020

As per Rule 142(6) , DRC 07 is order for recovery.

The DRC 07 is issued when SCN issued in form DRC 01 has been issued & the concern person has not made the payment in form DRC 03 or made short payment or not given the satisfactory explanation in DRC 06 , then proper officer issue DRC 07 stating the amount of demand & due date for making the payment of taxes along with interest & penalty.

Hence Deposit the tax & file DRC 03.

Note : As per Notification 49/2019 CT , the sub rule( 1A) under rule 142 being inserted , stating that , the proper officer shall before service of Notice u/s 73, 74 ,shall communicate the details of tax, interest & penalty as ascertain by officer in Part A of form DRC 1A

Hence if it is not done , can file appeal against the same & the Order can litigated & can quashed.