DRC-01 Notice - What it Means

What does DRC-01 mean?

This is a formal Show Cause Notice - the most serious notice type. The department believes you owe tax and is giving you a chance to explain before issuing a final demand. Section 73 is for non-fraud cases (lower penalty). Section 74 is for fraud/willful suppression (heavy penalty). Section 74A (from April 2025) replaces both with a unified provision.

What happens if you ignore it

How to respond

The official response form is: DRC-06 on GST portal or physical reply.

• Read the notice carefully and confirm the GSTIN, financial year, and amount match your records.
• Check the underlying mismatch or filing in the GST portal before drafting your reply.
• If the demand is correct, pay via DRC-03 and file the response acknowledging it.
• If the demand is wrong, file the response with supporting documents and reasoning.
• If you are unsure, get a CA to review the notice before the deadline.

Quickest way to handle this

Forward your notice photo to Fylo on WhatsApp. You'll get a personalised explanation referencing the specific amounts, dates, and GSTIN on your notice, plus a draft reply you can copy-paste or hand to your CA - in your preferred Indian language. Free.