DRC-07 is issued under Section 73(9)/74(9), Rule 142(5). This guide explains the legal basis, common grounds, procedural steps, and how GST Notice AI drafts your reply in under 60 seconds with relevant citations and defences.
Form DRC-07 is the Summary of Order issued under Rule 142(5) of the CGST Rules after adjudication of a Show Cause Notice (DRC-01) under Section 73 or 74. It formalises the tax, interest, and penalty confirmed by the adjudicating officer and creates an enforceable demand.
Legal Section
Section 73(9)/74(9), Rule 142(5)
Appeal Window
3 Months (Extendable 1 Month)
Reply Deadline
3 Months from Service
Risk Level
Very High — Becomes Recoverable
Appeal Form
Form APL-01
Issuing Authority
Proper Officer (Adjudicating Authority)
Confirmed Demand After DRC-01 Hearing
The adjudicating officer finds the taxpayer's reply to the DRC-01 Show Cause Notice unsatisfactory and confirms the tax proposed along with interest under Section 50 and penalty under Section 73(9) or 74(9).
Ex-Parte Order for Non-Appearance
If the taxpayer failed to respond to the SCN or did not appear for personal hearing despite reminders, the officer may pass an ex-parte order confirming the entire demand.
Partial Confirmation with Modified Demand
Officer accepts part of the reply and reduces the demand — DRC-07 reflects the revised amount which still needs to be paid or appealed against.
Penalty-Only DRC-07 under Section 122
Certain contraventions (e.g. issuing incorrect invoice, non-issuance of e-way bill) can attract a standalone DRC-07 for penalty under Section 122 without any tax demand.
Verify the DRC-07 matches the underlying DRC-01 / Section 74 proceedings. Check notice number, DIN, date of order, and officer details.
Reconcile the confirmed amount — tax + interest + penalty — against the figures in the Show Cause Notice. Identify any new additions made at the order stage without a fresh SCN (grounds for appeal).
Decide: pay under protest, file appeal under Section 107 via Form APL-01, or pursue rectification under Section 161 if there is an apparent error.
If appealing: deposit 10% of disputed tax (pre-deposit) within 3 months from date of service. Draft grounds of appeal citing violation of natural justice, incorrect application of law, or factual errors.
File APL-01 electronically on the GST portal along with the appeal fee, supporting documents, and a certified copy of DRC-07. Maintain acknowledgment of filing.
Track the appeal — if Appellate Authority confirms the demand, the next forum is GSTAT (Section 112) or High Court (writ/appeal under Section 117).
Pre-Deposit Calculator
Compute the exact 10% pre-deposit under Section 107(6) including correct treatment of admitted vs disputed tax — and auto-generate the DRC-03 payment linkage.
Grounds of Appeal Drafting
AI drafts grounds of appeal citing procedural lapses (natural justice, SCN-order mismatch), substantive defences (Section 16 conditions, time-bar), and applicable precedents.
Deadline Watchdog
Tracks the 3-month appeal window with escalating WhatsApp and email alerts at 45, 30, 15, 7, and 1 day before expiry.
Upload your DRC-07 notice. AI drafts the reply, computes deadlines, and cites every applicable section and rule.
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