DRC-13 is issued under Section 79(1)(c), Rule 145. 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-13 is a garnishee notice issued to a third party under Section 79(1)(c) of the CGST Act and Rule 145. The Proper Officer directs any person holding money on behalf of, or owing money to, the defaulter (typically a bank, debtor, or employer) to pay that amount directly to the government instead of the defaulter.
Legal Section
Section 79(1)(c), Rule 145
Response Window
As Specified in Notice
Reply Deadline
Comply or Dispute in Writing
Risk Level
High — Bank Account Freeze
Counter-Intimation
Form DRC-14
Issuing Authority
Proper Officer (Recovery)
Confirmed DRC-07 Remains Unpaid
After a demand is crystallised in DRC-07 and the appeal window has lapsed without a stay, the officer initiates third-party recovery against the defaulter's bank balances or receivables.
Direct Recovery Skipping Instalments
The taxpayer failed to comply with instalment terms granted under Section 80. The officer then proceeds straight to DRC-13 on the entire outstanding balance.
Interim Recovery During Investigation
In rare cases under Section 83, provisional attachment of bank accounts is done via a separate order — but DRC-13 follows once the assessment is finalised.
Recovery from Debtors / Clients
Where the defaulter has trade receivables, the officer can issue DRC-13 to each debtor directing them to remit the amount they owe the defaulter to the government.
Third-party recipient: verify the notice is genuine (DIN lookup on CBIC portal), confirm the amount actually owed to or held for the defaulter, and respond within the specified time.
If the amount held is less than the demand, remit what you hold and intimate the officer in writing. If no amount is held, file Form DRC-14 with a statement under oath denying liability.
Defaulter: on receipt of DRC-13 copy, immediately compute whether a full payoff under DRC-03 is feasible. Any payment stops further recovery action.
File appeal under Section 107 against the underlying DRC-07 if not already done; seek stay of recovery from Appellate Authority or move writ court if coercive action continues despite pending appeal.
Ask the officer to withdraw DRC-13 against banks if bank operations are critical to ongoing business — propose alternative security (fixed deposit, bank guarantee) under Rule 144A.
After recovery, verify that the remitted amount is credited against your liability on the GST portal (cash ledger) and that balance demand (if any) is correctly reflected.
Genuineness Check
Validates the notice against CBIC DIN lookup and cross-references the DRC-07 to confirm the demand chain is intact.
Third-Party Reply Drafting
Generates DRC-14 denial statements or DRC-13 compliance replies tailored to banks, employers, and trade debtors.
Stay Application Bundle
Compiles the full bundle — DRC-07 + DRC-13 + appeal memo + stay petition — ready for High Court filing when coercive recovery continues during appeal.
Upload your DRC-13 notice. AI drafts the reply, computes deadlines, and cites every applicable section and rule.
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