Form DRC-07 in GST: Summary of Order

Form DRC-07 serves as a vital link between taxpayers and tax authorities ensuring transparency, compliance, and fair resolution of any outstanding tax obligations.

What is Form DRC-07 in GST?

Form GST DRC 07 is a summary of the order issued by the Proper Officer, to be uploaded on the GST Portal. It specifies the amount of tax, interest, or penalty payable by the person chargeable with tax under Section 73(9), or Section 74(9) or Section 76(3) of CGST Act, 2017.

This form outlines the details of the demand and provides an opportunity for the taxpayer to respond or appeal against the demand.

Legal Framework of DRC 07 Summary Orders

Issuance of Form DRC-07:

Tax officers have the authority to issue Form DRC-07 when they identify unpaid tax liabilities based on their assessment and the responses filed by taxpayers in compliance with the show-cause notice.

Demand should be substantiated by valid reasons and calculations, clearly defining the nature of the demand and the period to which it pertains.

Time Limit for Issuance of Form DRC-07:

In response to the show cause notice, the taxpayer is required to frame a reply along with relevant supporting documents and the reply shall be filed via Form GST DRC-06 wherein he can also opt for a personal hearing.

After considering the reply filed by the taxpayer, the officer will issue an order in Form GST DRC-07.

Tax authorities should issue Form DRC-07 within the prescribed time limit upon identifying tax liabilities. This timeframe assists taxpayers in receiving timely notifications regarding their outstanding dues.

Communication to Taxpayer:

Upon issuance of Form DRC-07, tax authorities are required to send a copy of the form to the taxpayer's registered email address and their GST portal account.

Appeal Process:

In accordance with Section 107(1), any taxpayer or unregistered person who is aggrieved by a decision or order passed against them by the adjudicating authority can file an appeal to the appellate authority within three months from the date on which such decision or order is communicated to them.

Hence, if taxpayers disagree with the demand raised in Form DRC-07, they have the option to appeal the decision.

Filing of GST appeal:

To initiate an appeal, the appellant is required to submit Form GST APL-01 along with the necessary documents. Upon submission, a provisional acknowledgment will be promptly issued.

However, the final acknowledgment, which includes the appeal number, will be provided in Form GST APL-02 only after the manual submission of Form GST APL-01, a copy of the appealed order and a statement outlining the facts and grounds for the appeal, within seven days of receiving the provisional acknowledgment.

Key Components of DRC 07 Summary Orders

The DRC-07 form encompasses the following key points:

• Details of Order:
 Order number
 Order date
 Tax period

• Issues Involved: It outlines the specific issues involved, such as classification, valuation, rate of tax, suppression of turnover, excess input tax credit claimed, excess refund released, place of supply, and others

• Description of Goods/Services: This section includes the serial number, HSN code and description of the goods or services involved.

• Details of Demand: It specifies the amount of demand in the form of the tax, interest and penalty payable by the person chargeable with tax together with tax rate, turnover, tax period & place of supply.

FAQ’s

Q1. What is the essence of DRC 07 summary orders?
Ans. Form DRC-07 is a specialized type of demand summary order issued by tax authorities to taxpayers with significant tax liabilities.

Q2. Where is the designated location to submit Form DRC 07?
Ans. You can file on the GST portal. GST Portal -> My Application -> Form DRC-07

Q3. Can a DRC 07 summary order be issued without a show- cause notice?
Ans. No, a DRC 07 summary order cannot be issued without a show- cause notice.

Q4. Which section of the GST Act gives foundational pillars to DRC-07?
Ans. Section 73(9), or Section 74(9) or Section 76(3) of CGST Act, 2017 provides legal power to DRC-07.

Q5. What does DRC stand for in GST?
Ans. DRC stands for "Demand and Recovery Form" in GST.

Q6. Can a DRC 07 summary order be issued electronically?
Ans. Yes, a DRC 07 summary order can be issued electronically in the CBEC-GST portal.

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