Pre-notice intimation · Rule 142(1A)
GST DRC-01A and voluntary payment: your response kit
A DRC-01A tells you the tax, interest and penalty the officer has ascertained before any show cause notice. What you do next, and how soon, can change the penalty.
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What it is
DRC-01A is optional. The proper officer may, before serving a notice under section 73, 74 or 74A, communicate the details of tax, interest and penalty ascertained as payable in Part A of FORM GST DRC-01A. The word is "may": it replaced "shall" by Notification 79/2020-CT of 15 October 2020, and the reference to section 74A was added with effect from 1 November 2024.
CGST Rules, rule 142(1A), as amended by Notifications 79/2020-CT and 20/2024-CT · source listed below
The person may reply in Part B of DRC-01A. The rule fixes no time for this reply; the period is whatever the intimation states. Part C lets the officer accept the payment or the submissions.
CGST Rules, rule 142(2A) (Part C inserted by Notification 12/2024-CT) · source listed below
For section 74A cases, CBIC assigns the proper officer by the CGST amount: a Superintendent up to ₹10 lakh, a Deputy or Assistant Commissioner above ₹10 lakh up to ₹1 crore, and an Additional or Joint Commissioner above ₹1 crore (the IGST and combined limits are ₹20 lakh and ₹2 crore). The same officers are proper officers for DRC-01A.
CBIC Circular 254/11/2025-GST, paras 3 and 5.1 (Tables I-II) · source listed below
Your rights
You may reply in Part B and need not pay at this stage. If you accept the liability, paying before a notice is issued, and telling the officer, means no notice for the amount so paid, at the lowest penalty the section allows.
CGST Rules, rule 142(2A); CGST Act, sections 73(5)-(6), 74(5)-(6) and 74A(8)-(9) · sources listed below
Up to FY 2023-24, non-fraud (section 73): tax with interest under section 50 paid on your own ascertainment, with the officer informed, means no notice and no penalty. Within 30 days of the notice, no penalty either.
CGST Act, section 73(5)-(6) and (8) · source listed below
Up to FY 2023-24, fraud (section 74): paying before the notice needs tax, interest and a 15% penalty; within 30 days of the notice, a 25% penalty; within 30 days of communication of the order, a 50% penalty.
CGST Act, section 74(5)-(6), (8) and (11) · source listed below
FY 2024-25 onwards (section 74A): before the notice, nil penalty in non-fraud cases and 15% in fraud cases; within 60 days of the notice, nil in non-fraud and 25% in fraud; within 60 days of communication of the order in fraud cases, 50%.
CGST Act, section 74A(8)(i)-(ii) and (9)(i)-(iii) · source listed below
Payment is reported in FORM GST DRC-03 and acknowledged in DRC-04. Payment within the section 73(8), 74(8) or 74A windows is concluded by DRC-05. DRC-03A links a DRC-03 payment to an existing demand and is not available where a DRC-05 has already closed the matter.
CGST Rules, rule 142(2), (2B) and (3) · source listed below
There is no recovery during a search, inspection or investigation; you may pay voluntarily through DRC-03, and officers must tell you of that option.
CBIC Instruction 01/2022-23 · source listed below
Your duties
To get the benefit of paying before a notice, you must pay the tax and the interest payable under section 50 on the basis of your own ascertainment and inform the officer in writing; in fraud cases the 15% penalty is added.
CGST Act, sections 73(5)-(6), 74(5)-(6) and 74A(8)-(9) · sources listed below
Interest is payable under section 50 along with the tax. Our expert team confirms the amount before you pay.
CGST Act, section 50; sections 73(5), 74(5) and 74A(8)-(9) · sources listed below
What to do now
- Read Part A: the period, the tax, the interest and the penalty ascertained, and the date by which the officer wants a reply.
- Rebuild the figure from GSTR-1, GSTR-3B, GSTR-2B and your books before conceding anything.
- Compare the cost of paying now with contesting. The penalty depends on the financial year and on how soon you pay.
- File Part B with the reconciliation, or pay through DRC-03 and quote the payment in the reply.
- Keep the DRC-04 acknowledgement and the officer's Part C reply.
- Ask our expert team to review the figures before you pay.
These steps are practical suggestions from our expert team, not statements of law.
Documents to keep ready
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Key time limits
| For | Time limit | Provision |
|---|---|---|
| Reply to DRC-01A (Part B) | Time limitNo time fixed by the rule: the period stated in the intimation | Provision and sourceCGST Rules, rule 142(2A) |
| Show cause notice, section 73 (up to FY 2023-24) | Time limitAt least 3 months before the time limit for the order; the order within 3 years from the due date for furnishing the annual return for the financial year | Provision and sourceCGST Act, section 73(2) and (10) |
| Show cause notice, section 74 (up to FY 2023-24) | Time limitAt least 6 months before the time limit for the order; the order within 5 years from the due date for furnishing the annual return | Provision and sourceCGST Act, section 74(2) and (10) |
| Show cause notice, section 74A (FY 2024-25 onwards) | Time limitWithin 42 months from the due date for furnishing the annual return; the order within 12 months from the date of the notice, extendable by up to 6 months, before expiry, by the Commissioner or an officer senior to the proper officer and not below Joint Commissioner | Provision and sourceCGST Act, section 74A(2) and (7) |
| Notified extensions for earlier years | Time limitFor FY 2017-18, 2018-19 and 2019-20 the Government notified later dates for the section 73 order (Notifications 13/2022-CT, 09/2023-CT and 56/2023-CT); our expert team confirms the date for your year | Provision and sourceCGST Act, section 168A; Notifications 13/2022-CT, 09/2023-CT and 56/2023-CT |
The date or period stated in your own notice or order always applies.
What can happen next
- Pre-notice intimation of liabilityThe notice guide for the intimation itself.
- Show cause noticeIf the matter is not closed, the formal notice follows under Section 73, 74 or 74A.
- Order confirming the demandThe summary of the adjudication order; the remedy is an appeal under Section 107.
- DRC-03 payment (DRC-04, DRC-05)A voluntary payment is reported in DRC-03 and acknowledged in DRC-04; DRC-05 concludes it where the windows are met.
Read the full guide: DRC-01A Pre-Show-Cause Intimation: Is It Mandatory, How Long You Have and How to Reply
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Frequently asked questions
Is DRC-01A compulsory before a show cause notice?
No. Rule 142(1A) says the proper officer may, before serving the notice, communicate the ascertained tax, interest and penalty in Part A of DRC-01A. The word is "may"; it replaced "shall" by Notification 79/2020-CT of 15 October 2020.
How long do I have to reply to a DRC-01A?
The rule fixes no time for the reply in Part B. The period is whatever the intimation states, so read it and reply within it.
What is the penalty if I pay at the DRC-01A stage?
For FY 2024-25 onwards (section 74A), paying tax and interest before the notice means no notice and no penalty in non-fraud cases, and a 15% penalty in fraud cases. For earlier years, section 73 gives no penalty in non-fraud cases and section 74 a 15% penalty in fraud cases.
What if I pay after the show cause notice?
Up to FY 2023-24, no penalty in non-fraud cases and 25% in fraud cases if paid within 30 days of the notice, and 50% in fraud cases within 30 days of the order. From FY 2024-25 the windows are 60 days: nil or 25% from the notice, and 50% in fraud cases from the order.
How is a voluntary payment reported?
In FORM GST DRC-03, which the officer acknowledges in DRC-04. Payment within the section 73(8), 74(8) or 74A windows is concluded by DRC-05. DRC-03A links a DRC-03 payment to an existing demand.
Official sources
- CGST Rules 2017, rule 142 (notice and order for demand: DRC-01A, DRC-03, DRC-04, DRC-05)Read on 24 October 2026
- CBIC Circular No. 254/11/2025-GST, 27 October 2025: proper officers for section 74ARead on 24 October 2026
- CGST Act 2017, section 73 (demand, non-fraud, up to FY 2023-24)Read on 24 October 2026
- CGST Act 2017, section 74 (demand, fraud, up to FY 2023-24)Read on 24 October 2026
- CGST Act 2017, section 74A (demand, FY 2024-25 onwards)Read on 24 October 2026
- CBIC Instruction No. 01/2022-23 [GST-Investigation], 25 May 2022: no recovery during a search; voluntary payment in DRC-03Read on 21 October 2026
- CGST Act 2017, section 50 (interest on delayed payment of tax)Read on 24 October 2026
- Notification 13/2022-Central Tax, 5 July 2022 (section 168A: extension for FY 2017-18)Read on 24 October 2026
- Notification 09/2023-Central Tax, 31 March 2023 (section 168A: extension for FY 2017-18 to 2019-20)Read on 24 October 2026
- Notification 56/2023-Central Tax, 28 December 2023 (section 168A: extension for FY 2018-19 and 2019-20)Read on 24 October 2026
General information from the Acts, Rules, circulars and instructions named beside each point, not legal advice. The dates and periods stated in your own notice or order always apply. Our expert team can read your documents with you.