DRC-07: Summary of order — demand confirmed

Key facts

The summary of an adjudication order confirming a demand. There is nothing to reply to: the amount is posted to the electronic liability register and becomes recoverable, and the remedy is an appeal under Section 107 (or rectification under Section 161 for an apparent error).

Time allowed

What to do now

1. 1

   Read the order against the reply actually filed

   Check whether each ground was dealt with. An order that ignores submissions, or travels beyond the show cause notice, is vulnerable under Section 75(7).

2. 2

   Confirm a personal hearing was granted

   Section 75(4) requires a hearing where an adverse order is contemplated. A denial of hearing is a recognised ground for remand.

3. 3

   Decide between paying, rectification and appeal

   An error apparent on the face of the record can be rectified under Section 161 — apply within 3 months of the order (the officer's outer limit to rectify is 6 months from the order). Otherwise appeal under Section 107. Paying in full within the window below also reduces the penalty in fraud cases.

4. 4

   File APL-01 with the pre-deposit

   Pre-deposit: the admitted amount in full, plus 10% of the tax in dispute, capped at ₹20 crore under the CGST Act (₹40 crore per appeal for IGST) (Section 107(6), cap from 1 Nov 2024). Where the order demands only a penalty, the pre-deposit is 10% of the penalty (Finance Act 2025, from 1 Oct 2025). File within 3 months of communication of the order.

What an appeal contains

An appeal usually covers the points below. This is an outline, not a draft: our expert team writes it on your own records.

1. Reference: the DRC-07 order's reference number and date, your GSTIN and the period it covers.
2. The grounds on which you dispute the order, point by point, against the reply that was filed.
3. Evidence for each point: the returns, books and documents each answer relies on.
4. Where it is filed: APL-01 (appeal).
5. A request for a personal hearing, if you want to be heard before a decision.

If it is ignored

• Recovery under Section 79 may begin three months after service of the order (Section 78), and sooner if the officer records reasons.
• Missing the appeal window by more than one month leaves only writ remedies.

Other dates that follow from it

• Last date with condonation (Section 107(4))The Appellate Authority may admit an appeal one month after the three-month period, on sufficient cause. Nothing beyond that.
• Apply for rectification (Section 161)Only for an error apparent on the face of the record. The officer's own outer limit to rectify is 6 months from the order.
• Recovery may commence (Section 78)Three months from service, unless the officer requires earlier payment for reasons recorded.
• If the period is up to FY 2023-24: Pay with 50% penalty — fraud cases (Section 74(11))Up to FY 2023-24: tax, interest and a penalty of 50% of the tax, paid within 30 days of communication of the order, conclude the proceedings.
• If the period is FY 2024-25 onwards: Pay with 50% penalty — fraud cases (Section 74A)FY 2024-25 onwards: tax, interest and a penalty of 50% of the tax, paid within 60 days of communication of the order, conclude the proceedings (Section 74A(9)(iii)).

Official sources

Sources checked on 24 October 2026.

• CGST Act 2017, section 107 (appeals to the Appellate Authority) · read 24 October 2026
• CGST Rules 2017, rule 108 (filing an appeal in APL-01) · read 24 October 2026

Any provision named on this page but not listed here is to be confirmed by our expert team.

Frequently asked questions

Related guides

• DRC-13: Garnishee notice — recovery from a third person
• DRC-01: Show cause notice — demand of tax
• Show Cause Notice Under Section 73: Reply Steps and Time Limits
• Section 74A GST: Time Limit for Notice and Order (FY 2024-25 Onwards)
• GST Notices Explained: Every Common Form, What It Means and How Long You Have to Reply
• Where this sits: First appeal