Published 13 October 2026
A show cause notice under GST tends to arrive as two documents with a deadline that looks short. One is the notice itself, often with annexures. The other is a one-page summary in FORM GST DRC-01. The reply has to go in on FORM GST DRC-06, a form with one text box and a list of documents. The hearing that follows may be fixed, adjourned, or never offered unless asked for. The order must be passed within a time limit that depends on the financial year and on whether fraud is alleged. Each of these steps has rules. Most disputes that reach the High Courts turn on one of them, not on the tax.
This guide covers the notice, the reply, the hearing and the time limit for the order. The law on sections 73, 74 and 74A is in Notices and Demands: DRC-01A, DRC-01, and Sections 73, 74 and 74A. Settling before or soon after the notice is in Before a Notice: DRC-01A and Paying Voluntarily.
What arrives: the notice and DRC-01
Rule 142(1) requires the proper officer to serve, “along with the … Notice issued under section … 73 or section 74 or section 74A … a summary thereof electronically in FORM GST DRC-01”. A notice extending an earlier one to other periods is a “statement” under sub-section (3) of each section, served with a summary in DRC-02.
DRC-01 states:
- the Act and the “Section / sub-section under which SCN is being issued”;
- the SCN reference number and date;
- the tax period and financial year;
- “Brief facts of the case” and “Grounds”;
- a table of tax, interest, penalty, fee and other amounts by Act, period and place of supply.
The portal’s FAQ says the person receives “SCN under section 73, 74 and/or 74A, Summary of notice in Form GST DRC-01 generated by system and annexure uploaded by officer”.
DRC-01 is a summary. It does not replace the notice. CBIC’s Instruction No. 04/2023-GST of 23 November 2023 records that some field formations were “serving such notices and orders manually only”. It directed officers to serve the DRC-01 summary electronically, calling non-issuance “in clear violation of the explicit provisions of CGST Rules”. The opposite failure, a DRC-01 with no notice behind it, is discussed in The Order, Rectification, and the Clock for Appeal.
Reading the notice: which section, which officer
The section. The financial year decides the regime. Sections 73 and 74 cover years up to 2023-24 (sub-section (12) of each). Section 74A covers 2024-25 onwards. Under sections 73 and 74, the section itself turns on whether fraud, wilful misstatement or suppression is alleged. Under section 74A, the allegation decides only the penalty, in sub-section (5).
Where fraud or suppression is alleged, the notice itself must say why. G.R. Infra Projects Ltd v State of Madhya Pradesh (Supreme Court, Civil Appeal No. 11277 of 2026, order of 19 August 2026, J.B. Pardiwala and K. Vinod Chandran JJ). A section 74 notice for 2018-19 was issued on 13 June 2025, after summons, an inspection and a DRC-01A. The section 73 limit had expired, so the notice stood only if section 74 applied. It said no more than “fraud or concealment of facts”. The State sought to explain the allegation in its counter affidavit. The Court refused to look at the counter affidavit. The allegations leading to an inference of fraud or suppression “should emanate from the notice itself”. The extended period cannot rest on “a mechanical use of the words”. The notice was quashed. The order is not on gst.bharattax.net, which carries High Court decisions. It was read from the Supreme Court’s signed order as published on Indian Kanoon.
The officer. For central tax, CBIC has fixed which rank adjudicates by the amount of tax: Circular No. 31/05/2018-GST, as amended, for sections 73 and 74, and Circular No. 254/11/2025-GST of 27 October 2025 for section 74A. The limits are the same under both:
| Officer of central tax | Central tax (with cess) | Integrated tax (with cess) | Central and integrated together |
|---|---|---|---|
| Superintendent | Up to Rs 10 lakh | Up to Rs 20 lakh | Up to Rs 20 lakh |
| Deputy or Assistant Commissioner | Above Rs 10 lakh to Rs 1 crore | Above Rs 20 lakh to Rs 2 crore | Above Rs 20 lakh to Rs 2 crore |
| Additional or Joint Commissioner | Above Rs 1 crore | Above Rs 2 crore | Above Rs 2 crore |
Circular 254 clarifies that the combined amount decides where both central and integrated tax are demanded, and that penalties are excluded from the calculation. State tax officers act under their own State’s orders.
Time to reply
Neither the Act nor rule 142 fixes a period for the reply. The notice states it, and the portal records it as the due date. The portal’s FAQ says up to three reminders may follow before the status becomes “Reply not furnished, pending for order”.
The payment windows run alongside the reply:
- Sections 73 and 74. Payment of tax and interest within thirty days of issue of the notice concludes the proceedings with no penalty under section 73(8). Under section 74(8), the same window applies with a 25 per cent penalty.
- Section 74A. Sections 74A(8)(ii) and (9)(ii) give sixty days, on the same terms.
Payment is intimated in DRC-03. The officer then issues DRC-05, an “intimation … concluding the proceedings” under rule 142(3). The portal’s DRC-03 FAQ says that it does not accept part payment of the amount in a notice.
What to have ready
| Item | Where it comes from |
|---|---|
| The notice, its annexures and relied-upon documents, and DRC-01 | Portal, NOTICES tab |
| Any earlier DRC-01A and the Part B reply; scrutiny or audit papers | Portal; departmental correspondence |
| The due date of the annual return for the year, and the date of the notice | Notification; the notice |
| Returns for the period: GSTR-1, GSTR-3B, GSTR-9 and GSTR-9C | Portal |
| Books, invoices, contracts, e-way bills, payment records and reconciliations for each ground | The books |
| DRC-03 payments already made on the same issue | Portal |
| Any decisions relied on, and the provisions in force for the period | Primary sources |
The reply: DRC-06
Rule 142(4) provides that “the reply to any Notice issued under any section whose summary has been uploaded electronically in FORM GST DRC-01 … shall be furnished in FORM GST DRC-06”. The form has:
- the GSTIN and name;
- the notice reference and date;
- the financial year;
- the reply, as a text box;
- a list of the documents uploaded;
- an option for personal hearing, “Yes” or “No”;
- a verification by the authorised signatory.
What the reply can and cannot achieve. Section 75(7) confines the order to the notice. The amount “shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice”. The reply meets each ground in the notice. The officer cannot add new ones in the order.
Portal steps. The portal’s manual on “Filing response to Intimation/Notice/Statement for proceedings related to Determination of Tax” describes the steps:
- Go to Services > User Services > View Notices and Orders, and click View on the case.
- The notice is in the NOTICES tab. Under REPLIES, click ADD REPLY and select REPLY.
- Type, date of notice, reference number and year fill in. Enter the reply and upload supporting documents. Uploads are not mandatory.
- “Personal Hearing Required?” is answered Yes or No. The manual notes that this toggle “is visible to only those taxpayers where the A/A has not called for a personal hearing in the issued notice”.
- Select the verification and the authorised signatory, preview, and file with DSC or EVC.
- The status becomes “Reply furnished, Pending for order by tax officer”. An acknowledgement is sent by email and SMS.
The hearing: section 75(4)
An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.
The two limbs are alternatives. A request triggers a hearing. So does a contemplated adverse decision, even without a request.
Bharat Mint and Allied Chemicals v Commissioner Commercial Tax (Allahabad High Court, Writ Tax No. 1029 of 2021, 4 March 2022; read on Indian Kanoon, not found on gst.bharattax.net). The notice under section 74 for April 2019 invited the person to appear “on the date, time and venue, if mentioned in the table below”. The table gave none. The department’s counter affidavit said no hearing was required, and admitted that none was given. The Court held that section 75(4) “specifically mandates for opportunity of hearing before passing the order” where an adverse decision is contemplated. It quashed the order despite the alternative remedy of appeal, and imposed costs of Rs 10,000.
The hearing must also be real. In Avik Televentures Private Limited v Office of the GST Officer, Ward 71 (Delhi High Court, W.P.© 2339/2026, 30 March 2026), the petitioner had replied to the notice. At 5.20 pm on a Saturday, the officer called for voluminous further documents within one working day and fixed a hearing the day after. The order was passed on the last day of limitation. The Court held that the opportunity “is not a mere formality but must be real, reasonable and effective”. Attending the hearing did not make it so. The order was quashed and the matter remanded.
Adjournments: section 75(5)
The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded in writing: Provided that no such adjournment shall be granted for more than three times to a person during the proceedings.
Three points follow from the words:
- An adjournment depends on “sufficient cause” being shown.
- The officer records reasons in writing.
- The cap is three adjournments “during the proceedings”, not three per hearing.
The portal’s FAQ says an adjournment after the notice is sought “by filing application of extension offline”. If granted, the officer updates the new date on the portal, in the NOTICES tab. If refused, the person must reply or attend on the date fixed.
The order must give reasons
Section 75(6) provides that “the proper officer, in his order, shall set out the relevant facts and the basis of his decision”. In Tata Motors Limited v Goods and Service Tax Officer (GSTO), Ward 203 (Delhi High Court, W.P.© 8105/2024, 29 May 2024), the person had filed a detailed reply under each head of the notice. The order recorded only that the reply was “not satisfactory”. The Court held that the officer “had to at least consider the reply on merits and then form an opinion”, and set the order aside.
Time limits for the order
| Regime | Notice must issue | Order must issue |
|---|---|---|
| Section 73 (to 2023-24, no fraud) | At least three months before the order deadline (s.73(2)) | Within three years of the due date of the annual return for the year, or of the erroneous refund (s.73(10)) |
| Section 74 (to 2023-24, fraud) | At least six months before the order deadline (s.74(2)) | Within five years of that date (s.74(10)) |
| Section 74A (2024-25 on) | Within forty-two months of that date (s.74A(2)) | Within twelve months of the notice (s.74A(7)). The Commissioner, or an officer he authorises who is senior to the proper officer and not below Joint Commissioner, may extend this by up to six months. Reasons must be recorded in writing before the twelve months expire. |
Three provisions affect these limits.
- Deemed conclusion. Under section 75(10), if the order is not issued within the period in section 73(10), 74(10) or 74A(7), “the adjudication proceedings shall be deemed to be concluded”.
- Stays. Under section 75(1), a period during which a court or the Appellate Tribunal has stayed the notice or order is excluded.
- Remands. Under section 75(3), an order on remand must be issued “within two years from the date of communication of the said direction”.
For 2017-18 to 2019-20, the section 73 limits were extended under section 168A. Notification No. 9/2023-Central Tax extended 2017-18 to 31 December 2023. Notification No. 56/2023-Central Tax extended 2018-19 to 30 April 2024 and 2019-20 to 31 August 2024. The validity of these extensions has been contested, and the commentary on section 73 records the decisions.
Who signs
DRC-06, adjournment requests and any further submissions are signed by the authorised signatory and filed with DSC or EVC. Where the notice also names other persons as liable to penalty, each of them may reply. Under Explanation 1(ii) to section 74, and the matching Explanation to section 74A, proceedings against them are deemed concluded once those against the main person are concluded under the section.
Rights and duties at each step
- On the notice. The person is entitled to know the grounds and, in a fraud case, the facts said to show it, from the notice itself. He may pay within the window, or reply.
- On the reply. He may ask in writing for a hearing, and is entitled to one if an adverse decision is contemplated.
- On adjournment. He may seek time for sufficient cause, up to three times in the proceedings.
- On the order. He is entitled to an order that sets out facts and reasons, keeps within the notice, and is issued in time.
What can still be put right
- Before the due date. Further documents can be added, and an accepted portion paid through DRC-03.
- After the reply. Further submissions and documents can be placed at the hearing.
- After the order. The remedies are rectification, appeal, and the reduced penalty for fraud cases under section 74(11) or 74A(9)(iii). They are covered in the next guide.
The steps in order
- Download the notice, its annexures and DRC-01. Note the date of issue, the reply date and any hearing date.
- Identify the year and the section. Check that the notice was issued in time, and the date by which the order must issue.
- If fraud or suppression is alleged, identify the facts in the notice said to show it.
- Decide what, if anything, to pay within the thirty-day or sixty-day window. Pay it through DRC-03.
- Prepare a reply ground by ground, with documents. File it in DRC-06 and select “Yes” for a personal hearing.
- Attend the hearing. If time is needed, apply for an adjournment, showing cause. No more than three adjournments are allowed.
- Watch the ORDERS tab for the order and DRC-07, or for an order dropping the proceedings.
The next guide covers the order itself: DRC-07, rectification under section 161, and the time for appeal.