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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsA GST show-cause notice proposes a demand and gives you an opportunity to respond; a demand order records the officer’s decision after considering your representation, if any. A notice is not the same as a finalized demand. If you receive either document, first identify its statutory section, tax period, service date, and deadline—the applicable process depends on those details.
How a show-cause notice differs from a demand order
| What to compare | Show-cause notice | Demand order |
|---|---|---|
| Procedural stage | Proposes a case and invites you to explain why the specified amount should not be paid. | Records the adjudication after considering your representation, if any. |
| Immediate task | Review the allegations, evidence, calculations, and response deadline; submit a response under the applicable procedure. | Review the decision and confirmed amount; assess payment, any available statutory options, or an appeal. |
| Limits on the decision | Sets out the proposed case. | Under the CGST Act, the order cannot demand more than the amount in the notice or confirm a demand on grounds outside it. The order must set out relevant facts and the basis for the decision. |
| Common electronic summary in the covered process | DRC-01 summarizes specified notices. | DRC-07 summarizes specified orders. |
The CGST Act describes a notice as “requiring him to show cause as to why he should not pay the amount specified in the notice.” It also provides that “The amount of tax, interest and penalty demanded in the order 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.” See the CBIC-hosted CGST Act text; check the current applicable Act and amendments before relying on a provision.
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Identify exactly what you received
Do not assume that every document described as a “GST notice” follows the same demand route. Read the document itself, including any electronic summary, attachments, and referenced correspondence. Record:
- The issuing authority and statutory section cited.
- The tax period and allegations.
- The date and mode of service, along with the stated response date.
- The proposed tax, interest, and any penalty, including how each amount was calculated.
- The evidence or records the officer relies on and any enclosures or portal links referenced.
Rule 142 of the CGST Rules describes DRC-01 as a summary for specified notices and DRC-07 as a summary for specified orders. Treat these as summaries, not substitutes for the full notice or order: examine the complete grounds, calculations, enclosures, and service details. Rule 142 also identifies DRC-02 as a summary of a statement and DRC-06 for a representation in the covered process. See the CBIC-hosted CGST Rules.
What to do after receiving a show-cause notice
- Secure the record. Save the notice, all attachments, the electronic summary, portal records, related correspondence, and proof of when and how the document was served.
- Check the deadline and legal route. Note the response date and the section and tax period on the notice. Verify the current statutory text and any applicable notifications; do not infer the deadline or procedure from a different notice.
- Test each allegation against your records. Compare the officer’s facts and computations with returns, invoices, ledgers, payment evidence, and relevant correspondence. Identify which points are disputed, which are factual errors, and which records support your position.
- Prepare a point-by-point response. Address each allegation and calculation with the relevant facts and supporting documents. In the covered Rule 142 process, DRC-06 is the form identified for a representation. Follow the procedure applicable to your actual notice and retain proof of submission.
- Request a hearing when appropriate. If you want one, make the request in writing and keep evidence of it. Section 75 provides for a hearing when requested in writing and requires the order to state relevant facts and the basis of the decision.
A payment or closure route may be available in some circumstances, but whether to pay, dispute, or use a statutory option depends on the notice, facts, and applicable provision. Do not treat payment or admission of a disputed amount as the default response; get qualified advice where needed.
What to check when a demand order arrives
Compare the order with the notice and your response. Check the findings and calculations, what material the officer considered, and how the reasoning addresses your points. Under the CGST Act, a demand cannot be confirmed on grounds outside those stated in the notice or for an amount greater than the notice specified. If you believe the order departs from those limits, preserve the documents and obtain advice promptly.
Record the date the order was communicated. That date matters when assessing an appeal deadline. The order’s electronic summary, where applicable, is not a replacement for reading the complete order and its reasoning.
Appealing a GST demand order
For a first appeal under section 107 of the CGST Act, the ordinary filing period is three months from communication of the decision or order. The Appellate Authority may allow a further month if satisfied that sufficient cause prevented filing within the ordinary period. Calculate from the actual communication date, not merely the date printed on the order, and seek qualified help quickly if the deadline is close.
Section 107 also sets payment conditions, including requirements concerning admitted amounts and disputed tax. An appeal does not automatically mean recovery is stayed: check the current statutory requirements and your figures before filing. The CBIC appeal rules identify FORM GST APL-01 for an appeal. See the CBIC-hosted CGST Act text and CBIC-hosted CGST Rules. Because an official Act text may not reflect every subsequent amendment, verify the current law and applicable notifications for your case.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the section and tax period matter
Demand procedures and deadlines can depend on the provision cited and the tax period involved. Check the exact section printed on the document and verify which version of the law applies; do not assume sections 73 and 74 govern every current notice. The available official material does not establish the current commencement, scope, or interaction of section 74A with sections 73 and 74, so confirm those points against current legislation and notifications for the relevant period.
CBIC Circular 238/32/2024-GST discusses a section 128A waiver process for specified legacy section 73 cases. It is limited to the statutory conditions described there and should not be treated as a general waiver for all GST demands. Read the CBIC circular alongside the current law to determine whether it applies.
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