GST demand order in DRC-07: pay, appeal or rectify before recovery starts
A DRC-07 means the officer has confirmed tax, interest and penalty against you. You have three months to pay or to appeal, and the clock is already running. We read the order, check whether it is within time and correctly worked, and file the appeal or rectification that fits. The first read is free and the fee is quoted before we start.
Fixed quote after a free first read of the order
Ask an expert on WhatsApp, freeWhat a DRC-07 is
After a show cause notice under section 73, 74 or 74A, the officer passes an order and uploads its summary in FORM GST DRC-07. It confirms the tax, interest and penalty, and it is also the notice for recovery.
The amount must be paid within three months from the date of service of the order. The officer can require earlier payment in the interest of revenue, with reasons recorded in writing. If it is not paid, recovery proceedings begin.
If you did not reply to the show cause notice in DRC-01, the order was passed on the material available to the officer. That does not take away your right to appeal.
What we do with a demand order
Whether it was passed within the time the law allows, and whether the figures hold.
Grounds drafted, the pre-deposit worked out and the appeal filed within three months.
An application where the error is apparent on the face of the record.
Where paying early cuts the penalty, we tell you the date and the amount.
Bank attachment and recovery notices answered while the appeal is pending.
A fixed quote in writing after the free first read.
Documents required
Send us
- The order and its DRC-07 summary
- The show cause notice (DRC-01) and any reply you filed
- GSTR-1, GSTR-3B, GSTR-2B and GSTR-9 for the period
- Any payment already made through DRC-03
Not sure which package fits?
A specialist will map your situation to the right plan in one call.
From order to appeal
- Free first read
We note the date of the order, the section, the period and the amounts.
- Test the order
Time limits, the working, and whether you were heard.
- Choose the route
Pay with reduced penalty, rectify, appeal, or a combination.
- File in time
Appeal with the pre-deposit, or the rectification application, before the date.
- Follow through
Hearings before the Appellate Authority and any recovery action answered.
Transparent pricing
First read
Free
before you reply or pay anything
- What the notice is and which law it is under
- The real last date to respond
- What it will take to answer it
- A fixed quote in writing
- Drafting or filing
Reply
Fixed quote
by the notice, after we read it
- Order checked for time limits and working
- Rectification application under section 161
- Payment advice where early payment cuts the penalty
- Follow-up with the officer
- Appeal
Appeal
Fixed quote
where the matter goes further
- Grounds of appeal and statement of facts
- Pre-deposit computed
- Appeal filed in APL-01
- Hearings attended
There is no price list for notices, because no two are alike. The fee depends on the kind of notice, the number of years, the amount in dispute and how much reconciliation it needs. A simple reply to an income-tax intimation starts at ₹999 and a GST mismatch reply at ₹1,499; everything else is quoted in writing after the free first read, before any work starts. Professional fees exclude GST at 18%.
Your three options
| Option | When it fits | Time limit |
|---|---|---|
| Pay the demand | The order is correct | 3 months from service of the order; earlier payment can reduce the penalty |
| Rectification | An error apparent on the face of the record | Apply within 3 months of the order; no rectification after 6 months, except a clerical or arithmetical slip |
| Appeal | You dispute the demand | 3 months from the date the order is communicated; one more month can be allowed for sufficient cause |
To appeal you pay the admitted amount in full and 10% of the remaining tax in dispute, up to ₹20 crore. Once that is paid, recovery of the balance is deemed to be stayed. Where the order demands only a penalty, the pre-deposit is 10% of the penalty.
What happens if the order is ignored
Recovery
After the three months, the officer can recover the amount in several ways: by deducting it from money the department owes you, by requiring your bank or anyone who owes you money to pay it to the government instead, by detaining and selling your goods, or by sending a certificate to the Collector to recover it as an arrear of land revenue.
Interest
Interest on the tax is payable whether or not the order says so.
Was the order passed in time?
For periods up to FY 2023-24, an order under section 73 must be passed within three years, and under section 74 within five years, from the due date of the annual return for that year. For FY 2024-25 onwards, section 74A requires the order within twelve months of the notice, extendable by up to six months. If the order is not issued in time, the proceedings are deemed to be concluded.
Penalty that reduces if you pay early
In a fraud case under section 74, the penalty falls to 50% of the tax if tax, interest and that penalty are paid within 30 days of the order. Under section 74A the same applies within 60 days of the order.
Related
Frequently asked questions
What is DRC-07 in GST?
The summary of a demand order, uploaded on the portal after a show cause notice under section 73, 74 or 74A. It confirms tax, interest and penalty and serves as the notice for recovery.
Within how many days must a GST demand order be paid?
Within three months from the date of service of the order. The officer can require earlier payment in the interest of revenue, with reasons in writing.
What is the time limit to appeal against a GST demand order?
Three months from the date the order is communicated. The Appellate Authority can allow one more month if there was sufficient cause for the delay.
How much pre-deposit is needed for a GST appeal?
The admitted amount in full, plus 10% of the remaining tax in dispute, subject to a maximum of ₹20 crore. For an order demanding only a penalty, it is 10% of the penalty.
Does filing a GST appeal stop recovery?
Yes, for the balance. Once the pre-deposit is paid, recovery of the remaining amount is deemed to be stayed.
Can a GST demand order be rectified?
Yes, where there is an error apparent on the face of the record. You can point it out within three months of the order, and rectification is not done after six months unless it is a clerical or arithmetical slip.
What if I never replied to the show cause notice?
The order will have been passed on the material the officer had. You can still appeal within the time limit, or seek rectification where the error is apparent.
Official references
The statutory sources behind this page. We keep our guidance aligned to them: verify anything time-sensitive directly.
- GST PortalRegistration, returns and rate notifications
- CBICCirculars and notifications on indirect tax
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.