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Demand and Recovery forms are forms which are related to demands and recovery proceedings. Few of DRC forms have already came in use like DRC – 03, DRC – 01 DRC – 01A etc. Although most of the forms have not come in use till date, they will be implemented in near future.
GST law authorizes the proper officer to determine and demand the following amounts:
1. Tax not paid (Sec. 73 & Sec.74)
2. Tax Short paid (Sec. 73 & Sec.74)
3. Tax erroneously refunded (Sec. 73 & Sec.74)
4. Input Tax Credit Wrongly Availed (Sec. 73 & Sec.74)
5. Input Tax Credit Wrongly Utilized (Sec. 73 & Sec.74)
6. Tax Collected but not paid (Sec. 76)
7. Tax Collected under Wrong head (Sec.77)
DRC 02 – “Summary of Statement”. After issuing the SCN as per Section 73(1) or Section 74(1) if the proper officer wants to issue details of tax unpaid or short paid for the same ground but for any other period, then he can issue a statement abiding section 73(3) or Section 74(3) of the Act. Alike DRC 01, new form of DRC 02 was also brought into effect from 1st April, 2019 as notified through Notification No. 16/2019 – Central Tax, dated 29th March, 2019.