As per notification number 49/2019-Central Tax, dated 9 October 2019, every authorised officer should first communicate the details of any tax, interest and penalty ascertained to the assessee. Form GST DRC-01A is utilised for this. In this article, we will briefly discuss the essence of Form GST DRC-01A.
Note: On 15 October 2020, the CBIC via Notification number 79/2020 – Central Tax notified that furnishing information in Form GST DRC – 01A is made discretionary to the authorised officer.
As per the notification mentioned above (49/2019-Central Tax), if any taxpayer has to pay tax, interest and penalty under sub-section (1) of section 73 or 74 of the CGST Act then, the authorised officer should first communicate the details of the tax, interest and penalty ascertained by him/her in Part A of Form GST DRC-01A to the taxpayer. This works as an intimation. If the taxpayer fails to deposit the ascertained liability within the prescribed date, the authorised officer can issue a show-cause notice.
When a taxpayer receives an intimation in Part A of Form GST DRC-01A, he/she can use the Part B of Form GST DRC-01A to respond. Through Part B, the taxpayer can communicate the following to the authorised officer:
- Details of part-payment of the ascertained tax liability.
- Rejection of the ascertained tax liability (with submissions supporting the rejection).
- The intimation in Part A of GST DRC-01A will explicitly mention the date by which the submissions against the ascertainment have to be filed.
- Section 73 of the CGST act deals with the tax not paid or short paid or erroneously refunded, or the input tax credit wrongly availed or utilised for any reason other than that of fraud or wilful-misstatement.
- Section 74 of the CGST act deals with the tax not paid or short paid or erroneously refunded, or the input tax credit wrongly availed or utilised to deceive or suppress facts to evade tax.