CGST Rule 142: Notice and Order for Demand under the Act

Provisions under Rule 142 of CGST Rules, 2017 relating to “Notice and Order for Demand of Amounts Payable under the Act”:

CGST Rule 142: Notice and Order for Demand of Amounts Payable under the Act (Chapter XVIII: DEMANDS AND RECOVERY) [*1&5]

(1) The proper officer shall serve, along with the (a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC 01, (b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC 02, specifying therein the details of the amount payable.

(1A) The proper officer may [*7(a)], before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, communicate [*7(b)] the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC 01A. [*6(a)]

(2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act, whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A) [*6(b)], he shall inform the proper officer of such payment in FORM GST DRC-03 and an acknowledgement, in FORM GST DRC-04 shall be made available to the person through the common portal electronically [*10(a)]

(2A) Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC 01A, and thereafter the proper officer may issue an intimation in Part-C of FORM GST DRC-01A, accepting the payment or the submissions or both, as the case may be, made by the said person [*10(b)].  [*6(a)]

(2B) Where an amount of tax, interest, penalty or any other amount payable by a person under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, has been paid by the said person through an intimation in FORM GST DRC-03 under sub-rule (2), instead of crediting the said amount in the electronic liability register in FORM GST PMT-01 against the debit entry created for the said demand, the said person may file an application in FORM GST DRC-03A electronically on the common portal, and the amount so paid and intimated through FORM GST DRC-03 shall be credited in Electronic Liability Register in FORM GST PMT-01 against the debit entry created for the said demand, as if the said payment was made towards the said demand on the date of such intimation made through FORM GST DRC-03: [*10(c)]

Provided that where an order in FORM GST DRC-05 has been issued in terms of sub-rule (3) concluding the proceedings, in respect of the payment of an amount in FORM GST DRC-03, an application in FORM GST DRC-03A cannot be filed by the said person in respect of the said payment.

(3) Where the person chargeable with tax makes payment of tax and interest under subsection (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the service of a notice under sub-rule (1), or where the person concerned makes payment of the amount referred to in sub-section (1) of section 129 within seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3) [*8(a)], he shall intimate the proper officer of such payment in FORM GST DRC 03 and the proper officer shall issue an intimation [*9] in FORM GST DRC 05 concluding the proceedings in respect of the said notice.

(4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 or the reply to any notice issued under any section whose summary has been uploaded electronically in FORM GST DRC 01 under sub-rule (1) shall be furnished in FORM GST DRC 06.

(5) A summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC 07, specifying therein the amount of tax, interest and penalty, as the case may be, payable by the person concerned [*8(b)].

(6) The order referred to in sub-rule (5) shall be treated as the notice for recovery.

(7) Where a rectification of the order has been passed in accordance with the provisions of section 161 or where an order uploaded on the system has been withdrawn, a summary of the rectification order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST DRC 08.

Notes (History of Amendments in Bare Text):

1. CGST Rule 142 introduced vide Notification 15/2017, effective 01/07/2017.

2. In sub-rule (5), the text “or section 129 or section 130” inserted after the text “of section 76” from 19/06/2018 vide Notification 28/2018. [*5]

3. In sub-rule (5), the text “or section 125” inserted after the text “of section 76” from 10/09/2018 vide Notification 48/2018. [*5]

4. In sub-rule (5), the text “or sub-section (12) of section 75” inserted after the text “section 74” from 31/12/2018 vide Notification 74/2018. [*5]

5. Rule 142 substituted from 01/04/2019 vide Notification 16/2019. Please refer Notification 15/2017 for text thereof before substitution, except sub-rule (5) which was amended subsequently, as under:

“(5) A summary of the order issued under sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (12) of section 75 [*4] or sub-section (3) of section 76 or section 125 [*3] or section 129 or section 130 [*2] shall be uploaded electronically in FORM GST DRC 07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax.”

6. Amendments from 09/10/2019 vide Notification 49/2019:

(a) Sub-rule (1A) & (2A) inserted.

(b) in sub-rule (2), the text “, whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A),” inserted after the text “in accordance with the provisions of the Act”.

7. Amendments in sub-rule (1A) from 15/10/2020 vide Notification 79/2020:

(a) the text “proper officer shall” substituted with the text “proper officer may”.

(b) the text “shall communicate” substituted with the text “communicate”.

8. Amendments from 01/01/2022 vide Notification 40/2021:

(a) in sub-rule (3), the text “fourteen days of detention or seizure of the goods and conveyance” substituted with the text “seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3)”.

(b) in sub-rule (5), the text “tax, interest and penalty payable by the person chargeable with tax” substituted with the text “tax, interest and penalty, as the case may be, payable by the person concerned”.

9. In sub-rule (3), the text “proper officer shall issue an order” substituted with the text “proper officer shall issue an intimation” from 26/10/2023 vide Notification 53/2023.

10. Amendments from 10/07/2024 vide Notification 12/2024:

(a) in sub-rule (2), the text “he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04” substituted with the text “he shall inform the proper officer of such payment in FORM GST DRC-03 and an acknowledgement, in FORM GST DRC-04 shall be made available to the person through the common portal electronically”.

(b) in sub-rule (2A), the text “, and thereafter the proper officer may issue an intimation in Part-C of FORM GST DRC-01A, accepting the payment or the submissions or both, as the case may be, made by the said person” inserted after the text “FORM GST DRC-01A”.

(c) sub-rule (2B) inserted.