How to Reply to DRC-01A

How to Reply to DRC-01A Notice in GST – Format, Court Cases (2025)- Simplified

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If you’ve received a DRC-01A notice under GST, don’t panic. It’s not a penalty, but a chance to explain discrepancies before the GST officer raises an official demand. Responding timely and correctly can save you from penalties, interest, and future litigation and how to reply to DRC-01A.

How to Reply to DRC-01A – Step-by-Step

  1. Login to www.gst.gov.in
  2. Go to: Services > User Services > View Additional Notices & Orders
  3. Click on your DRC-01A Reference Number
  4. Download the notice and read carefully
  5. Click on ‘Reply’ → Submit Form DRC-01A Part B
  6. Write your reply clearly, attach documents
  7. If you accept the error, you can pay via DRC-03 and submit the ARN.

Sample Format for Reply to DRC-01A

To
Excise & Taxation Officer

Excise & Taxation Department,

Ward-04, Gurugram (West)

Subject: Reply to DRC-01A Intimation– Alleged Ineligible ITC on Invoices from Supplier with Cancelled GSTIN

Ref: Intimation No. [ZD060525005344H] dated [06/05/2025] under Section 74 of the CGST Act, 2017

Respected Sir,

With reference to the above-mentioned Show Cause Notice issued in Form DRC-01, it is alleged that we have availed excess Input tax credit in GSTR 3B in respect of GSTR-2A.

As per Our Comparison table GSTR 3B vs 2A are as follows:

 IGSTCGSTSGST
ITC Claimed in GSTR3B874802,189,3162,189,316
ITC auto Drafted in GSTR2A874802,186,9032,186,903
Mismatch   

For more reference, we have attached auto=populated 8A. (Annexure1).

 (ii) Inadmissible Input Tax Credit (ITC) on the basis of invoices issued by M/s TRISTAR METAL STAMPING INDUSTRIES, GSTIN: [06AASFT6089L1ZD] and M/s S.K. TECHNOMECH, GSTIN:[ 06AUOES7055H1Z3], whose registration has been cancelled retrospectively’

In this regard, we respectfully submit the following:

1. Factual Position

  • The ITC in question pertains to tax invoices issued during a period when the supplier’s GST registration status was active and verifiable on the GST portal.
  • The goods/services were actually received and utilized in the course or furtherance of our business.

2. Legal Submissions

We have duly complied with all conditions prescribed under Section 16(2) of the CGST Act, 2017, particularly:

  • Possession of a valid tax invoice;
  • Possession of E-Way bill;
  • Payment of tax to the supplier; and
  • Filing of return under Section 39.

Denial of ITC solely on account of retrospective cancellation of the supplier’s registration is not tenable in law, as clarified in several judicial precedents:

Relevant Case Laws:

  • Gargo Traders v. Joint Commissioner, Commercial Taxes (Calcutta High Court, 2023)
    Held that ITC cannot be denied merely because of retrospective cancellation of the supplier’s GST registration, when the recipient has complied with all statutory conditions.

3. Attachments

In support of our submissions, the following documents are enclosed:

  1. Copies of relevant tax invoices issued by the supplier.
  2. Proof of payment through banking channels (NEFT/RTGS).
  3. Goods Receipt Notes / Delivery Challans.
  4. GST registration status screenshot (during the relevant period).

4. Prayer

In view of the facts, legal position, and judicial precedents cited above, it is respectfully prayed that the proceedings initiated under the said notice may be dropped and the matter be treated as satisfactorily explained.

Thanking you,

Yours faithfully,
Sohan
Proprietor
[GSTIN]
[Place], [Date]
[Email ID / Contact No.]

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