Demand & Show Cause Notice (SCN) Handling is the full-spectrum legal and factual defence of a registered taxpayer during GST demand adjudication under Sections 73, 74, and 75 of the CGST Act, 2017 read with Rule 142 of the CGST Rules. It is the stage at which the department moves beyond scrutiny and audit and formally proposes recovery of tax, interest, and penalty — through a pre-SCN intimation in Form DRC-01A, a formal show cause notice in Form DRC-01, a reply in Form DRC-06, personal hearing, and ultimately a demand order in Form DRC-07. What is decided here decisively shapes the outcome — any issue lost at this stage can only be recovered through a costly, time-bound appeal with pre-deposit under Section 107.
SCNs issued under Section 73 deal with tax not paid, short-paid, or ITC wrongly availed where there is no element of fraud, wilful misstatement, or suppression of facts — with lower penalty exposure and a three-year limitation. SCNs under Section 74 invoke allegations of fraud or suppression, extending the limitation to five years and pushing penalty exposure up to 100% of tax. There are also specialised notices under Section 76 (tax collected but not paid), Section 122 (penalty), Section 129 (detention of goods and conveyances), Section 130 (confiscation), and Rule 86B / 88C / 88D (mismatch-driven intimations). Each of these has its own procedural rhythm, limitation clock, and defence template — and mixing them up is one of the fastest ways to lose a case.
We offer end-to-end Demand & SCN Handling Services — from technical analysis of every notice received, strategic decision on DRC-01A settlement vs full contest, drafting of DRC-06 replies with reconciliations and case law, representation at personal hearings, adjudication defence under Sections 73 / 74 / 75, review of DRC-07 orders, evaluation of appeal viability, and seamless filing of Section 107 first appeal — so that every SCN is either closed favourably at adjudication stage, settled commercially on your terms, or carried forward with a clean, appeal-ready record.
Demand for tax, interest, and penalty where no fraud, wilful misstatement, or suppression is alleged.
Demand where fraud, suppression, or wilful misstatement is alleged, attracting higher penalty.
Demand of tax collected from customers but not deposited with the Government — special provisions apply.
Separate penalty SCN under Section 122 for offences like wrong invoicing, fake ITC, or non-registration.
Notice arising from detention of goods / vehicle in transit for alleged EWB / document violations.
System-generated intimations on GSTR-1 vs 3B liability and GSTR-2B vs 3B ITC mismatches.
Rule 142(1A) intimation of tax ascertained as payable, with DRC-03 payment window.
Formal SCN under Section 73 / 74 / 76 proposing demand of tax, interest, and penalty.
Statement of further tax demand during pendency of the same SCN for subsequent periods.
Form used to make voluntary payments of tax, interest, or penalty during any stage of proceedings.
Conclusion order where matter is closed after payment — the "no further action" outcome at SCN stage.
Taxpayer's structured reply to DRC-01 with facts, law, reconciliation, and documentary evidence.
Final adjudication order confirming or modifying demand — appealable under Section 107.
Order of rectification of mistake apparent on record or revision of an earlier DRC-07 order.
Full technical and legal analysis of every notice received, mapping issues, law, facts, and settlement options.
Structured drafting of DRC-06 with case law, reconciliations, and full evidence bundle.
Driving closure via DRC-05 / favourable DRC-07 or seamless first appeal with pre-deposit protection.
Detailed decoding of every SCN — sections invoked, issues raised, period, quantum, and deadlines.
Accept, contest, or partial settlement strategy on pre-SCN intimations under Rule 142(1A).
Structured reply drafting with legal submissions, case-law support, and documentary evidence.
Pushing back against Section 74 invocation where fraud / suppression facts are not adequately made out.
Urgent representation in detention / confiscation cases arising from e-way bill and movement issues.
Oral arguments, supplementary submissions, and adjournment / consolidation requests as required.
Clause-by-clause review of final orders to identify errors, gaps, and appealable grounds.
Filing Form APL-01 with 10% pre-deposit, grounds of appeal, and representation before the Appellate Authority.
Demand of ITC allegedly claimed in excess of GSTR-2B and Rule 88D intimations.
Serious Section 74 allegations of availing ITC on fake or non-existent vendor invoices.
Proposed reversal of ITC claimed on motor vehicles, CSR, food, or construction services.
Demand of RCM on GTA, legal, import of services, director services, or unregistered supplies.
Higher GST rate demanded based on different HSN / SAC classification proposed by the officer.
Allegation that zero-rated benefits / LUT refunds were wrongly claimed — demand of IGST plus interest.
Separate SCN for interest on delayed tax payment, wrongful ITC utilisation, or late 3B filings.
Section 129 detention notices for movement without valid EWB, wrong vehicle, or mismatched documents.
Full decoding of SCN — sections, issues, quantum, limitation, and deadlines.
Issue-wise strategy — defend, concede, partly settle — with quantified risk.
Drafting DRC-06 reply with law, facts, reconciliations, and supporting documents.
Personal hearings, oral submissions, and supplementary written arguments.
Review of DRC-07 and seamless transition to first appeal under Section 107 if needed.
Partner with our specialists for end-to-end Demand & SCN Handling — DRC-01A strategy, DRC-06 drafting, personal hearings, DRC-07 review, and Section 107 appeal — all under one roof.
Talk to an Expert