Rule 142 of CGST Rules 2017: Notice and Order for Demand under the Act

Provisions under Rule 142 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Notice and Order for Demand of Amounts Payable under the Act”, are as under:

CGST Rule 142: Notice and Order for Demand of Amounts Payable under the Act (Chapter-XVIII: DEMANDS AND RECOVERY) [Note 2]

(1) The proper officer shall serve, along with the

(a) notice under sub-section (1) of section 73 or sub-section (1) of section 74 or sub-section (2) of section 76, 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.

(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, 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.

(3) Where the person chargeable with tax makes payment of tax and interest under sub-section (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), he shall intimate the proper officer of such payment in FORM GST DRC 03 and the proper officer shall issue an order 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 shall be in FORM GST DRC 06.

(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 or sub-section (3) of section 76 or section 125 or section 129 or section 130 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. [Note 1]

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

(7) Any rectification of the order, in accordance with the provisions of section 161, shall be made by the proper officer in FORM GST DRC 08.

CGST Rule 142: Notice and Order for Demand of Amounts Payable under the Act (Chapter-XVIII: DEMANDS AND RECOVERY) 

(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 shall proper officer may, 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, shall communicate communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC 01A. [Note 3, 5 & 6]

(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), 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. [Note 4]

(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. [Note 3]

(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 fourteen days of detention or seizure of the goods and conveyance 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), he shall intimate the proper officer of such payment in FORM GST DRC 03 and the proper officer shall issue an order in FORM GST DRC 05 concluding the proceedings in respect of the said notice. [Note 7]

(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 payable by the person chargeable with tax tax, interest and penalty, as the case may be, payable by the person concerned. [Note 8]

(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.

Amendments History:

1. In sub-rule (5), the text ‘or section 129 or section 130’, ‘or Section 125’ and ‘or sub-section (12) of section 75’ inserted vide Central Tax Notification 28/2018 dt. 19/06/2018, Central Tax Notification 48/2018 dt. 10/09/2018 and Central Tax Notification 74/2018 dt. 31/12/2018 respectively. These amendments were made before substitution of this Rule.

2. CGST Rule 142 substituted w.e.f. 01/04/2019 vide Central Tax Notification 16/2019 dt. 29/03/2019.

3. Sub-rules (1A) and (2A) inserted vide Central Tax Notification 49/2019 dt. 09/10/2019.

4. The text ‘whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A)’ inserted in sub-rule (2) after the text ‘in accordance with the provisions of the Act’ vide Central Tax Notification 49/2019 dt. 09/10/2019.

5. In sub-rule (1A), the text ‘proper officer shall’ substituted with the text ‘proper officer may’ vide Central Tax Notification 79/2020 dt. 15/10/2020.

6. In sub-rule (1A), the text ‘shall communicate’ substituted with the text ‘communicate’ vide Central Tax Notification 79/2020 dt. 15/10/2020.

7. 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)”, w.r.e.f. 01/04/2021, vide Central Tax Notification 40/2021 dt. 29/12/2021. Now the proceedings of Notice u/s 129(3) will stand concluded if the demanded amount is paid within 7 days, as against earlier prescribed period of 14 days, provided no final Order has been issued.

8. 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”, w.r.e.f. 01/04/2021, vide Central Tax Notification 40/2021 dt. 29/12/2021. The term “person chargeable to tax” has been substituted with the term “person concerned”. 

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.