From GST Notice to GSTAT Appeals : Complete Sequence of GST Forms, Orders and Appeals
Receiving a GST notice is only the beginning of a legal process. Depending on the nature of the discrepancy, the matter may be closed after a satisfactory reply, proceed to a show cause notice, result in an adjudication order, or travel further to the First Appellate Authority, GST Appellate Tribunal, High Court and Supreme Court.
However, taxpayers often become confused by expressions such as ASMT-10, DRC-01, DRC-07, OIO, OIA, APL-01 and APL-05.
The first point to understand is that every document has a different purpose. For example, DRC-01 is not necessarily the complete show cause notice, and DRC-07 is not the complete adjudication order. Similarly, an Order-in-Original and an Order-in-Appeal are legal orders, while DRC-07 and APL-04 are electronic summaries of those orders.
This article explains the normal sequence from the beginning of a GST dispute until its final appellate stage.
Stage 1: How GST proceedings may begin
A GST dispute does not always begin directly with a show cause notice. It may originate from scrutiny of returns, departmental audit, special audit, investigation, inspection, search, summons proceedings, intelligence inputs or information obtained from another taxpayer.
The route followed depends on how the alleged discrepancy was detected.
Route 1: Scrutiny of GST returns
FORM GST ASMT-10: Notice for discrepancy in returns
Under Section 61 of the CGST Act, the proper officer may scrutinise the returns and related particulars filed by a registered person.
Where a discrepancy is noticed, the officer may issue FORM GST ASMT-10.
Common discrepancies include:
• Difference between GSTR-1 and GSTR-3B
• Difference between GSTR-2B and input tax credit claimed
• Difference between e-way bills and turnover reported
• Non-payment of reverse charge liability
• Excess input tax credit
• Short payment of output tax
• Mismatch with income-tax, customs or other departmental data
ASMT-10 is a scrutiny notice. It is not, by itself, a final demand order.
FORM GST ASMT-11: Reply to scrutiny notice
The taxpayer may accept the discrepancy and make the required payment or submit an explanation in FORM GST ASMT-11.
The reply should ordinarily be supported by reconciliations, invoices, returns, books of account, payment proofs and legal submissions.
FORM GST ASMT-12: Acceptance of explanation
Where the officer finds the taxpayer’s explanation satisfactory, the discrepancy is closed through FORM GST ASMT-12.
The sequence ends at this stage:
ASMT-10 → ASMT-11 → ASMT-12
However, if the explanation is not accepted or the taxpayer does not respond, the department may initiate audit, investigation or demand proceedings under the applicable provisions of the GST law.
Route 2: Departmental audit
FORM GST ADT-01: Notice for departmental audit
Where the department decides to conduct an audit under Section 65, the registered person is informed through FORM GST ADT-01.
The taxpayer may be required to produce:
• Books of account
• Tax invoices
• Input tax credit records
• Trial balance and ledgers
• GST reconciliations
• E-way bill and e-invoice data
• Agreements and supporting documents
FORM GST ADT-02: Communication of audit findings
After completion of the audit, the findings are communicated in FORM GST ADT-02.
If the taxpayer accepts the findings, the amount may be paid through FORM GST DRC-03.
If the findings are disputed or the payment is not made, the department must ordinarily proceed through proper demand and adjudication proceedings. Audit findings by themselves are not a substitute for a legally valid show cause notice and adjudication order.
The normal audit route is:
ADT-01 → Audit proceedings → ADT-02 → Payment or show cause notice
Route 3: Investigation, summons, inspection or search
A proceeding may also begin through:
• Summons under Section 70
• Inspection or search under Section 67
• Information obtained from suppliers or customers
• Investigation by the Directorate General of GST Intelligence
• Data analytics or intelligence reports
• Statements recorded from third parties
There is no single compulsory form covering every investigation proceeding. After completing the inquiry, the officer may communicate the proposed liability or directly issue a show cause notice in accordance with law.
Stage 2: Pre-show cause notice communication
FORM GST DRC-01A: Intimation before the show cause notice
Before issuing a show cause notice, the proper officer may communicate the tax, interest and penalty ascertained by the department in Part A of FORM GST DRC-01A.
The use of DRC-01A is presently discretionary because Rule 142 uses the expression “may”.
A taxpayer receiving DRC-01A may:
• Accept the proposed liability and make payment
• Make a partial payment
• Dispute the proposed liability
• Submit reconciliations, documents and legal arguments
The taxpayer may make submissions in Part B of DRC-01A. The officer may thereafter communicate acceptance of the payment or submissions in Part C.
DRC-01A is a pre-notice opportunity. It is not the formal show cause notice.
Stage 3: Voluntary payment before the show cause notice
FORM GST DRC-03: Intimation of voluntary payment
A taxpayer may make payment of tax, interest, penalty or any other amount through FORM GST DRC-03.
The payment may be made:
• On the taxpayer’s own ascertainment
• In response to DRC-01A
• During audit or investigation
• After receipt of a show cause notice
• Against an existing demand, subject to the applicable procedure
Before making payment, the taxpayer should clearly identify the relevant tax period, section, cause of payment and whether the payment is being made voluntarily, under protest or in acceptance of liability.
FORM GST DRC-04: Acknowledgement of payment
Where payment is made before service of the show cause notice in accordance with Rule 142, an acknowledgement is made available in FORM GST DRC-04.
FORM GST DRC-03A: Adjustment of payment against an existing demand
Where payment has already been made through DRC-03 but was not correctly adjusted against a demand appearing in the electronic liability register, the taxpayer may use FORM GST DRC-03A, subject to the prescribed conditions.
DRC-03A does not represent a fresh payment. It facilitates the adjustment of an earlier DRC-03 payment against the relevant demand.
Stage 4: Formal show cause notice
Show Cause Notice and FORM GST DRC-01
If the matter is not resolved, the proper officer may issue a formal show cause notice.
For tax periods up to Financial Year 2023-24, demand proceedings are generally governed by:
• Section 73 for cases not involving fraud, wilful misstatement or suppression of facts to evade tax
• Section 74 for cases involving fraud, wilful misstatement or suppression of facts to evade tax
For Financial Year 2024-25 onwards, Section 74A provides a common framework for determining tax not paid, short paid, erroneously refunded or input tax credit wrongly availed or utilised. The penalty consequences continue to depend on whether fraud, wilful misstatement or suppression to evade tax is alleged and established.
The department serves the detailed show cause notice along with an electronic summary in FORM GST DRC-01.
The correct understanding is:
Detailed SCN = Main legal notice
DRC-01 = Electronic summary of the SCN
Therefore, the taxpayer must study the complete show cause notice, annexures, relied-upon documents and DRC-01. A reply limited only to the figures appearing in DRC-01 may not adequately address the allegations in the main notice.
FORM GST DRC-02: Summary of statement for another period
Where a show cause notice has already been issued and the same grounds apply to another tax period, the officer may issue a statement for the additional period. A summary of such statement is furnished in FORM GST DRC-02.
Stage 5: Reply to the show cause notice
FORM GST DRC-06: Reply to the show cause notice
The taxpayer submits the reply to the show cause notice through FORM GST DRC-06.
A proper reply should generally contain:
• Preliminary legal objections
• Brief facts and business background
• Issue-wise response to every allegation
• Reconciliation of figures
• Supporting documentary evidence
• Relevant statutory provisions
• Applicable circulars and notifications
• Judicial precedents
• Request for relied-upon documents
• Request for cross-examination, where necessary
• Request for personal hearing
• Clear prayer for dropping the proposed demand
Uploading only a brief portal reply without a detailed annexure can weaken the taxpayer’s case. The reply should respond to the exact allegation and not merely provide a general explanation.
Stage 6: Personal hearing and adjudication
After considering the reply, the adjudicating authority should provide an opportunity of personal hearing wherever an adverse decision is contemplated or where such hearing is requested.
The taxpayer may submit additional documents and written submissions during or after the hearing, subject to the permission of the authority.
The authority must consider the reply, evidence and legal arguments before passing a reasoned order.
Stage 7: Order-in-Original and DRC-07
Order-in-Original
The detailed order passed by the original adjudicating authority is commonly called the Order-in-Original or OIO.
The OIO should contain:
• Background of the proceedings
• Allegations in the show cause notice
• Taxpayer’s submissions
• Issues requiring determination
• Discussion of evidence
• Findings of the authority
• Tax, interest and penalty determined
• Reasons supporting the decision
FORM GST DRC-07: Summary of the order
Along with the adjudication order, the department uploads a summary of the demand in FORM GST DRC-07.
DRC-07 specifies the amount of tax, interest and penalty payable. It is also treated as a notice for recovery.
The distinction is important:
OIO = Complete reasoned adjudication order
DRC-07 = Electronic summary of demand arising from the order
A taxpayer should not prepare an appeal only from DRC-07. The complete OIO, show cause notice, reply, hearing submissions and supporting evidence must be examined together.
The standard adjudication sequence is:
DRC-01A, where issued → SCN with DRC-01 → Reply in DRC-06 → Personal hearing → OIO with DRC-07
Stage 8: Closure after payment
FORM GST DRC-05: Conclusion of proceedings
Where the taxpayer makes the prescribed payment within the statutory period after issuance of the show cause notice, the proper officer may conclude the proceedings through FORM GST DRC-05.
The applicable payment amount and penalty depend on:
• The relevant financial year
• Whether Section 73, Section 74 or Section 74A applies
• Whether fraud or suppression is alleged
• The stage at which payment is made
• The statutory time limit within which payment is made
Taxpayers should not assume that every DRC-03 payment automatically closes the proceeding. A formal conclusion in DRC-05 or an appropriate adjudication order should be verified.
Stage 9: Rectification of the order
Application for rectification under Section 161
An error apparent on the face of the record may be rectified under Section 161, subject to the statutory conditions and limitation period.
Rectification is generally intended for obvious mistakes, such as:
• Arithmetical errors
• Clerical mistakes
• Incorrect duplication of demand
• Failure to give credit for payment already made
• Apparent mismatch between the order and demand summary
Rectification cannot normally be used as a substitute for an appeal involving detailed interpretation, disputed facts or reappreciation of evidence.
FORM GST DRC-08: Summary of rectification or withdrawal
Where the adjudication order is rectified or withdrawn, the corresponding summary is uploaded in FORM GST DRC-08.
Stage 10: First appeal before the Appellate Authority
Where the taxpayer is aggrieved by the OIO, an appeal may be filed under Section 107.
FORM GST APL-01: Appeal by the taxpayer
The taxpayer files the first appeal in FORM GST APL-01.
The appeal must generally be filed within three months from the date on which the order is communicated. The Appellate Authority may condone a delay of only one additional month where sufficient cause is established.
The appeal should contain:
• Statement of facts
• Grounds of appeal
• Disputed demand details
• Relief requested
• Copy of the impugned order
• Show cause notice
• Reply and supporting documents
• Personal hearing submissions
• Relevant judicial precedents
• Proof of pre-deposit
The appellant must pay:
• The entire amount admitted as payable; and
• Ten per cent of the remaining disputed tax, subject to the statutory ceiling
On payment of the prescribed amount, recovery of the balance disputed amount is deemed to be stayed during the first appeal.
FORM GST APL-02: Final acknowledgement
After filing APL-01 and satisfying the applicable requirements, the Appellate Authority issues the final acknowledgement in FORM GST APL-02.
Where the order being appealed against is not available on the portal, the taxpayer may be required to submit a self-certified copy within the prescribed time. Delay in submitting the copy may affect the recognised date of filing.
FORM GST APL-03: Departmental application
Where the Commissioner directs an authorised officer to challenge an adjudication order, the departmental application before the First Appellate Authority is filed in FORM GST APL-03.
APL-03 is therefore primarily a departmental form and not the normal form used by a taxpayer for filing the first appeal.
FORM GST APL-01/03W: Withdrawal of appeal
An appeal or departmental application filed in APL-01 or APL-03 may be withdrawn through FORM GST APL-01/03W, subject to the prescribed conditions and approval requirements.
Stage 11: Order-in-Appeal and APL-04
After hearing the appeal, the First Appellate Authority may:
• Confirm the original order
• Modify the original order
• Annul or set aside the original order
• Grant complete or partial relief
The detailed decision is commonly called the Order-in-Appeal or OIA.
FORM GST APL-04: Summary of the appellate order
Along with the OIA, a summary indicating the final demand is issued in FORM GST APL-04.
The distinction is:
OIA = Detailed reasoned order of the First Appellate Authority
APL-04 = Electronic summary of the result and final demand
The first appeal sequence is:
OIO with DRC-07 → APL-01 → APL-02 → Appellate hearing → OIA with APL-04
Stage 12: Appeal before the GST Appellate Tribunal
A taxpayer aggrieved by an order passed by the First Appellate Authority or Revisional Authority may approach the GST Appellate Tribunal under Section 112.
FORM GST APL-05: Appeal by the taxpayer before GSTAT
The taxpayer’s appeal before GSTAT is filed in FORM GST APL-05 through the GSTAT e-filing portal.
The statutory period is generally three months from communication of the order or such later notified date as may apply. Special filing schedules may apply to older orders because GSTAT became operational after a significant delay.
Before filing, the taxpayer must ordinarily pay:
• The entire admitted amount
• The pre-deposit made at the first appellate stage
• An additional ten per cent of the remaining disputed tax, subject to the statutory ceiling
Thus, in a normal tax-demand appeal, the cumulative pre-deposit may ordinarily become twenty per cent of the disputed tax: ten per cent at the first appeal stage and an additional ten per cent at the Tribunal stage.
Payment of the prescribed Tribunal pre-deposit results in a deemed stay of recovery of the remaining disputed amount during the appeal.
FORM GST APL-02A: GSTAT acknowledgement
Upon filing the Tribunal appeal:
• Part A of FORM GST APL-02A operates as the provisional acknowledgement
• Part B operates as the final acknowledgement after removal of defects and registration of the appeal
An appeal should not be treated as fully registered merely because it has been uploaded. The appellant must monitor defect communications and ensure that the final appeal number is generated.
FORM GST APL-06: Cross-objections
Where one party files an appeal before GSTAT, the opposite party may file a memorandum of cross-objections in FORM GST APL-06.
Cross-objections are generally required to be filed within 45 days from receipt of notice of the appeal, subject to the Tribunal’s power to condone delay within the permitted period.
FORM GST APL-07: Departmental appeal before GSTAT
Where the Commissioner directs an authorised officer to challenge the order of the First Appellate Authority or Revisional Authority, the departmental application before GSTAT is filed in FORM GST APL-07.
FORM GST APL-04A: Summary of GSTAT’s final order
The Tribunal passes its detailed judicial order after hearing the parties. The summary of the Tribunal’s order, including the final amount of demand confirmed, is issued in FORM GST APL-04A.
The Tribunal sequence is:
OIA with APL-04 → APL-05 → APL-02A Part A → Defect removal → APL-02A Part B → GSTAT hearing → GSTAT order with APL-04A
Stage 13: Appeal to the High Court
An appeal may be filed before the jurisdictional High Court under Section 117 where the case involves a substantial question of law.
FORM GST APL-08: Appeal to the High Court
The prescribed GST form for an appeal to the High Court is FORM GST APL-08.
The High Court is not ordinarily a second forum for complete reconsideration of every factual dispute. The appeal must involve a substantial question of law arising from the Tribunal’s order.
In appropriate cases, a taxpayer may also invoke the writ jurisdiction of the High Court under Article 226 of the Constitution, particularly where there is:
• Violation of natural justice
• Lack of jurisdiction
• Failure to provide relied-upon documents
• Denial of personal hearing
• Order passed without considering the reply
• Portal-related denial of statutory remedy
• Patent illegality
However, writ jurisdiction is discretionary and is not normally a substitute for an effective statutory appeal.
Stage 14: Supreme Court
A party aggrieved by an eligible order of the High Court or, in specified matters, the Tribunal may approach the Supreme Court in accordance with the CGST Act and the applicable constitutional and procedural provisions.
The Supreme Court represents the final judicial stage of the GST dispute.
Complete GST litigation sequence at a glance
A standard scrutiny-based matter may follow this sequence:
ASMT-10 → ASMT-11 → ASMT-12 if accepted
Where the discrepancy is not closed:
ASMT-10 → ASMT-11 → DRC-01A, where issued → SCN with DRC-01 → DRC-06 reply → Personal hearing → OIO with DRC-07
The appellate sequence is:
OIO and DRC-07 → APL-01 → APL-02 → OIA and APL-04 → APL-05 → APL-02A → GSTAT order and APL-04A → High Court through APL-08 → Supreme Court
The payment and closure route may be:
DRC-01A or SCN → Payment through DRC-03 → DRC-04 or DRC-05, depending on the stage and statutory conditions
The rectification route may be:
OIO or demand order → Rectification application under Section 161 → Rectification order with DRC-08
Important distinctions every taxpayer should remember
DRC-01 is not the complete SCN
DRC-01 is the electronic summary. The allegations, evidence and legal basis must be examined from the detailed show cause notice and its annexures.
DRC-07 is not the complete OIO
DRC-07 records the demand electronically. The detailed findings and reasoning are contained in the Order-in-Original.
APL-04 is not the complete OIA
APL-04 is the summary of the appellate result. The detailed reasoning is contained in the Order-in-Appeal.
DRC-03 payment does not always close proceedings
The taxpayer should verify whether the payment has been accepted, correctly adjusted and followed by the appropriate closure communication.
Every GST proceeding does not begin with ASMT-10
A case may begin through audit, investigation, summons, inspection, registration proceedings, refund proceedings or enforcement action.
Limitation should be calculated from the correct communication date
The date printed on an order, the date of uploading on the portal and the date of actual communication may not always be the same. Limitation must be reviewed carefully and the appeal should be filed without delay.
Documents that should be preserved from the beginning
A taxpayer should maintain a complete litigation file containing:
• Notice and all annexures
• DRC-01A, DRC-01 and DRC-02
• Replies filed on the portal
• ARN and filing acknowledgements
• Supporting invoices and reconciliations
• Books of account and ledger extracts
• Payment challans and DRC-03
• Personal hearing notices
• Written submissions
• Order-in-Original and DRC-07
• Appeal papers and pre-deposit proof
• Order-in-Appeal and APL-04
• GSTAT filings and acknowledgements
Documents omitted at the adjudication stage may become difficult to introduce later because additional evidence at the appellate stage is subject to legal restrictions.
Final takeaway
GST litigation is not simply a sequence of portal forms. Each form represents a separate legal stage carrying its own limitation period, evidentiary requirement and financial consequence.
A timely and properly supported reply at the scrutiny or show cause notice stage can prevent an unnecessary demand. Where an adverse order is passed, the distinction between the full order and its portal summary becomes critical for preparing an effective appeal.
The most useful sequence to remember is:
Notice → Reply → Hearing → OIO → First Appeal → OIA → GSTAT → High Court → Supreme Court
Understanding this sequence enables taxpayers to protect their rights, maintain proper documentation and take the correct action before the available statutory remedy expires.
Disclaimer: This article provides a general overview of GST proceedings and should not be treated as legal advice for any particular matter. The applicable provision, form, limitation period and pre-deposit should be verified with reference to the relevant order, tax period and law in force.
