Intimation in DRC 01A

[Krishna Murthy]

Can the Assessing Officer, issue an Intimation u/s 73(5) or 74(5) without opening the proceedings or without any proceedings pending before him?

There exists a difference between turnovers reported in GSTR-1 and GSTR-3B due to reporting of earlier period invoices in GSTR-1. However, GSTR-3B all the taxes have been paid.

Is issuance of Intimation in DRC 01A and subsequently SCN in DRC-01 without opening the proceedings a valid one?

AI Summary

Intimation under Section 73/74: issuing DRC-01A must follow recorded reasons and offer taxpayer reply before adjudication.
The department may issue Form DRC 01A based on available records to notify a taxpayer of discrepancies and to elicit a response; DRC 01A serves as an opportunity to explain differences between GSTR 1 and GSTR 3B. However, authorities and commentators stress that officers should examine returns cumulatively rather than isolate single months, record reasons for conclusions, and follow statutory scrutiny or audit mechanisms and the requirement to form reasons to believe before invoking enhanced provisions.