Proper adjudicating authority

[Sudhir Kumar]

Sir Please let me know that who is the proper adjudicating authority in case of DRC 01 to be issued only for interest? Whether the same monetary limit exist for adjudication of the Principal tax amount. Please clarify.

AI Summary

Clarification: GST interest is part of principal tax; same monetary limits apply for issuing DRC-01. A forum participant inquired about the proper adjudicating authority for issuing DRC-01 solely for interest under GST, questioning if the same monetary limit applies as for the principal tax amount. Kasturi Sethi clarified that interest is integral to the principal tax, thus the same monetary limit applies. Sudhir Kumar mentioned a case involving a principal amount of Rs 44 lacs and interest of Rs 7 lac, questioning the authority of the Superintendent CGST to issue a show cause notice. Kasturi Sethi explained that interest liability is automatic under the law, and the Superintendent's authority to issue DRC-01 cannot be challenged unless disputing the interest's calculation or liability.