FORM GST DRC-07 - Summary of a reasoned section 73 adjudication order
A notice has been adjudicated after reply and hearing and the order creates a quantified demand.
Responsible actor: The proper officer uploads the summary of the separately issued reasoned order. Provision: Sections 73(9),75(4),(6),(7),78; rules 142(5),(6).
Official source and completed example
Download official blank source extract PDF Download completed fictional sample PDF
The sample is a flowed model of the prescribed fields and selected paragraphs, not an official issued PDF. Names, references and facts are fictional. It contains no signature, stamp, DSC or simulated approval.
Current law checked 21 October 2026. Selected FY 2023–24 section 73 or explicitly identified earlier-law branch; all names/references are fictional and unsigned.
Worked facts and completed entries
Independent Branch C: CGST 9000 and SGST 9000 on a January 2024 staff-catering invoice were actually availed and fully utilised 20 February 2024. No outward-catering or statutory employer-obligation exception applies. No fraud, unpaid self-assessed output tax or collected tax is involved. No payment is made within thirty days after the 10 August 2026 section 73 notice. The taxpayer replies 10 September and is heard 25 September. The 5 October 2026 reasoned order disallows the actual 9000/head credit. It records why no exception applies. Interest through 5 October is 4252/head and penalty 10000/head; total 46504. This branch has no timely settlement/payment.
Reference and addressee
| Reference number | ILLUSTRATION-DRC07-C-2026-1005 |
|---|---|
| Date | 5 October 2026 |
| GSTIN | 29AABCA0000A1ZT |
| Name | Aster Learning Supplies Private Limited (fictional) |
| Address | 12 Learning Park, Bengaluru, Karnataka 560001 (fictional) |
1. Details of order
| Order number / date | ILLUSTRATION-ORDER-C-2026-1005 /5 October 2026 |
|---|---|
| Financial year | 2023–24 |
| Tax period from / to | 1 January 2024 /31 January 2024 |
2. Issues involved
Whether staff-catering input tax is blocked and whether an exception is proved; whether the credit was actually availed and utilised. The reasoned order considers the 10 September reply and 25 September hearing, rejects the claimed exception on the assumed employment/supply facts, and quantifies actual credit rather than invoice tax never taken.
3–4. Description and statutory demand
| Goods / service / HSN | Staff catering service; HSN not material to the selected credit issue |
|---|---|
| Sections creating demand | 73(9), read with 17(5)(b)(i) and 50(3), under CGST and Karnataka SGST |
| Detailed notice / hearing linkage | 10 August notice /10 September reply /25 September hearing; no enhancement beyond notice grounds or tax |
5. Demand in INR, interest through 5 October 2026
| Act | Tax | Interest | Penalty | Fee / other | Total |
|---|---|---|---|---|---|
| CGST | 9000 | 4252 | 10000 | 0 /0 | 23252 |
| SGST | 9000 | 4252 | 10000 | 0 /0 | 23252 |
| IGST / Cess | 0 | 0 | 0 | 0 /0 | 0 |
| Total | 18000 | 8504 | 20000 | 0 /0 | 46504 |
Prescribed optional rate / turnover / period / POS
| Tax rate / turnover | Not applicable to quantification of blocked ITC; the invoice is not treated as unreported outward turnover |
|---|---|
| Period from / to | 1 January to 31 January 2024 |
| POS | Not applicable: no IGST demand |
| HSN / goods / services where applicable | Staff catering service; HSN entry not necessary to identify this blocked-credit dispute |
Payment direction
The reasoned order is served 5 October 2026. Pay the ordered amount within three months of service, by 5 January 2027 on the assumed same-day service, unless a legally recorded shorter period applies. This example records no shorter period. Interest continues as applicable until actual payment;46504 is the order-date quantified amount. Any properly maintained statutory appeal/stay and credits must be reconciled before recovery. DRC-07 supplies the electronic recovery summary and is not a fresh second demand.
Officer and execution
| Name / designation | N. Prakash, Assistant Commissioner, Bengaluru (fictional; unsigned teaching role) |
|---|---|
| Jurisdiction / address | Bengaluru Central Tax / Illustration Office,12 Learning Park, Bengaluru560001 |
| Date / signature | 5 October 2026 / unsigned educational role, no official order or approval |
How this form moves the matter forward
- Identify the actual FY, statutory provision, full underlying instrument and exact service record.
- Reconcile each Act, period, tax, interest and penalty with the evidence and hearing record.
- Keep the electronic summary linked to the detailed notice/order; observe the separate reply, settlement, appeal and recovery rules.
Evidence supporting these entries
- Invoice and actual availment/utilisation ledger
- Detailed notice/statement, service record, reply and hearing evidence
- Independent day-count/interest and penalty working; original reasoned order where applicable
Additional primary authority: Official CGST Act as on 11 June 2026:sections 73/74A/75 PDF pages 67–72, section 78 PDF page 73, section 161 PDF page 120.
Additional primary authority: West Bengal GST Policy Planning Unit, GST Updates July 2022, PDF page 3:actual section 50(3) notified interest rate 18%; pages 8–9:utilisation basis.
Period and legal consequences
Section 78 ordinarily allows three months from service, rather than a universal thirty-day recovery period. Sections 75(6)/(7) require the factual/legal basis and prevent exceeding the notice amount/grounds. Section 73(9) penalty is 10000 per Act here because 10% of 9000 is only 900; the separate section 73(8) settlement window expired without payment.
Primary source and exact locator
Official notified form source: PDF pages 425-426; printed pages 419-420.
CGST Act and government-hosted Act and Rules compilation - Sections 73(9),75(4),(6),(7),78; rules 142(5),(6). Source and example revision: 21 October 2026.
Questions answered by this example
Who prepares or issues this form?
The proper officer uploads the summary of the separately issued reasoned order. A notice has been adjudicated after reply and hearing and the order creates a quantified demand.
Can this sample be filed or treated as an issued document?
No. It is a completed fictional teaching example. Use the notified form and the authenticated portal/proceeding record for an actual matter. The example contains no executed signature or official approval.
What must reconcile before the next step?
Invoice and actual availment/utilisation ledger; Detailed notice/statement, service record, reply and hearing evidence; Independent day-count/interest and penalty working; original reasoned order where applicable.