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A GST demand notice is generally a show-cause proposal, while a tax determination or assessment order records the proper officer’s decision. The notice asks why proposed tax, interest or penalty should not be recovered; the order states what liability, if any, has been determined and what action follows. The exact distinction depends on the statutory section printed on the document. Under the CGST framework, sections 73 and 74 deal with demand proceedings, while sections 62, 63 and 64 provide separate assessment routes.
The short answer: proposal versus decision
When a document cites section 73 or 74 and asks you to explain why an amount should not be paid, it is normally a show-cause or demand notice. It starts an adjudication process; it is not, by itself, final proof that the proposed liability is correct. You receive an opportunity to examine the allegations, reconcile the figures, submit a reply and request a hearing where appropriate.
An order is issued after the applicable process. It records the officer’s findings, the relevant facts, the legal basis and the amount confirmed or otherwise determined. Section 75(6) requires the order to set out the relevant facts and the basis of the decision. An electronic summary such as DRC-07 may accompany a listed order, but the summary does not replace the complete order.
The phrase “tax assessment order” is broader than a section 73 or 74 demand determination. It may refer to a best-judgment assessment under section 62 or 63, or a summary assessment under section 64. Therefore, identify the section, tax period, document date and whether the document seeks a response or announces a decision before deciding what it means.
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Demand notice and assessment order compared
| Point | Demand or show-cause notice under sections 73/74 | Determination or assessment order |
|---|---|---|
| Function | Proposes tax, interest and any applicable penalty and asks why the amount should not be recovered. | Records the officer’s decision under the statutory route invoked. |
| Procedural stage | Before final determination of the contested liability. | After the applicable notice, reply and hearing process, or under a special assessment route. |
| Immediate task | Check the alleged facts, legal grounds, periods and calculations; reply using the stated procedure and request a hearing in writing if needed. | Read the findings, reasons, confirmed amounts and payment or appeal directions; identify the available remedy and its current deadline. |
| Common electronic summary | DRC-01 accompanies specified notices under the Rules. The detailed notice remains important. | DRC-07 summarizes specified orders and amounts payable. Assessment routes may use ASMT forms. |
| Can it be challenged? | Contest the proposal in the proceeding; do not treat the notice as an appealable final order merely because it shows a figure. | Review, correction, withdrawal or appeal depends on the section, facts, tax period and current law. |
| Key caution | The proposed amount is the department’s case, not an established finding before adjudication. | Not every order called an assessment order arose from a section 73/74 proceeding. |
What a section 73 or 74 demand notice does
Section 73: stated non-fraud grounds
Section 73 covers tax that was not paid or was short paid, an erroneous refund, or input tax credit that was wrongly availed or utilised for reasons other than fraud, wilful misstatement or suppression of facts to evade tax. The proper officer sets out the department’s proposed tax, interest and penalty and calls for an explanation. Your response should address both the legal basis and the arithmetic rather than simply disputing the final total.
Section 74: the department alleges fraud-related conduct
Section 74 applies where the stated basis is fraud, wilful misstatement or suppression of facts to evade tax. The notice should identify the allegation and proposed amounts. Until adjudication, describe these as allegations made by the department, not as proven misconduct. The section cited affects the issues you must answer and the consequences of accepting, contesting or correcting the position, so do not treat a section 74 notice as interchangeable with a section 73 notice.
What the notice should enable you to check
- The statutory section and the tax periods covered.
- The transactions, returns, credit claims, refunds or other facts relied on.
- The proposed tax, interest and penalty, with the calculation period and basis.
- The deadline, reply channel and instructions for a personal hearing.
- The documents or data on which the officer says the proposal is based.
A DRC-01 entry is an electronic summary associated with specified notices. It is a useful form clue, but a number on the portal cannot tell you whether the proceeding is legally under section 73, section 74 or another provision. Preserve the served notice, annexures and portal acknowledgements together.
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Why “assessment order” can mean several different routes
The CGST Act uses assessment provisions for situations that do not follow the ordinary section 73/74 demand sequence. The correct response depends on the route printed on the document.
| Section | Triggering circumstance | Process and form clues | Important point |
|---|---|---|---|
| 62 | A registered person fails to furnish a specified return despite a notice under section 46. | Best-judgment assessment. CBIC assessment rules identify ASMT-13 for the assessment order. | A valid return furnished within 30 days after service of the assessment order is treated by the Act as withdrawing that order; specified interest and late fee remain payable. Confirm that the current law and your facts satisfy the conditions. |
| 63 | A taxable person is liable to register but is not registered, or registration was cancelled even though tax liability remains. | Best-judgment assessment with an opportunity of hearing. CBIC guidance describes a notice in ASMT-14 and an order in ASMT-15 after time to reply. | The hearing opportunity is part of this route. The forms do not, by themselves, establish the amount or replace the underlying order. |
| 64 | Special cases in which the officer has evidence of liability and delay could adversely affect revenue. | Summary assessment subject to the Act’s permission requirement and specified procedure. | The Act provides a route to seek withdrawal in the circumstances it specifies. Check the actual order and current provisions rather than assuming the section 73/74 timeline applies. |
An order under section 73 or 74 is a determination order for that demand proceeding. It may be described informally as an “assessment order,” but the precise section controls the procedure. Conversely, an ASMT-13, ASMT-15 or section 64 order should not be treated as if it followed a section 73/74 show-cause notice.
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How to read the form numbers without misreading the case
GST forms are procedural signposts, not substitutes for the statute and full document. Under the Rules, the common demand-related forms include:
- DRC-01: an electronic summary accompanying specified notices.
- DRC-02: a summary of specified statements.
- DRC-03: an intimation used for specified voluntary or payment actions.
- DRC-04: an acknowledgement described in the Rules.
- DRC-05: used to conclude proceedings in the early-payment circumstances stated in the Rules.
- DRC-07: an electronic summary of specified orders showing amounts payable.
Assessment guidance identifies ASMT-13 for a section 62 order and ASMT-14 followed by ASMT-15 for the section 63 notice-and-order sequence. For an appellate order, APL-04 is the summary accompanying the order and indicates the final demand confirmed under the appeal rules. The applicable form version can depend on the tax period and amendments; verify the current Rules before relying on a form label.
What happens between a notice and an order
1. The department states its proposed case
For a section 73 or 74 proceeding, the notice identifies the alleged short payment, erroneous refund or input-tax-credit issue, the statutory ground and the proposed amounts. Read the detailed notice and every attachment, not just the DRC-01 summary.
2. You assemble a factual and legal reply
Reconcile the proposal with returns, invoices, ledgers, payment challans, credit records, correspondence and relevant contracts. Separate disagreements about facts from disagreements about interpretation. If the period, registration, place of supply or credit ledger information is wrong, identify the exact record that demonstrates the error.
3. You use the stated reply channel and preserve proof of filing
Follow the portal or service instructions in the document. Save the submitted reply, attachments, acknowledgement number, service records and screenshots or downloaded copies. A response that cannot later be proved may create a separate procedural problem.
4. You request a hearing when one is needed
Section 75(4) states: “An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.” Make a written request if an oral explanation, document clarification or response to a new issue is necessary. Do not assume that a portal reply alone communicates that request unless the procedure says it does.
5. The officer issues the determination or assessment order
The order should explain the relevant facts and the basis for the decision. It should identify which parts of the proposal are accepted, rejected or modified and show the resulting tax, interest and penalty. Section 75 also limits an order: it cannot demand more than the amount stated in the notice or confirm a demand on grounds outside those specified in the notice.
6. You check the order and the electronic summary
Compare the signed or served order with DRC-07 or the relevant ASMT form. Check the tax period, statutory section, calculation, interest dates, penalty, service date and any directions about payment or further remedy. If the summary and order conflict, obtain clarification promptly and preserve both records.
Section 75 safeguards that explain the difference
Section 75 supplies general rules for determination under the Act. The hearing safeguard applies when a written request is received or an adverse decision is contemplated. The reasoned-order requirement means the officer must state the relevant facts and basis, rather than merely reproducing a number. The notice-and-order boundary prevents the final order from increasing the demand beyond the amount proposed or switching to grounds that were not put to you.
These safeguards do not mean every notice is defective or every order is automatically invalid. They tell you what to examine: whether you had a fair chance to answer the case, whether the order deals with your material reply, whether the reasoning matches the statutory section and whether the confirmed amount stays within the notice’s scope.
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- Authenticate the document. Download it from the official GST portal or preserve the served communication and its attachments. Record the date and method of service.
- Mark the section and form. Write down whether it cites section 73, 74, 62, 63, 64 or another provision, and whether it is labelled DRC-01, DRC-07, ASMT or something else.
- Build a period-by-period reconciliation. Match the proposed or confirmed tax with returns, books, invoices, credit ledgers, refund records and payments.
- Check the allegations line by line. For a section 74 notice, address the specific fraud, wilful-misstatement or suppression allegation rather than replying only to the tax calculation.
- Prepare evidence and a written explanation. Explain facts, law, computation and the relief sought. Identify documents by page or transaction where practical.
- Request a hearing in writing if required. State why the hearing is necessary and keep the acknowledgement.
- Meet the stated response date or seek lawful relief promptly. Do not assume that a deadline for one statutory route applies to another.
- After an order, map the remedy. Check whether the route provides correction, withdrawal, payment treatment or appeal, and verify the current deadline from the order and law.
For a live dispute involving substantial tax, alleged fraud, cancelled registration, missing records or a potential appeal, an Indian GST practitioner or tax counsel can review the actual notice, evidence and service history. Professional review is optional but may be sensible where a generic form explanation cannot capture the facts.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common mistakes and how to avoid them
Treating DRC-01 as the final demand
DRC-01 is a summary accompanying specified notices. It signals a proceeding, but it is not a reason to ignore the detailed notice or assume the amount is finally payable.
Calling every order a section 73/74 order
Sections 62, 63 and 64 address different assessment situations. Start with the statutory section, not the informal label used by a portal message or internal accounting note.
Ignoring the tax period and version of the Rules
Forms and procedures can be amended. The CGST Rules source used for common form descriptions is amended through 1 January 2022, so later changes must be checked before giving or acting on current compliance instructions.
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A spreadsheet may disprove the arithmetic while leaving the alleged statutory violation unanswered. Address the facts, the section and the calculation separately.
Missing the hearing safeguard
If an explanation requires oral clarification or the officer is contemplating an adverse decision, make the hearing request in writing and retain proof. Do not rely on an assumption that a hearing will be arranged automatically.
Assuming an order ends every remedy
An order is a determination, but review, correction, withdrawal or appeal may be available depending on the route and facts. Conversely, not every route has the same deadline or consequence. Read the order’s remedy instructions and verify the current law.
Central, state, union-territory and integrated GST considerations
This explanation uses the central CGST framework. State GST, Union Territory GST and IGST provisions generally interact with it, but the authority, form, tax period and jurisdiction in an actual matter can change what applies. Confirm the legislation and current Rules for the relevant jurisdiction before filing a reply, paying an amount or calculating an appeal deadline.
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A practical decision framework
| If the document says… | Read it as… | Your first question |
|---|---|---|
| “Show cause,” “why should tax not be demanded,” section 73 or section 74, often with DRC-01 | A proposed demand proceeding. | What facts, legal ground and amount must I answer, and how do I request a hearing? |
| Section 62 or ASMT-13 after non-filing despite section 46 notice | A best-judgment assessment for a registered person’s specified return failure. | Can the statutory return-within-30-days consequence apply on these facts, and what interest or late fee remains? |
| Section 63, ASMT-14 or ASMT-15 | A best-judgment assessment involving an unregistered or cancelled-registration taxable person. | Was the required hearing opportunity provided, and is the assessed basis supported? |
| Section 64 | A summary assessment in a special revenue-protection situation. | What permission, withdrawal route and current procedural conditions apply? |
| “Order,” “amount payable,” DRC-07 or an appellate summary APL-04 | A recorded determination or appellate result, not merely a proposal. | What findings, amount, service date and remedy instructions control my next step? |
Questions to verify before you act
- Is the document complete, including annexures and relied-on data?
- Which section is cited, and does the narrative match that section?
- Is the figure proposed or confirmed?
- Which tax periods and registrations are covered?
- What date counts as service for the applicable procedure?
- Have you requested a hearing in writing where necessary?
- Does the order explain the facts and reasoning and stay within the notice’s amount and grounds?
- Which current rule governs payment, correction, withdrawal or appeal?
The safest reading is therefore document-first: identify the statutory route, distinguish a proposal from a determination, preserve every date and attachment, and then choose the response or remedy that belongs to that route. A form number can help you navigate the portal, but it cannot answer the legal question on its own.
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