Weekly Indirect Tax Newsletter

INDIRECT TAX

Issue of Forms GST DRC-01 and GST DRC01A 'optional' for Proper Officer issuing order u/s 73 of TNGST Act, 2017

The Madras HC in Vishakha Exports v. Assistant Commissioner¹ , while dismissing the writ petition of the Petitioner, held that serving of Forms GST DRC01 and GST DRC-01A before passing an order under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 ("TNGST Act") is 'optional' and not 'compulsory' for the 'Proper Officer'.

The Bench observed that pursuant to the amendment to Rule 142(1A) of Tamil Nadu Goods and Services Rules, 2017 ("TNGST Rules") on and from 15th October, 2020, the expression "proper officer shall' has been amended to "proper officer may", thus making the issue of Form GST DRC-01 (Summary of SCN) and Form GST DRC-01A (Intimation of tax ascertained as payable) 'optional' at the instance of the Proper Officer.