SOP for Demand creation, Set off & Temp ID creation (DRC-07)- Assessment and Adjudication

Introduction

DRC-07 is the summary of all orders. Every order which ultimately ends up in demand creation, liability is created through DRC-07. By submitting DRC-07 to GSTN, liability against the tax payer will be created in part B {other than return related liability} of the Liability Ledger. The same can be viewed from the GST back end by verifying the ‘’other than return liability’ of the tax payer in the liability ledger. Demand can be created through the demand creation link provided in the GSTR3A notice module and ‘belated filing of returns’ module. In all other cases demand can be created in the sub module ‘demand and Recovery’ of the adjudication module. The officer has to be followed the manual process flow which requires demand creation subsequent to the final order.

In the case of assessment of URPs, officer has to create a temporary ID/suo motu registration prior to demand creation since, demand can only be created against a registered person in GST. By creating a Temp ID, a cash ledger and liability ledger will be created in the common portal for demand creation and subsequent set off of liability by depositing cash in the cash ledger.

DRC-07 Form

A new DRC-07 can be created by clicking on the Create New button in the Demand and Recovery module.

Main Details
Name Description Remarks
GSTIN/Temp ID GSTN/Temporary ID Mandatory for creation of DRC-07. The GSTIN must be registered under Kerala SGST Act. For all others, click on “Generate Temp Id” to generate a temporary Id using the Suo motu registration form.
Legal Name Legal Name of business Non-editable. For GSTIN registered under the Kerala SGST act, the same shall be auto populated. For temporary registration, it will be a combination of first, middle and last name from Suo motu Registration.
Trade Name Trade Name Non-editable. For GSTIN registered under the Kerala SGST act and having a trade name in registration, the same shall be auto populated. For temporary registration and GSTIN registrations without trade name, it will be shown as “NIL”
Order Details
Name Description Remarks
Order Type Type of order Mandatory. The order type must be selected as Others (default)
Order Date Date of issue of order Mandatory. The date must be less than or equal to current date
Financial Year Financial Year on which the order was issued Auto filled and disabled
Order Number Order number of assessment order Mandatory. The order number is a 20-character ID, which will be auto generated.
Due Date Due date for payment of tax, interest, cess and penalty Mandatory. Due date must be with 90 days from the order date
Notice Reference Number Reference number of notice Optional
Notice Issue Date Date of issue of notice Optional
Preamble Preamble Ignore
Introduction Introduction Ignore
Submission made by notice Submission made by notice Ignore
Offences made/alleged to have been made Offences made/alleged to have been made Ignore
Discussion and Finding Conclusion Ignore
Issue Type Issues involved Mandatory. Select “If Others Please Specify”.
Others(Specify) Description of issues Optional. Description of issues may be provided.
Address Details
Name Description Remarks
Door number Door number Mandatory. House number may be provided.
Floor Number Floor Number Optional
Building Number Building Number Optional
Building Name Building Name Optional
Street Street Name Mandatory
Area Area Name Optional
City City Name Mandatory
Pin Code Pin Code Mandatory
State State name Mandatory
District District Name Mandatory
Demand Details
Note: –

1) Multiple demand details may be added for different acts, tax rates and POS

2) For SGST/CGST act, the act and tax rate combination must be unique

3) For IGST act, the act, tax rate and POS combination must be unique

Name Description Remarks
Act GST Act Mandatory. Select SGST/CGST/IGST/CESS
Tax Rate Tax rate according to the act selected Mandatory. Select from the available tax rates for SGST/CGST/IGST. For CESS, the tax rate can be any number between 0 and 99.99
Turnover Turnover under the selected act and tax rate. Mandatory. Whole number (13 digits allowed)
POS Place of Supply Mandatory. For SGST/CGST, the value shall be “Kerala”. For IGST, POS must be selected from the dropdown.
Tax Tax component Auto-calculated with formula (Tax Rate x Turnover) / 100 and round half up to the nearest whole number
Interest Interest Component Optional. Default is zero.
Penalty Penalty Component Optional. Default is zero.
Cess Cess component Optional. Default is zero
Others Others Component Optional. Default is zero.
Total Total Auto-calculated with formula Tax + Interest + Penalty +cess +Others
Tax Period
Name Description Remarks
From month Tax period from month Mandatory. Auto selected to the month of order date
From year Tax period from year Mandatory. Auto selected to the year of order date
To month Tax period to month Mandatory. Auto selected to the month of order date
To year Tax period to year Mandatory. Auto selected to the year of order date
Description of Goods
Name Description Remarks
HSN HSN code of goods Optional.
Description Description of goods Optional.
Description of Services
SAC SAC code of service Optional
Description Description of service Optional
Document Upload
Document Type Type of document Mandatory. “Demand and Recovery” must be selected.
Document Title Description of the document uploaded Mandatory. e.g. copy of assessment order.
Browse To browse the file for uploading The file must be in JPEG/PDF format with size less than 5 MB
Upload Upload button Click the upload the file to GSTN
Sign/No sign For digital signing For digital signing opt “sign”
Sign and Submit
  • DRC-07 must be signed using DSC
  • DSC must be registered prior to signing and submittingDRC-07
  • A demand Id will be generated after successful submission of DRC-07 and the user will be redirected back to the list of DRC-07/demands generated

Suo motu Registration Form

The Suo motu registration form is displayed when the officer clicks on Generate Temporary Id  link during creation of DRC-07.

Basic Details

Name Description Remarks
Case No. Auto generated Mandatory
Date Date of suo-motu registration/ Temp-ID creation Mandatory
Brief description of the case Brief description of the case Mandatory

Person Details

Name Description Remarks
First Name First Name Mandatory
Middle Name Middle Name Optional
Last Name Last Name Optional
Father’s First Name Father’s First Name Mandatory
Father’s Middle Name Father’s Middle Name Optional
Father’s Last Name Father’s Last Name Optional
Gender Gender Mandatory
Date of Birth Date of Birth Mandatory

Address Details

Name Description Remarks
Building /Flat No Building /Flat No Mandatory
Floor No Floor No Optional
Building Name Building Name Optional
Road/Street/Lane Road/Street/Lane Mandatory
Locality Locality Mandatory
State State Mandatory
District District Mandatory
Pin code Pin code Mandatory
Contact Details
Name Description Remarks
Mobile Number Mobile Number Mandatory. The temporary Id and password for initial login shall be sent to this
mobile number
Email Address Email Address Mandatory. The temporary Id and password for initial login shall be sent to this email Id
Identification Details
Name Description Remarks
Do you have a PAN number? Yes or No based on PAN availability Mandatory
PAN PAN If Yes is selected above, then Mandatory otherwise Optional
Other ID Type Aadhaar No/Voter Id/Passport No/Driving Licence No/Other Mandatory if PAN is not available
Other Id Card No Card number of Aadhaar No/Voter Id/Passport No/Driving Licence No/Other Mandatory if PAN is not available
Other ID Card Name Name as shown in Aadhaar No/Voter Id/Passport No/Driving Licence No/Other Mandatory if PAN is not available
Document Upload
Mandatory
Seized Document Upload
Optional
Sign and Submit
  • Suo motu registration form must be signed using DSC
  • DSC must be registered prior to signing and submitting Suo motu registration
  • A temporary Id will be generated after successful submission of Suo motu registration form and the user will be redirected back to the list of DRC-07 form along with the temporary Id generated

User Interface Flow

Demand and Recovery menu

Click on Demand and Recovery menu in the adjudication module.

User Interface Flow

DRC-07 List View

The demand and Recovery module will be shows the list of DRC-07 drafted or submitted. The draft DRC-07 records shall have the status Draft. The DRC-07 submitted to GSTN will have a demand Id created and the status can be Open, Partial Setoff, Full Set off.

a. Open: Demand is created and no set off is attempted

b. Partial Setoff: Demand was partially set off using available cash and credit.

c. Full Set off: Demand was fully set off and no liability is pending against the demand

DRC-07 List View

Create new DRC-07

Click on the Create New button to create a new DRC-07

Create new DRC-07

Provide a GSTN for which DRC-07 must be created. Click on Search button. If the person does not have a GSTIN registration, a temporary Id may be generated by clicking the Generate Temp Id link (See Suo motu registration).

Generate Temp Id link

The Legal name and trade name will be displayed. Click on Save and Continue.

Save and Continue.

The Order Details form will be opened as shown.

Order Details

Fill in the Order Details and click on Save and Continue button. In the ‘issue’ field you can select the issues from the drop down provided. If you select the option ‘others’, then you have to specify the issue briefly in the column provided for the same.

Order Details and click on Save and Continue button

When you click the save & continue button, a confirmation box will appear to confirm whether you have manually issued the order. You continue the process of demand creation by clicking the ‘confirm’ button.

clicking the confirm button

On confirmation the order details , the system will navigate to ‘address details ‘ page where you have to enter the address details of the tax payer. Red coloured asterisks glyphs shows the mandatory fields . Fill in the Address details and click on Save and Continue button.

Address details

After entering the address details , it will navigate to ‘Demand Details’’ where you have to enter the demand details. Click on ‘Add New’ button to add a new demand row. Select Act, Tax Rate and enter the turnover, select POS (Only for IGST/Cess). The tax will be automatically calculated and displayed. Enter penalty amount and the total will be re-calculated. After entering the SGST demand details , Click on Add New to add the CGST demand details. Like wise you can enter the demand details for multiple rate by using ‘ADD NEW’ button. If you proceed to click ‘save & continue’ with out adding the corresponding SGST or CGST demand details a pop up will appear ‘do you wish to add’ by selecting the ‘ok’ you add the details.

In the case IGST demand only, you have to select the ‘place of Supply’ from the drop down provided. In all other cases the POS will kerela by default

Demand Details

Demand Details 1

In the case of cess, you have to enter the rate of cess if applicable and in all other cases you to provide the rate as zero and enter the cess amount in the field provided.

From GST DRCO7

Finally , the grand total will be displayed at the bottom. Then Click on Save and Continue button.

In the Tax Period tab , the order month and year will be auto populated/ or enter the period details and then Click on Save and Continue.

Save and Continue 1.

In Goods Details form, click on Add New to add a new goods entry. You can enter any number of goods details by using the ’ add new’ button. Click on the Search button to search and select an HSN code matching the description.

Goods Details

Click on the Search button to search and select an HSN code matching the description.

HSN code

From the HSN picker click the ‘select ‘ button to choose the most meaningful commodity.

HSN picker click the ‘select ‘ button

The description can be modified to a meaningful commodity name if required. Click on Add New button to add more goods. Then click on Save and Continue button.

Add Services details like Goods details and click on Save and Continue.

Services details

In Document Upload form, the supporting order copy {Assessment order} may be uploaded in PDF format. Provide a document title, click on Browse button to select the file and the click on the Upload button to upload the file to GSTN. After successful upload, the thumbnail preview of the document is shown below. The document may be previewed by clicking on the thumbnail.

Multiple supporting documents may be uploaded. Click on Save and Continue button.

Multiple Supporting document upload

The Sign and Submit page shows the officer details as shown below. Click on Sign and Submit button to proceed with sign and submit.

Click on Sing and Submit Button

Make sure DSC token is connected for digital signature and then click on Sign and Submit. A DSC pin dialog will be shown. Enter the PIN and click OK to sign and submit DRC07. A demand Id will be generated, and a tax liability shall be created in the tax liability ledger of the GSTIN/Temporary registration. Click OK to return to the DRC07 list.

GSTIN-Temporary registration

View and export submitted DRC07

A DRC-07 in draft state can be opened by clicking on the ID link for finalization and submission. Once submitted, a summary of DRC-07 along with PDF report may be generated by clicking on the ID.

View and export submitted DRC07

DRC-07 Submitted View

To export DRC-07 to PDF format click on Export to PDF button.

Export to PDF

View Demand Summary

To view the demand summary, click on the Demand ID in the list of demands.

View Demand Summary 1

The Demand Summary page shows the original demand along with the current outstanding demand. If the demand outstanding is greater than zero, the officer can proceed to set off the outstanding demand by clicking on Proceed to Set off button.

Proceed to Setoff

Suo motu Registration

Suo motu registration can be used to generate a temporary Id to raise demand against unregistered persons. To create temporary Id, click on Generate Temporary Id link

Generate Temporary Id

The Suo moto registration form will be displayed. Fill the Basic Details, Person Details, Address Details, Contact Details and Identity Details.

Basic Details, Person Details, Address Details, Contact Details and Identity Details

Upload a memo document and click on the Submit button to sign and submit the suo motu registration request to GSTN.

Submit button

After successful generation of temporary Id, the temporary Id is shown in the text box to continue DRC07 generation as shown below

continue DRC07

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