Frequently Asked Questions GST · Income Tax · DRT · SARFAESI

Do not reply in the first 24 hours. First, download the complete notice and every attachment from the GST portal under Services > User Services > View Notices and Orders. Identify the form (ASMT-10, DRC-01, DRC-01C, REG-17), the section invoked, the tax period and the exact reply deadline.

ASMT-10 requires a reply in ASMT-11, ordinarily within 30 days. DRC-01 requires a reply in DRC-06 within 30 days. DRC-01C, a system-generated ITC mismatch intimation, gives only 7 days. REG-17 gives 7 working days.[reference:0]

Most avoidable mistakes happen in the first day. Early legal assessment preserves every available remedy.

ASMT-10 is a scrutiny notice under Section 61. It requires a point-wise reply in ASMT-11 with reconciliation and supporting evidence for each discrepancy.

DRC-01 is a show cause notice under Section 73, 74 or 74A — a more serious stage where the proper officer proposes a demand. It requires a detailed factual and legal reply in DRC-06 with documentary support.[reference:1]

A first appeal under Section 107 must be filed within three months from communication of the order, with a further one month condonable on sufficient cause — total four calendar months. The Patna High Court has held that the GST appeal time limit cannot be extended beyond four months.[reference:2]

If dismissed on limitation, remedies include a GSTAT appeal, a Patna High Court writ, or a CBIC amnesty scheme for orders passed on or before 31 March 2023.

A first appeal in Form GST APL-01 under Section 107 requires a pre-deposit of 10% of the disputed tax. A second appeal before the GSTAT under Section 112 requires an additional 20% of the remaining disputed tax — cumulative 20% by the time you reach GSTAT.[reference:3]

Yes. A writ petition under Article 226 is maintainable where the GST action suffers from a jurisdictional error, violation of natural justice, or a patent error of law. The Patna High Court has quashed GST assessment orders for violations of Section 75(4) (opportunity of hearing) and defective service. Stay of recovery is also pursued in appropriate cases.

Yes. A DGGI summons under Section 70 of the CGST Act requires a carefully drafted response with documentary evidence. Representation is available at every stage — from the initial summons through to the final report. Pre-appearance briefing, statement preparation and post-appearance protection are all part of the engagement.

The Delhi High Court has clarified that a Section 70 summons is an inquiry — not initiation of proceedings. A person summoned does not thereby become an accused.[reference:4]

REG-17 requires a reply within seven working days. Where registration is cancelled, a revocation application is filed in REG-21 within 90 days of the cancellation order, extendable up to 270 days with Commissioner approval.[reference:5][reference:6]

The chamber handles REG-17 show cause notices, REG-18 replies, REG-19 proceedings and REG-21 revocation applications before the CGST Patna-I and Patna-II Commissionerates.

DRC-01C is a system-generated intimation of ITC mismatch between GSTR-3B and GSTR-2B. You have only 7 days to respond. The reply must include a transaction-level reconciliation, reason-wise explanation, and supporting documents — invoices, ledgers, and communication with suppliers.[reference:7]

If the mismatch is genuine and ITC was claimed in excess, pay the tax with interest at 24% per annum through DRC-03 and request the supplier to file their GSTR-1.[reference:8]

DRC-01C is a system-generated intimation under Section 38, typically issued for ITC mismatches between GSTR-3B and GSTR-2B. It gives only 7 days to respond.

DRC-01 is a formal show cause notice under Section 73, 74 or 74A, issued after human application of mind, giving 30 days to respond in DRC-06. DRC-01C is the earlier, lighter-touch step; DRC-01 is the formal demand stage.

Yes. Under Section 73(5) and 74(5) of the CGST Act, if you pay the tax with interest before a show cause notice is issued, no penalty is payable, and proceedings are concluded. If you pay within 30 days of the SCN, penalty is reduced to 15%. This is a legitimate strategy where the tax liability is admitted and the dispute is only about penalty.

A first appeal before the Commissioner (Appeals) must be filed within 30 days from the date of service of the notice of demand, in Form 35. An appeal to the ITAT Patna Bench under Section 253 must be filed within 60 days of communication of the CIT(A) order, in Form 36. A further appeal to the Patna High Court under Section 260A must be filed within 120 days.[reference:9][reference:10]

The Income-tax Act 2025 came into force on 1 April 2026, replacing the Income-tax Act 1961. However, all proceedings relating to tax years beginning before 1 April 2026 — including pending assessments, reassessments, penalties and appeals — continue under the Income-tax Act 1961 under Section 536 (Repeals and Savings). No new appeal needs to be filed.[reference:11]

Yes. Representation is available in scrutiny and faceless assessment proceedings before the National Faceless Assessment Centre (NFAC), and in response to notices under Sections 143(2), 148 and 148A. The practice covers documentation, reconciliation and written submissions.[reference:12]

Yes. Where the first appellate order is adverse, representation is available before the ITAT Patna Bench with written submissions, case law and oral arguments. The ITAT Patna Bench has ruled on condonation of delay, natural justice, and the duty of the appellate authority to decide on merits even in ex-parte matters.

A Section 148A(b) show cause notice requires a reply within 7 to 30 days, as specified in the notice. The reply must address the specific information suggesting escapement, with supporting documentation. The Patna High Court has ruled that non-response to an invalid notice under Section 148A(b) does not make the subsequent notice valid — a properly drafted reply is essential.[reference:13]

No. Unlike GST, an income tax appeal before the CIT(A) does not require a pre-deposit of the full demand. However, the assessee may need to pay the undisputed portion of the demand or apply for a stay of the disputed demand. The chamber advises on the appropriate approach based on the facts.

The ITAT filing fee is prescribed under Rule 7 of the Income-tax (Appellate Tribunal) Rules, 1963, and is based on the assessed income: ₹500 where the assessed income is up to ₹1 lakh; ₹1,500 where it exceeds ₹1 lakh but does not exceed ₹5 lakh; ₹5,000 where it exceeds ₹5 lakh but does not exceed ₹10 lakh; and ₹10,000 where the assessed income exceeds ₹10 lakh. Fee payment is made through the ITAT e-filing portal.

Section 143(1) is an automated intimation after return processing — it may show a refund, a demand, or an adjustment. It is not a scrutiny notice.

Section 143(2) is a notice for detailed scrutiny of assessment. It is issued when the case is selected for scrutiny, and requires a substantive reply with documentation. Faceless scrutiny under Section 144B is the current framework for Section 143(2) notices.[reference:14]

A revised return can be filed under Section 139(5) before the end of the relevant assessment year, or before completion of assessment, whichever is earlier. Once assessment proceedings have commenced, a revised return may not be accepted. The appropriate response at that stage is a reply to the notice with supporting documentation, not a revised return.

The ITAT Patna Bench is located in Patna and hears appeals from Bihar. Hearings are conducted in physical mode by default, with virtual hearings available on request. The bench follows the Income-tax (Appellate Tribunal) Rules, 1963, for procedure. Representation is available for hearings at the Patna Bench.

The Debt Recovery Tribunal (DRT) Patna hears two categories of proceedings:

• Section 19 RDB Act, 1993 — recovery applications filed by banks and financial institutions for recovery of debts due to them.
• Section 17 SARFAESI Act, 2002 — applications by borrowers aggrieved by Section 13(4) enforcement measures.

DRT Patna exercises jurisdiction over matters arising in Bihar. Appeals from DRT Patna orders lie before the DRAT Allahabad.[reference:15]

Yes. The defence of borrowers, guarantors and mortgagors in Section 19 recovery applications involves scrutiny of the debt quantum, interest calculation, validity of the guarantee and mortgage, and the limitation period. A counterclaim or set-off under Section 19(6) to (11) of the RDB Act can be raised within the DRT proceedings.[reference:16]

A Section 17 application must be filed within 45 days from the date of the Section 13(4) enforcement measures. The Karnataka High Court has held that the DRT cannot condone delays beyond 45 days — the period is mandatory and rigid.[reference:17]

File within 45 days wherever possible. Do not wait for physical dispossession.[reference:18]

An appeal against a DRT order lies before the DRAT Allahabad:

• Under Section 20 of the RDB Act — within 45 days, subject to the Section 21 pre deposit.
• Under Section 18 of the SARFAESI Act — within 30 days, subject to the Section 18 pre deposit.

Where the DRAT dismisses the appeal for non-compliance, the Patna High Court has held in Tirupati Storage v. UCO Bank (2026) that the DRAT can recall the dismissal under Section 22(2).

The Limitation Act, 1963 applies to DRT proceedings under Section 24 of the RDB Act. A recovery application must generally be filed within three years from the date the debt became due. Where the limitation period has expired, the bank may rely on acknowledgments or part payments to extend the period — these are factual issues examined during the proceedings.

Under Section 19(5)(i) of the RDB Act, a written statement must be filed within 30 days of service of summons. The Presiding Officer can extend the period by a further 15 days in exceptional cases and for special circumstances recorded in writing — maximum 45 days. The Delhi High Court has held that the 45-day deadline is absolute and cannot be condoned by any court.[reference:19][reference:20]

Once a recovery certificate is issued under Section 19(22) of the RDB Act, the Recovery Officer has wide powers, including:

• Attachment and sale of movable or immovable property belonging to the borrower or guarantor.
• Attachment of bank accounts.
• Arrest of the defendant.
• Appointment of a receiver for management of properties.[reference:21]

A recovery certificate can be challenged where the underlying DRT order is appealed, or where the certificate is defective. The Recovery Officer's orders are appealable under Section 30 of the RDB Act to the DRT, and the DRT's order on that appeal is further appealable to the DRAT. Independent civil suits against DRT orders are generally barred.[reference:22]

Section 19 RDB Act is the route by which a bank files a recovery application before the DRT to recover its dues. Section 17 SARFAESI is the route by which a borrower challenges Section 13(4) enforcement measures taken by the secured creditor. Both are heard by the DRT Patna, but they are procedurally distinct — one is a bank's claim, the other is the borrower's challenge.

Yes. Section 17(1) allows “any person (including borrower)” aggrieved by Section 13(4) measures to file an application. The Supreme Court in Jagdish Singh v. Heeralal has confirmed that a borrower can appeal to the DRT even if the mortgaged property belongs to a guarantor. Guarantors, mortgagors and tenants affected by enforcement measures can file a Section 17 application.[reference:23]

You have 60 days from the date of the Section 13(2) notice to either discharge the liability or make a written representation under Section 13(3A) to the secured creditor. The creditor must respond within 15 days. A well-drafted Section 13(3A) representation is the first effective defence against Section 13(4) enforcement measures.[reference:24][reference:25]

A Section 13(2) notice can be challenged on grounds including:

• Wrong amount — incorrect debt or disputed interest.
• Wrong borrower — notice issued to a person who is not the borrower or guarantor.
• Wrong account — account not properly classified as NPA.
• Defective service — notice not served per SARFAESI Act and SIER 2002.
• Limitation — enforcement action barred by limitation.

If the borrower fails to discharge the liability and the Section 13(3A) representation is rejected, the secured creditor may take Section 13(4) measures — taking possession, transferring the asset, or taking management of the business. The creditor must follow the Security Interest (Enforcement) Rules, 2002, including the mandatory 30-day sale notice under Rule 8(6) before selling the secured asset.[reference:26]

Yes. Where the secured asset has been sold, the borrower can challenge the sale before the DRT under Section 17 on grounds including:

• Non-compliance with the mandatory 30-day sale notice under Rule 8(6).
• Sale at a price below the reserve price without justification.
• Defective valuation or non-transparent auction process.
• Sale to a person connected with the secured creditor.

The Supreme Court has held that strict compliance with Rule 9 of the Security Interest (Enforcement) Rules, 2002, is mandatory for a valid auction sale.[reference:27]

Under the second proviso to Section 18(1), the borrower must deposit 50% of the amount of debt due as claimed by the secured creditor or determined by the DRT, whichever is less. The third proviso permits reduction to not less than 25% for reasons recorded in writing.

Complete waiver is not permissible — the Supreme Court in Kotak Mahindra Bank v. Ambuj A. Kasliwal has held that even the High Court cannot waive the pre deposit entirely.[reference:28]

Yes. Under Section 13(4), the secured creditor can take possession of the secured asset without court intervention. However, if the borrower resists, the creditor must approach the District Magistrate or Chief Metropolitan Magistrate under Section 14 for assistance in taking possession. The Madhya Pradesh High Court has clarified that recourse to the magistrate is only required when assistance is needed.[reference:29]

Under Section 14, the secured creditor files an application before the Chief Metropolitan Magistrate or District Magistrate for assistance in taking possession. The Supreme Court has held that the time limits in Section 14 are directory, and the CJM/DM has a statutory obligation to ensure execution of the warrant of possession, including providing police protection.[reference:30][reference:31]

Yes. Section 17(1) allows “any person” aggrieved by Section 13(4) measures to file an application. The Supreme Court in Jagdish Singh v. Heeralal confirmed that a borrower can approach the DRT even if the mortgaged property belongs to a guarantor. Tenants and other affected occupants may also have remedies, depending on the nature of their occupancy and the 2016 amendment to Section 17.[reference:32]

Rule 8(6) of the Security Interest (Enforcement) Rules, 2002, requires the Authorised Officer to serve a 30-day notice on the borrower before selling the secured asset. This notice must also be published in two newspapers. Non-compliance renders the sale liable to be set aside.[reference:33][reference:34]

The right of redemption under Section 13(8) is lost once the auction notice is published, unless the borrower deposits the entire outstanding dues along with costs before the sale is completed. The amended Section 13(8), as considered in Celir LLP v. Bafna Motors, makes publication of the auction notice particularly important to redemption rights. Once the sale is confirmed, redemption is generally not available.[reference:35]

Advocate Simran Kumari is a Patna-based advocate practising GST, Income Tax, DRT and SARFAESI law. She is enrolled with the Bar Council of Bihar (Enrolment No. BR/1115/2023) and practises before the Patna High Court, DRT Patna, DRAT Allahabad, GST appellate authorities, the DGGI and Income Tax appellate forums.

In 2024, she filed W.P.(C) 10159/2024 before the Delhi High Court seeking fair remuneration and stipend guidelines for junior advocates and interns. Following this, the Bar Council of India recommended monthly stipends of ₹20,000 for urban areas and ₹15,000 for rural areas for junior advocates.[reference:36]

Send the notice, demand, order or summons by WhatsApp or email. A same-day acknowledgment is issued, followed by a short assessment call. A written scope of the engagement and the fee arrangement is provided before any work begins.

Phone: +91 92314 45078
Email: advocatesimrankumari@gmail.com

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P.C. Colony, Kankarbagh, G-8, Patna, Bihar – 800020. The chamber is easily accessible from all parts of Patna and is well-connected to the Patna High Court, DRT Patna and the CGST Patna Commissionerates.

Yes. The chamber regularly handles matters before the Patna High Court, DRT Patna, DRAT Allahabad, GSTAT Patna Bench, ITAT Patna Bench and GST and Income Tax appellate forums across Bihar. Consultations for outstation clients can be conducted by phone or video.

A same-day acknowledgment is issued for enquiries received during office hours (10:00 AM – 7:00 PM, everyday). Detailed assessments follow within 24–48 hours, depending on the complexity of the matter.

Yes. All communications are treated as confidential. Please avoid sending sensitive documents through the contact form on the Contact page — share them over WhatsApp or email only after the chamber responds.

The fee structure depends on the nature of the matter — notice reply, application, appeal, or writ petition. A written scope and fee note is provided before any work begins. Initial consultation is available on request. Call +91 92314 45078 or WhatsApp to discuss your matter.

Yes. The practice covers four practice areas: GST (notices, DGGI summons, appeals, refunds), Income Tax (appeals, CIT(A), ITAT, reassessment), DRT (Section 19 recovery defence, counterclaims, DRAT appeals) and SARFAESI (Section 13(2) replies, Section 13(3A) representations, Section 17 applications, DRAT pre deposit).

In 2024, Advocate Simran Kumari filed W.P.(C) 10159/2024 before the Delhi High Court highlighting the economic hardship faced by junior advocates and law interns. The Court directed the Bar Council of India and Bar Council of Delhi to expedite a decision on standardised stipend guidelines. Following this, the BCI recommended monthly stipends of ₹20,000 for urban areas and ₹15,000 for rural areas for junior advocates.[reference:37][reference:38]