DRC-24 – Intimation of Reduction or Enhancement of Recovery Amount

DRC-24 is issued when the GST department needs to adjust, reduce, or enhance the amount under recovery based on new information, appellate orders, rectification, or corrections. It is a communication from the issuing authority to the recovery officer, instructing them to modify the ongoing recovery action. This ensures that recovery is carried out strictly according to the updated legally enforceable amount.

When DRC-24 Is Used

This form is used whenever there is a change in the amount that the recovery officer must collect from the taxpayer.

• Issued when an appeal or revisional order changes the payable amount.
• Applied when rectification reduces or increases the confirmed liability.
• Used when calculation errors in the original recovery notice are corrected.
• Triggered when partial payments reduce the outstanding balance.

Legal Framework

DRC-24 ensures that recovery officers act on the correct amount after revisions, following the statutory rules.

• Governed by Rule 160 of the CGST Rules.
• Connected to recovery powers under Section 79 of the CGST Act.
• Issued by the Proper Officer or authority supervising recovery.
• Mandatory for updating recovery instructions in line with legal changes.

Details Mentioned in DRC-24

The form clearly communicates updated recovery amounts and instructs officers accordingly.

• Contains GSTIN, taxpayer name, and reference to earlier recovery orders.
• Specifies the revised amount—enhanced, reduced, or corrected.
• Identifies the reason for modification (appeal, rectification, payment, revision, etc.).
• Directs the recovery officer to adjust ongoing actions to new figures.
• Ensures that recovery continues only for the accurate balance.

Practical Importance

DRC-24 prevents excess recovery or insufficient recovery by aligning actions with the latest legal position.

• Protects taxpayer from paying more than legally due.
• Ensures department does not lose revenue when liability increases.
• Keeps recovery officers properly informed of updated amounts.
• Acts as documentary proof of corrected recovery instructions.

Action After Issuance

The recovery officer must immediately update the outstanding demand and carry out further action based on the revised amount. The taxpayer should verify that the corrected figures are reflected in their liability register and correspond to the legal order.