DRC-02 – Summary of Statement

DRC-02 is issued when the department wants to add new tax periods, extra tax amounts, or additional grounds after an SCN has already been issued and summarised in DRC-01. Instead of issuing a fresh Show Cause Notice, the officer issues a “statement” and uploads its summary through DRC-02. This allows the department to expand or supplement the original SCN without restarting adjudication, while keeping all additions linked to the same earlier proceedings.

When It Is Used

• Additional tax liability is identified for periods not covered in the original SCN.
• Further discrepancies or mismatches come to light during audit, scrutiny, or enquiry.
• New legal points or factual grounds are required to support the original SCN.
• The officer wants to widen the scope of an existing Section 73 or 74 notice.

Legal Basis and Authority

The law permits issuing a supplementary “statement” instead of a new SCN when the factual grounds already exist, and DRC-02 records this addition officially.

• Governed by Rule 142(1)(b) which requires uploading the summary of a supplementary statement.
• Used in continuation of proceedings under Section 73 or Section 74, matching the original SCN.
• Issued by the same Proper Officer who issued the original SCN summarised in DRC-01.
• Treated as an extension of the first SCN, not an independent adjudication process.

Information Included in DRC-02

DRC-02 reproduces the original SCN reference and specifies what has been newly added.

• Displays GSTIN, taxpayer name, original SCN reference, and newly added tax periods.
• Shows the additional tax, interest, or penalty determined after issuing the earlier SCN.
• States the additional facts or reasons responsible for the supplementary demand.
• Confirms that it is related to the same SCN issued through DRC-01 and follows identical legal provisions.
• Allows the taxpayer to respond to the new issues by filing an updated reply through DRC-06.

Practical Notes

• DRC-02 expands the existing SCN and does not cancel or replace the original.
• Only grounds connected to the original SCN can be added; unrelated issues require a fresh SCN.
• Newly added periods and figures must be verified carefully for accuracy.
• A consolidated reply may be filed covering both the original SCN and the DRC-02 additions.

Action After Receiving DRC-02

The taxpayer should review the supplementary issues, verify computations, prepare supporting documents, and file a reply through DRC-06. The adjudicating officer will consider both DRC-01 (original SCN summary) and DRC-02 (supplementary statement summary) while issuing the final order in DRC-07.