DRC-05 – Conclusion of Proceedings

DRC-05 is issued by the Proper Officer to formally conclude proceedings under Section 73 or 74 when the taxpayer has fully paid the tax, interest, and penalty (whichever is applicable) through DRC-03. Once this form is issued, the department confirms that the case is closed for the amount covered, and no further action will be taken for that specific liability. It acts as an official closure order showing that adjudication is no longer required.

When DRC-05 Is Generated

DRC-05 appears when the officer is satisfied that voluntary payment made by the taxpayer settles the entire liability raised or expected to be raised.

• Issued when full payment is made in response to DRC-01A, avoiding the issue of an SCN.
• Issued when the taxpayer pays entire dues after receiving DRC-01 or DRC-02.
• Used when self-detected liability is voluntarily deposited and no further discrepancy remains.
• Generated even during audit or investigation if the officer considers the payment complete.

Legal Position

DRC-05 is part of the conclusion framework provided under Sections 73(8) and 74(8), which allow the officer to end proceedings upon full payment.

• Supported by Rule 142(3) of the CGST Rules.
• Issued by the same Proper Officer handling the proceedings.
• Confirms that no Show Cause Notice or further adjudication is required for the settled amount.
• Legally protects the taxpayer from reopening of the same issue for the same period.

What DRC-05 Contains

DRC-05 summarises the accepted voluntary payment and marks formal closure of the case.

• Shows GSTIN, taxpayer name, and reference to the DRC-03 payment.
• Specifies the tax, interest, and penalty amounts accepted by the department.
• States that proceedings under Section 73 or 74 stand concluded for the paid amount.
• Includes remarks from the officer confirming verification and satisfaction.
• Acts as a closure confirmation generated officially on the GST portal.

Practical Relevance

For taxpayers, DRC-05 is extremely important because it is the final document proving that no further liability remains for the issue covered.

• Protects the taxpayer from future demands on the same matter.
• If only partial payment was made, conclusion applies only to that portion.
• Helps in audit and litigation as proof of settled liability.
• Should be downloaded and preserved for compliance records.

Next Step After DRC-05

After DRC-05 is issued, the case is considered closed for the paid amount. No further reply, hearing, or adjudication is needed. Any remaining unpaid portion (if partial payment) will continue separately and may lead to DRC-07.