Begin with an amount already legally recoverable
Rule 142B addresses an unpaid tax or interest amount that has become recoverable under section 79, including the stated section 75 read with Rule 88C route. DRC-01D is the recovery intimation in this rule. This guide, checked on 28 October 2026, develops the outstanding-balance workpaper after that threshold is established. A displayed return mismatch alone does not prove every condition for recovery; trace the actual legal basis and preceding record before calculating what remains payable. ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions.
Preserve the intimation and its seven-day clock
Rule 142B(1) directs payment through the electronically issued intimation within seven days of its date, with the stated posting in Part II of PMT-01. Sub-rule (2) treats the intimation as the recovery notice. Preserve the complete document, date, GSTIN, periods, heads and portal entry. Diary an early payment/reconciliation target. The date illustration excludes the trigger date and assumes no applicable special extension; it is not a universal rule adding seven working days or counting from a later internal email. ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions.
Make the legal chain reviewable
Build a document sequence from the liability's source to the asserted recoverable amount. Identify whether the source is the stated Rule 88C situation or another legally established route. Keep a reconciliation explanation, an actual determination and a recovery notice as separate records. Do not treat a DRC-01C credit difference as having identical automatic recovery consequences: Rule 88D has its own stated demand route. A classification mistake can send a team to the wrong response process even where its arithmetic is correct. ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions.
Use separate tax and interest ledgers
Record intimation principal and interest, later lawfully quantified interest, verified payments, adjustments and prior recoveries by period and head. An amount transferred to the cash ledger is not automatically proof that the relevant liability was discharged. Match the actual debit, payment reference and liability posting. Similarly, a payment made against another period cannot be relabelled against this intimation just to reduce the balance. The models stipulate legally payable interest figures; they do not prescribe an interest rate or replace the calculation of applicable dates and bases. ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions.
Recover only the amount that remains unpaid
Sub-rule (3) refers to the unpaid amount after expiry and identifies the applicable recovery rules, including Rules 143–147, 155–157 and 160. Reconcile earlier recoveries as carefully as voluntary payments. A payment and a recovery that refer to the same underlying discharge must not be counted twice; two distinct discharges must not be ignored. The workpaper should show the source, date and allocation of each reduction and a separately identified disagreement, rather than an unexplained net total. ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions.
Keep objections and closure evidence separate from assumptions
If the intimation includes a paid amount, a wrong period or another supported error, preserve the evidence and use the available communication or correction process appropriate to that record. An internal objection does not itself prove that recovery is stayed, cancelled or corrected. Equally, a zero reconciled principal does not automatically settle outstanding lawful interest. Close the matter only against actual payment/recovery records and the relevant liability status, while independently reviewing any operative order, stay or adjustment. ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions.
Applicable primary references
ICAI GST Act(s) and Rule(s), April 2026: CGST Rule 142B and related recovery provisions
Six worked illustrations
All facts and amounts below are fictional. Assumptions describe the model, not additional statutory rules.
Illustrative example 1: Diary seven calendar days
Assume DRC-01D is dated 1 October 2026 and the stipulated count excludes that date, with no special extension. Seven days ends on 8 October 2026. The model does not replace checking the actual intimation's date, terms and any legally applicable relief.
Illustrative example 2: Allocate a partial principal payment
Assume the legally recoverable intimation contains tax ₹3,00,000 and separately established interest ₹12,000. A verified ₹2,00,000 payment is allocated entirely to principal. Remaining tax is ₹1,00,000, interest ₹12,000 and total ₹1,12,000, assuming no further interest accrual or adjustments.
Illustrative example 3: An interest-only balance
Assume an independently established interest-only intimation of ₹24,000 and verified discharge of ₹10,000 against that interest. The remaining stated amount is ₹14,000. It is not reduced again by a tax payment already applied to a different liability.
Illustrative example 4: Payment made but posting unreconciled
Assume stated principal ₹1,20,000 and proven discharge of ₹50,000 against that same liability, although the displayed balance still shows ₹1,20,000. The reconciled principal is ₹70,000 and the posting difference is ₹50,000. Obtain correction/allocation evidence; this workpaper does not itself alter the portal or create a stay.
Illustrative example 5: Include a distinct prior recovery
Assume original tax ₹4,00,000, verified voluntary payment ₹1,00,000 and a separate verified recovery ₹80,000, with no overlap. Remaining tax is ₹2,20,000. Treating the recovery as irrelevant would overstate outstanding tax by ₹80,000.
Illustrative example 6: Prove a zero principal balance
Assume tax ₹2,50,000 is discharged by two distinct correctly allocated amounts of ₹1,50,000 and ₹1,00,000. Remaining principal is zero. That finding requires checking interest separately and preserving the actual discharge and liability-status records.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Identify the actual notice | DRC-01D, GSTIN, date and periods |
| 2 | Establish the recovery basis | Section 79 liability and preceding legal record |
| 3 | Separate the statutory route | Rule 88C or other applicable basis, not an assumed Rule 88D shortcut |
| 4 | Preserve the seven-day target | Intimation date, calendar and any actual relief |
| 5 | Match PMT-01 posting | Part II entries by head and period |
| 6 | Separate tax and interest | Independently supported principal and interest calculations |
| 7 | Trace actual payments | Debit/reference and correct liability allocation |
| 8 | Trace earlier recoveries | Independent discharge proof and no duplicated reduction |
| 9 | Reconcile outstanding and disputed amounts | Balance bridge, evidence and actual stay/correction status |
| 10 | Verify closure or further recovery status | Operative records rather than an internal spreadsheet alone |
Sixteen practitioner FAQs
1. What is DRC-01D used for in this guide?
Rule 142B's intimation of the stated unpaid amount already recoverable under section 79.
2. Is it the same document as DRC-01B?
No. Preserve each document's distinct role and the legal sequence linking any Rule 88C case to recovery.
3. Can every GSTR mismatch be treated as a recoverable debt immediately?
No. Establish the actual statutory basis and procedural conditions instead of inferring them from a numerical difference.
4. Does Rule 142B cover only the Rule 88C route?
Its wording also refers to amounts otherwise recoverable under the stated framework.
5. What period does the intimation rule state?
Seven days from the date of the intimation; check the actual document and any applicable legal relief.
6. Is that automatically seven working days?
The rule's stated period is seven days. Do not substitute a working-day formula without an applicable basis.
7. Where does the rule provide for posting the amount?
Part II of the Electronic Liability Register in FORM GST PMT-01.
8. Does the intimation itself have a recovery-notice role?
Yes. Sub-rule (2) expressly gives it that role.
9. What happens under sub-rule (3) after expiry?
The rule directs recovery of the amount remaining unpaid through its specified recovery-rule routes.
10. Does depositing cash always prove discharge of this liability?
No. Trace the actual debit and allocation against the correct head, period and liability.
11. Should interest be mixed into the principal reconciliation?
Keep separate balances so principal reductions do not silently eliminate unpaid lawful interest.
12. Can a payment against another period be deducted automatically?
No. Establish a valid allocation or adjustment rather than moving it only in an internal schedule.
13. Should an earlier distinct recovery be included?
Yes. Verify it and avoid recovering the same liability again through an overstated outstanding balance.
14. Does emailing an objection automatically stay recovery?
No. Preserve evidence of any actual operative stay, correction or other legally effective relief.
15. Is DRC-01C governed by identical automatic recovery wording?
No. Rule 88D has its own demand route; do not transfer Rule 88C consequences mechanically.
16. What proves that the matter is closed?
Actual discharges, any interest settlement and the relevant liability/proceeding status, supported by records.
Conclusion
Check the legal recovery basis, separate tax from interest, reconcile actual payments and establish the amount still unpaid before acting on a DRC-01D intimation.