Introduction: Rule 142(1) of the Central Goods and Services Tax Rules, 2017 is crucial when it comes to Goods and Services Tax (GST) compliance. The Central Goods and Services Tax Act, 2017 (CGST Act) has provisions that govern the electronic issue of notices and demands. In particular, it mandates that summaries of notices and statements be served using FORM GST DRC-01 and FORM GST DRC-02.



The following is stated in Rule 142(1) of the Central Goods and Services Tax Rules, 2017 (also known as the "CGST Rules"): - The appropriate officer shall serve, in addition to the 

(a) notice issued under section 52, section 73, section 74, section 76, section 122, section 123, section 124, section 125, section 127, section 129, or section 130, an electronic summary of the notice and order in the form of FORM GST DRC-01.


(b) a statement made in accordance with subsection (3) of Section 73 or subsection (3) of Section 74, together with an electronically generated summary in FORM GST DRC-02 that includes the specifics of the amount owed.

A summary of any notification sent under the applicable provisions, such as provisions 73 and 74 of the Central Goods and Services Tax Act, 2017 (henceforth referred to as "the CGST Act") must be submitted electronically in Forms GST DRC-01 & FORM GST DRC-02. Together with the show cause notice (u/s 52,73,74,76,122, and 123) in FORM GST DRC-01 and the statement (u/s 73(3) and 73(4) in GST DRC-02), the summary in electronic form must be provided.



In the case of Sulender Shah v. Additional Commissioner/Joint Commissioner CGST [W.P.(C)NO. 15766 OF 2023 dated December 7, 2023], the Hon'ble Delhi High Court ordered the Revenue Department to electronically issue the summary of Show Cause Notice and Demand in Forms GST DRC-01 & Form GST DRC-02. This ruling established that, in accordance with Rule 142(1) of the CGST Rules, the summary of Demand and Notice issued under Section 74 of the CGST Act must be issued electronically.


The matter in question is addressed in a previous ruling by the Hon'ble Delhi High Court, which was issued on September 21, 2023, in W.P.(C) No.12457/2023, with the caption Shubham Gupta v. Additional Commissioner/Joint Commissioner CGST, and Anr. The ruling noted that, in accordance with Rule 142(1) of the CGST Rules, any notice issued under Section 74 of the CGST Act must be accompanied by the summary, which is produced electronically in Form GST DRC-01 and Form GST DRC-02. It was also noted that, although though the electronic summary must be sent with the Show Cause Notice, providing the summary at this time while the adjudication process is still pending would be adequate compliance.


Conclusion: In summary, Rule 142(1) of the CGST Rules firmly establishes the electronic issuance of summaries in FORM GST DRC-01 and FORM GST DRC-02 as a procedural necessity. The Hon'ble Delhi High Court has issued new judicial guidelines that emphasize the requirement to submit these summaries electronically by law. These directives also stress that the regulation must be followed even when the case is still being adjudicated. It is imperative that stakeholders involved in the GST framework are aware of these electronic regulations, as failure to comply may result in legal consequences.