---
title: "DRC-13 in GST: What to Do When You Get a Notice to a Third Person"
description: "DRC-13 is a GST notice under Section 79(1)(c) asking a bank, customer or debtor to pay a taxpayer's dues to the government. Steps for each side."
canonical: https://luckpanda.app/blog/drc-13-in-gst
author: "Dhrumil Barot"
author_bio: "Dhrumil is a small-business operations and compliance expert. Dhrumil built LuckPanda so small businesses can run invoicing, inventory, accounts and compliance in one place."
published: 2026-11-06
updated: 2026-11-06
category: "Tax and compliance"
keywords: "drc 13 in gst"
language: en
---

# DRC-13 in GST: What to Do When You Get a Notice to a Third Person

DRC-13 is a GST recovery notice under Section 79(1)(c) to a bank, customer or debtor. What the recipient must do, DRC-14, and how the taxpayer gets it lifted.

By [Dhrumil Barot](https://luckpanda.app/about#founder), Founder. Published 6 Nov 2026. Updated 6 Nov 2026. 5 min read.

**TL;DR:** DRC-13 is a recovery notice under Section 79(1)(c) of the CGST Act and Rule 145(1) of the CGST Rules. It goes to a third person (a bank, a customer, a tenant, anyone who owes money to a taxpayer with unpaid GST) and directs them to pay that money to the government instead. The third person pays and gets a DRC-14 certificate, or proves they owe nothing; the taxpayer gets it lifted by paying, appealing with pre-deposit, or showing the recovery started too early.

DRC-13 in GST is the form a proper officer uses to recover a defaulter's tax from someone who owes the defaulter money. If you are the bank or the customer who received it, you must pay the amount specified (up to what you owe or hold) within the time in the notice, or show in writing that you owe or hold nothing. If you ignore it, the law treats you as the defaulter. If you are the taxpayer whose account or receivables are attached, you act on the demand behind it: pay it, file an appeal with the 10% pre-deposit, or challenge recovery started within three months of the order.

## What is DRC-13 in GST?

DRC-13 is the "Notice to a third person" under Rule 145(1): "The proper officer may serve upon a person referred to in clause (c) of sub-section (1) of section 79 ... a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice." It is one of the recovery modes Section 79(1) lists for "any amount payable by a person to the Government ... not paid." In practice it is called a garnishee notice or bank attachment.

It sits late in the demand chain. A DRC-13 normally follows an adjudication order (DRC-07 summary of the demand) that the taxpayer has not paid. The forms you will see around it:

| Form | What it is | Who files or issues it |
| --- | --- | --- |
| DRC-01 | Show cause notice under Section 73 or 74 | Officer; reply in DRC-06 within 30 days |
| DRC-03 | Voluntary payment of tax, interest or penalty | Taxpayer |
| DRC-07 | Summary of the demand order | Officer |
| APL-01 | First appeal against the order | Taxpayer, within 3 months |
| DRC-13 | Notice to a third person to pay | Officer, under Rule 145(1) |
| DRC-14 | Certificate of payment to the third person | Officer, under Rule 145(2) |

![A DRC-13 comes after an unpaid demand order and ends with a DRC-14 certificate](https://cdn.sanity.io/images/pcmcvz9y/production/dc85fd20f6460984fb89a7596e5ac9df968cac70-1344x326.png?w=1200&auto=format&fit=max)

*Section 78 allows earlier recovery only with written reasons.*

## Who receives DRC-13 and what must they do?

DRC-13 goes to any person "from whom money is due or may become due" to the defaulter, or who holds money for or on account of the defaulter (Section 79(1)(c)(i)). Typical recipients:

| Recipient | What is attached | Note |
| --- | --- | --- |
| Bank | Balance in current, savings or fixed deposit accounts | No passbook or deposit receipt is needed before paying (clause ii) |
| Customer of the defaulter | Unpaid invoices owed to the defaulter | Only what is due or becomes due |
| Tenant | Rent payable to the defaulter | Pay as rent falls due |
| Insurer or post office | Policy or deposit money held | No policy document needed (clause ii) |

The rules for the recipient are in Section 79(1)(c):

1. **Read the amount and the deadline.** The notice says how much and when: "forthwith" or within a stated time, but never before the money becomes due or is held (clause i).
2. **Check what you actually owe or hold.** Compare the notice with your ledger for the defaulter's GSTIN and name. You only pay up to what you owe or hold.
3. **Pay, or reply in writing that nothing is due.** If you owe or hold nothing, prove it to the officer; clause (vii) says nothing then requires you to pay.
4. **Stop paying the defaulter.** After the notice, if you pay the defaulter instead, you are personally liable for that amount (clause vi).
5. **Collect DRC-14.** On payment, the officer issues FORM GST DRC-14 "clearly indicating the details of the liability so discharged" (Rule 145(2)). Your payment counts as made on the defaulter's authority and discharges your debt to them to that extent (clause v).

### What happens if a third person ignores DRC-13?

A third person who does not pay is "deemed to be a defaulter" for the amount, and all the Act's consequences follow (Section 79(1)(c)(iii)). That means the department can use the same recovery modes against them. The officer can also amend, revoke or extend the notice (clause iv), so ask for an extension in writing if you need time to confirm balances.

> Banks often freeze the account the day the DRC-13 arrives. A customer who receives one should tell their own accounts team the same day, so no payment to the defaulter goes out after the notice.

## What is DRC-14 and when is it issued?

DRC-14 is the "Certificate of payment to a third person." The officer issues it once the third person pays the amount in the DRC-13. Keep it with the payment record: it is your proof against the defaulter that the money was paid to the government on their account.

## How can the taxpayer get the attachment lifted?

If your bank account or receivables were attached, the DRC-13 is a symptom; fix the demand behind it. Do these in order:

1. **Get the notice and the order.** Ask the bank or customer for the DRC-13 copy and find the order it enforces in your GST portal (Services > User Services > View Notices and Orders).
2. **Check the three-month rule.** Section 78 says recovery starts only after three months from service of the order, unless the officer records written reasons for earlier recovery. In Refex Industries v. State of Maharashtra (Bombay High Court, 25 March 2026), ₹1.10 crore was debited 12 days after an order while the appeal period was open; the court called it prima facie unsustainable and directed a re-credit.
3. **Pay if the demand is right.** Pay through DRC-03 and send the payment proof to the officer with a request to withdraw the DRC-13.
4. **Appeal if it is wrong.** File APL-01 with the pre-deposit of 10% of the disputed tax (Section 107(6)). Once paid, recovery of the balance is deemed stayed (Section 107(7)), and you can ask the officer to lift the attachment.
5. **Fix the root cause if it is a supplier default.** In PVR Enterprises v. Deputy Commissioner (ST) (Madras High Court, 9 May 2026), the attachment arose from a supplier's default and ITC of ₹3,64,346; it was vacated, with conditions, after the purchaser reversed that ITC.
6. **Go to the High Court only when the officer acted without jurisdiction**, for example an attachment with no served order or a recovery inside three months without recorded reasons.

![A taxpayer picks a route to lift DRC-13 based on whether the demand is right](https://cdn.sanity.io/images/pcmcvz9y/production/71b1bcecb2b1324cf77256a058d04e9ea1eebc63-1344x456.png?w=1200&auto=format&fit=max)

*Ask the officer in writing to withdraw DRC-13 after each route.*

### How do you verify it worked?

The officer withdraws or modifies the DRC-13 and informs the bank or debtor. Confirm with your bank that the lien is removed and that your account balance is free to use; keep the withdrawal letter.

## Which earlier GST notices prevent a garnishee notice?

Act at the earlier notices, where the clock is shorter and the cost lower:

- **DRC-01B (GSTR-1 vs GSTR-3B liability gap):** reply in Part B within 7 days, by paying through DRC-03 or explaining the difference. No reply blocks your next GSTR-1.
- **DRC-01C (ITC in GSTR-3B above GSTR-2B):** the same 7 days to reverse or explain.
- **DRC-01A (pre-show cause intimation):** pay within 30 days and no show cause notice follows.
- **DRC-01 (show cause notice):** reply in DRC-06 within 30 days with reconciliations attached.
- **Order in DRC-07:** pay or appeal with the 10% pre-deposit; at the Appellate Tribunal the further pre-deposit is 10% under Section 112(8).

## Common mistakes

- **Paying the defaulter after the notice.** The recipient then owes the government that amount personally.
- **Ignoring a notice because the balance is zero.** Reply in writing; silence can make you the defaulter.
- **Fighting the DRC-13 instead of the order.** Without an appeal or payment, the demand stays enforceable.
- **Missing the appeal window.** APL-01 has a three-month limit from the order; after that, the pre-deposit stay is no longer available.

Most DRC-13s trace back to a demand the business could have caught earlier: a GSTR-1 and GSTR-3B mismatch, or ITC from a supplier who never filed. [LuckPanda's GST compliance module](https://luckpanda.app/modules/compliance/gst) prepares GSTR-1 and GSTR-3B from the same invoices and bills, and the free [GSTIN checker](https://luckpanda.app/tools/gstin-checker) helps you check a supplier's GSTIN format before you book their invoices.

Related: [compliance glossary](https://luckpanda.app/compliance/glossary), [GST calculator](https://luckpanda.app/tools/gst-calculator), [GST invoice format](https://luckpanda.app/templates/gst-invoice-format).

Sources: [Rule 145, CGST Rules](https://gstzen.in/a/recovery-from-a-third-person-cgst-rule-145.html), [Section 79, CGST Act](https://www.knowyourgst.com/gstlaw/cgst-act/79-recovery-of-tax-79/), [CBIC GST Acts](https://cbic-gst.gov.in/gst-acts.html). This guide is information, not legal advice.

## Questions

### What is DRC-13 in GST?

DRC-13 is a notice under Rule 145(1) and Section 79(1)(c) of the CGST Act that directs a third person, such as a bank or customer, to pay a defaulter's unpaid GST dues to the government from money they owe or hold for the defaulter.

### Is DRC-13 a bank attachment?

Often, yes. When it is served on a bank, the bank must pay the specified amount from the defaulter's account balance, and it usually freezes the account until it does. It can equally be served on a customer, tenant or insurer.

### Can a bank refuse to act on DRC-13?

Only by showing the officer that it holds no money for the defaulter. Otherwise it must pay, and a bank that does not pay is deemed a defaulter for that amount.

### What is the difference between DRC-13 and DRC-14?

DRC-13 is the notice to the third person to pay. DRC-14 is the certificate the officer issues to that third person after they pay.

### Can recovery under DRC-13 start right after the order?

Not ordinarily. Section 78 allows recovery only after three months from service of the order, unless the officer records reasons in writing for earlier recovery.

### Does filing an appeal stop DRC-13?

Filing APL-01 with the 10% pre-deposit of disputed tax deems recovery of the balance stayed under Section 107(7), so you can ask the officer to withdraw the attachment.

## More guides

- [GST rate changes from 22 September 2025: new slabs, transition rules and what changed since](https://luckpanda.app/blog/gst-rate-changes-september-2025)
- [What is a credit note? When to issue one and what it must show](https://luckpanda.app/blog/what-is-a-credit-note)
- [Live Chat Triggers: 10 Examples With Rules and Messages](https://luckpanda.app/blog/live-chat-triggers)

## Related tools

- [GSTIN checker](https://luckpanda.app/tools/gstin-checker): Check a GST number's format and check digit, and decode it.
- [GST calculator](https://luckpanda.app/tools/gst-calculator): Add or remove GST at any rate, with the CGST, SGST or IGST split.

## About the author

**Written by [Dhrumil Barot](https://luckpanda.app/about#founder)**, Founder. Dhrumil is a small-business operations and compliance expert. Dhrumil built LuckPanda so small businesses can run invoicing, inventory, accounts and compliance in one place. [LinkedIn](https://www.linkedin.com/in/bdhrumil) · [X](https://x.com/fyidhrumil)