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GST DRC- 03 Return Filing, Format, Eligibility & Rule

What is Form GST DRC 03?

DRC 03 is a GST payment form that is taken up by the taxpayer voluntarily or when the department approaches the taxpayer by show cause notice (SCN).

When to make Voluntary and SCN Payments?

GST Portal has GST DRC-03 Form. This form is used for entering the details of voluntary payments by the taxpayer.

Form DRC-03 form is for voluntary payments that are generally made before the notice under section 73 & 74 is issued. Otherwise, payments are also made within 30 days of the issue of Show Cause Notice (SCN).

The facility is now available in the portal through which allows one can enter his/her voluntary payments. Otherwise, payments made against SCN (refer to Rule 142(2) S. Rule 142(3) of the CGST Rules, 2017) can also be entered.

Section 73 –This deals with cases where there is non-payment/under-payment of tax without any intention or invocation of fraud.
Section 74 – This deals with cases where there is non-payment/under-payment of tax with intention or invocation of fraud.

It is to be noted that the payments should be made either from input tax credit available in the electronic credit ledger or cash balance available in the electronic cash ledger. In the case of interest and penalties, ITC utilization is not available. It has to be compulsorily paid in cash.

Step by Step Process to Apply Voluntary Payment for Form GST DRC-03

Step by Step Guidance for voluntary payment for GST DRC-03 Form steps to be filed in GST portal as follows:

Step 1: Login to GST Portal > Select Services > User Services > My Applications
Step 2: Select “Intimation of Voluntary Payment- DRC 03” available in the drop-down list called “Application Type”. Then Click on “New Application”.
Step 3: Choose any one among three options under “Cause of Payment*” Options as follows:
1. Voluntary
2. SCN
3. Others.

Once the payment is done then gives PRN.
Step 4: If Voluntary Payment is selected-> select the relevant section and related Financial Year from the list.
Step 5: If SCN is selected- > Select the relevant section and related Financial Year; enter the SCN Ref No. and date (either system generated or manual)
Step 6: If the taxpayer selects others from the options > Provide appropriate section and related Financial Year
Step 7: Once the details are properly entered, Select Period and Act (visible on the bottom of the screen). > Proceed to Pay

Acknowledgment:

The taxpayer will receive an acknowledgment after receiving the tax. If a person has done volunteer tax payment tax officials will intimate confirmation through form DRC-04 to the taxpayer. When payments against SCN is done, form DRC-05 mentioning the conclusion about proceedings will be issued to the taxpayer

Can we make Partial Payments?

There is no way a taxpayer can make partial payments against his/her SCN liabilities. The complete payment of the amount raised in demand by the tax department is required to be paid by the taxpayer against his/her SCN liability.

Find your GST DRC 03 form: GST_DRC_03