Easy Guide to Form GST DRC-03 Voluntary & SCN Payments

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Easy Guide to Form GST DRC-03 Voluntary & SCN Payments

Introduction

When aIn the process of filing a GST return , some of the GST liabilities come on the surface which was initially missed out by an individual. These additional liabilities that an individual needs to pay can be paid via provision given on the GST portal which allows us to do so. person wishes to be a designated partner in a LLP (Limited Liability Partner) at that time it is mandatory for an individual to acquire DPIN (Designated Partner Identification Number). In this article information on Documents required for obtaining DPIN, Designated Partner in LLP, Validity of DPIN, and duties of the designated partner is mentioned.

What is Form GST DRC 03?

DRC 03 is a voluntary GST payment form that is taken up by the taxpayer or when the department approached him by show cause notice (SCN). Eligible individuals can view & download the Form GST DRC 03 in PDF Format .

A Narrative on Form DRC 03 – For Voluntary and SCN Payments

GST Portal now facilitates the availability of the GST DRC-03 Form used for entering the details of voluntary payments by the taxpayer. Form DRC-03 is the form facilitating the intimation of voluntary payments made before the notice under sections 73 & 74 is issued or payments made within 30 days of issue of Show Cause Notice (SCN).

Now there is an available utility on the GST Portal which allows the user to enter his/her voluntary payments or payments made against SCN (refer Rule 142(2) S. Rule 142(3) of the CGST Rules, 2017).

DRC-03 is the form used for showing the voluntary payments or payments done against the Show Cause Notice (SCN) issued by the department or in adherence to section 142(2) and 142(3) of CGST Rules 2017.

Process to Apply Voluntary Payment for Form GST DRC-03

Let us go through the voluntary payment for GST DRC-03 Form steps of additional tax liability which has to be paid on the GST portal as per the instructions are given below along with the guided screenshots.

Step 1: Login to GST Portal > Select Services > User Services > My Applications (given in figure 1)

Step 2: Choose “Intimation of Voluntary Payment- DRC 03” available in the drop-down list of “Application Type”. Then Click on “New Application”.

Step 3: Choose either of the three options under “Cause of Payment*” (Voluntary, SCN, and Others). Once the payment is done then give PRN.

If Voluntary Payment is selected-> Select the relevant section and related Financial Year from the list

Step 4: 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 5: If the taxpayer selects Others from the options > Provide appropriate section and related Financial Year

Step 6: Once the details are properly entered, Select Period and Act (visible on the bottom of the screen). > Proceed to Pay

Payment via DRC also carries two conditions: First is Voluntary payment by a taxpayer after encountering the deficit and the second is when the taxman issues a show-cause notice (SCN) inform DRC-01 or DRC-02.

The former condition is not bounded by any time limit while in the latter case a taxpayer has to inform about the tax payment to the proper officer inform Form DRC-03 within the period of 30 days from the date of issuance of such notice.

In both cases, a Taxpayer will receive an acknowledgement by taxman about receiving the tax. Where a person has voluntarily paid the taxes, interest or other dues in form DRC03 before issuance of SCN, tax officials will intimate confirmation in 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 taxpayer needs to fill many details in DRC 03 which includes GSTIN and name; Cause of payment (Voluntary, SCN, etc.); Section under which payment is made (73 or 74.Not applicable for voluntary payment); Reference number, if SCN issued in DRC-01 or DRC-02; Financial year, tax period and ACT; and payment details including interest, penalty, and others.

Interest is also payable on the payments of these additional liabilities. “On any delayed payment, there is an interest liability. This interest can be deposited at the time of making the additional tax payment,” says Roy.

GST DRC-03 Form Payment Features on Voluntary Basis at GST Portal

Making Voluntary Payment on GST Portal: A facility is given to taxpayers to make payment on voluntary basis, through Form GST DRC-03 (refer Rule 142(2) or 142(3) of the CGST Rules, 2017). Login into GST Portal and navigate to Services > User Services > My Applications and Select the Intimation of Voluntary Payment - DRC-03, from the Application Type drop-down list.

When to make Payment Voluntary Payment: Payment can be voluntarily made by taxpayer for a self-ascertained liability or in response to the show cause notice (SCN) raised by the tax authorities, u/s 73 or 74 of the CGST Act, 2017, within 30 days of issuance of SCN or even before issuance of the SCN.

Partial Payment not allowed: GST Portal does not allow for making partial payments of the amount stated in the SCN.

Cause of Payment: Payments through Form GST DRC-03 can be made for any causes like Audit, Investigation, Voluntary Payment, SCN, Annual Return, Reconciliation Statement or Others.

Saving Draft DRC 03 Application: Draft of Application for intimation of voluntary payment can be saved for a maximum period of 15 days. If the same is not filed within 15 days, the saved draft will be purged. To view the saved application, navigate to Services > User Services > My Saved Applications option.

Using Payment Reference Number: If payment has been made and payment reference number (PRN) has been generated, but application in Form GST DRC-03 has not been filed, then in such cases, application available in 'My Saved Applications' need to be selected and using PRN already generated, it may be filed. However, if a period of fifteen days has elapsed, then, details in Form need to be filled up again. PRN generated already can be used for filing the application.

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Introduction

What is Form GST DRC 03?

A Narrative on Form DRC 03 – For Voluntary and SCN Payments

Process to Apply Voluntary Payment for Form GST DRC-03

GST DRC-03 Form Payment Features on Voluntary Basis at GST Portal

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