FORM DRC-03: APPLICABILITY AND PROCEDURE
What is form DRC-03?
DRC-03 is a payment form in which a taxpayer can pay the tax by raising its liability voluntarily or in response to the show cause notice (SCN) raised by the Department. Below is the format of Form DRC-03:
When should a taxpayer make a payment in DRC-03?
Form DRC-03 is filed for making a voluntary payment of outstanding liabilities u/s 73 and 74 of the CGST Act. A taxpayer can self ascertain the tax before issuance of SCN or within 30 days of SCN determination to avoid the hassles of demand and recovery provisions.
Section 73 - deals with cases where there is non-payment/under-payment of tax without any intention or invocation of fraud.
Section 74 - deals with cases where there is non-payment/under-payment of tax with intention or invocation of fraud.
Prerequisites before filing DRC-03
Form DRC-03 is used for making a voluntary payment of tax. Voluntary payment can be made either:
Steps to file DRC-03
Step I: Login and navigate to User Services
Login to GST Portal and go to 'My Applications' under 'User Services'.
Step II: Choose either of the 3 circumstances under which a taxpayer makes payment:
Case 1: A taxpayer has not made any payment and does not have a payment Reference Number (PRN).
Case 2: A taxpayer has generated PRN but is unutilized and comes for payment within 30 minutes of generation of PRN.
Case 3: A taxpayer has generated PRN and is unutilized and the taxpayer comes for payment after 30 minutes of generation of PRN.
Steps to be performed for Case 1:
Step (a) Select the Application Type as ‘Intimation of Voluntary Payment - DRC-03’ and then click ‘New Application.’
Step (c) Select the Section under which payment is being made, the Financial Year and then select the from date and to date of the overall tax period.
Step (d) Provide details of payment including interest and penalty. A taxpayer can provide additional details by clicking on ‘Add’. Then, click ‘Proceed To Pay’.
Step (e) Voluntary payment page will be displayed which will be divided into 3 sections:
-Liability Details: Liabilities are displayed in this table.
-Cash Ledger balance: The cash balance available as on a particular date is reflected in this table. The taxpayer has to enter the value of cash to be paid from the available balance against outstanding liabilities.
Credit Ledger balance: ITC available as on date is reflected in this table. The taxpayer has to enter the value of liability to be paid through ITC and click Set Off.
Step (f) A confirmation message will pop up stating the cash and ITC balance being used up for making payment. On clicking ‘Ok’, a PRN will be generated along with a successful payment message.
Note: If PRN is not available, it can be extracted from the ‘Electronic Liability Register’ under Services>Ledgers>Electronic Liability Register.
Step (g) To view the draft DRC-03, Click the ‘Preview’ button on the page-‘Intimation of payment made voluntarily or against SCN’.
Step (h) Provide reasons if any, in the field provided. Choose a file in the attachments section to upload. Click on the verification checkbox and then select the ‘Authorised Signatory’ and enter the ‘Place’.
Step (i) Click on ‘File’. Two options will be available:
File with DSC: Browse the certificate and click on the button ‘sign’.
File with EVC: An OTP will be sent to the registered mobile number and email ID. On validation of OTP, a success message will be received along with ARN.
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