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Form GST DRC-03

Form GST DRC-03

Form GST DRC-03

The Central Government of India has introduced facilitation called Payment on Voluntary Basis through Form GST DRC-03 for the taxpayers to make payments for any causes like Audit, Investigation, Voluntary Payment, SCN, Annual Return, Reconciliation Statement or any other causes. The facility is made available on the GST tax portal for the taxpayers in filing the GST Return.

Form GST DRC-03 is a tax settlement form where a taxpayer can pay off their tax by inflating their liability voluntarily or within the 30 days of the dissemination of Show Cause Notice (SCN). The details involving the Form GST DRC-03 are as follows:

  • Tax settlement can be made voluntarily by the taxpayer for an already established liability or the Show Cause Notice (SCN) issued by the tax officials under the Sections (73) and (74) of the CGST Act 2017.
  • Section-73 handles with the cases of non-payment or underpayment of tax without any purpose or solicitation of deception
  • Section-74 handles with the instances of no-payment or underpayment of tax with the purpose and solicitation of deception
  • The voluntary payment duration varies depending upon the interest of the taxpayers. It is usually paid either within 30 days of issuance of Show Cause Notice (SCN) to prevent the difficulties of demand and recovery obligations or even before the issuance of SCN.
  • The taxpayers can save their draft of the application for intimation of voluntary payment for the maximum duration of 15 days.
  • If the taxpayer has failed to file their voluntary payment within the duration of 15 days, the saved draft would be dismissed by the tax authorities.
  • The taxpayers can make use of the input tax credit available in their e-credit ledger or the cash balance presented in the e-cash ledger. In case of any penalties, the taxpayers should stick strictly to the cash payment.
  • Once the Voluntary payment is made through Form DRC-03, the tax authorities acknowledge the payment through Form DRC-04

Application Procedure

The Form DRC-03 can be applied easily through the GST portal by carrying out the following steps,

  • Login to the GST Tax Portal
  • Select the sub-menu User Services listed under the main menu Services and go to My Applications
    • The page allows the taxpayers to choose from three cases under which the tax payment should be made.
    • Case 1-A person who hasn’t made any tax payment before and who doesn’t have any Payment Reference Number (PRN)
    • Case 2-A person who has already created PRN but has never made use of it before and attempts to make the tax payment within the 30 minutes of PRN creation
    • Case 3-A person who has already created a PRN but has not utilised it before and attempts to make tax payment after 30 minutes of the PRN generation

Click on the Intimation of Voluntary Payment-DRC-03 option available under the drop-down list Application Type and select New Application

  • The taxpayer may select from the 2 options available under the Cause of Payment option
  • Voluntary-An automatically generated date to make the tax payment appears on the screen
  • SCN – SCN Number should be registered manually and the issue date that is within 30 days of the tax payment should be chosen
  • Choose the payment mode from the Section menu and fill the tax period for the Financial Year.
  • After furnishing the relevant payment details, including the penalty and interest and click on the Proceed to Pay option to complete the action.

The Form DRC-03 can be downloaded from the link here.