During the course of filing GST Return, a taxpayer may discover additional tax liabilities that he or she may need to pay. GST tax portal has the provision that allows you to do so.
“There is a section in the GST portal that talks about user services. There you need to choose DRC 03 and then opt for annual returns. You can use this to make any additional tax deposits, but need to ensure you have sufficient funds in your electronic cash ledger while using this form to make any additional tax payments.
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.
Point to note: All the payments need to be made either from input tax credit available in electronic credit ledger or cash balance available in the electronic cash ledger. But, in case of interest and penalties ITC utilisation is not available. It has to be compulsorily paid in cash.
Prerequisites before filing DRC-03
Form DRC-03 is used for making a voluntary payment of tax. Voluntary payment can be made either:
- Before the issuance of show cause notice;
- Within 30 days of issue of SCN, in case the show cause notice is already issued
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’.