To address the challenges in case a taxpayer clears the outstanding demands through DRC-03 instead of “Payment towards Demand” provided on the GST portal, GSTN has introduced GST Form DRC-03A. As soon as a taxpayer gets wrong use of DRC-03, electronic liability register does not consider it as closed, where payments have been made. Under the Notification No. 12/2024, dated July 10, 2024, an amendment was brought in this regard by bringing in GST Form DRC-03A.
Now, through this form, payments made under Form DRC-03, where the reason for payment is marked as “Voluntary” or “Others,” can be directly linked to specific demand orders. The portal will ask for an ARN of DRC-03 with the demand order number. After entering the ARN, the system will automatically fill in all details of DRC-03 and the concerned order of demand on the portal.
Thus, such payments made against pending demands are seamlessly adjusted at the back end. Subsequently, the liability ledger of the taxpayer will be automatically updated so that the entries about the demand status appear accordingly. There are detailed advisories and FAQs on the GST portal that can be used by taxpayers in case they are performing this action. The Grievance Redressal Portal allows the taxpayer to file a complaint in case of technical problem under the category “DRC-03A-Filing”. New DRC-03 Register is provided through which taxpayers can view all the balances that remain available after the adjustments.
Goods and Services Tax Government of India, States and Union Territories Advisory for Form GST DRC-03A Nov 5th, 2024 1. It has been noticed that some taxpayers are making the paid amount vide DRC 07/DRC 08/MOV 09/MOV 11/APL 04 by making payment through DRC-03 where a payment facility ‘Payment towards demand’ is available on the GST portal.
This created a situation where demand is paid by the taxpayer but the demand is not closed in the electronic liability register. For this purpose, the government has notified a new form called GST Form DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024.
In this regard, GSTN has brought a new GST Form DRC-03A on GST portal wherein it is now possible to use the same to adjust paid amount through DRC-03 against the corresponding Demand Order. In this light, it is requested of the taxpayers to make payments through DRC-03A so that payment so made vide DRC-03 is got linked to the Demand Order. Only DRC-03 forms where the cause of payment is either ‘Voluntary’ or ‘Others’ can be used in GST Form DRC-03A. 3.
A taxpayer will be required to give the ARN of the DRC-03 along with a relevant demand order number in the portal. When the ARN is input, and the demand order number of any outstanding demand is selected; the system will automatically complete relevant information of the Form DRC-03 form, plus also from the specified demand order against which the payment to be made is to be adjusted. 4. Whenever adjustments are made, appropriate postings will automatically be generated within the taxpayer’s liability ledger to reflect the latest standing of demands.
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