Chapter 1: Frequently Asked Questions (FAQs)

1. What is the facility for Payment on Voluntary Basis? Payment on Voluntary Basis is a facility given to tax payers to make payment u/s 73 or 74 of the CGST Act, 2017 within 30 days of issuance of Show Cause Notice (SCN). Payment could also be made by taxpayers before SCN is issued.

2. When can I make voluntary payment? You can make voluntary payment before issue of notice u/s 73 or 74 of the CGST Act, 2017 or within 30 days of issue of show cause notice (SCN) under the said sections. You cannot make voluntary payment after 30 days of issue of SCN.

3. What are the pre-conditions to make voluntary payment? The pre-conditions to make voluntary payment are:
a. In case, voluntary payment is made before issue of SCN
• Show Cause Notice under determination of tax should not have been issued.
b. In case, voluntary payment is made after issue of SCN or statement
• 30 days’ time has not lapsed since SCN is issued.

4. How can I make voluntary payment? To make voluntary payment against the liability (tax, interest & penalty) based on self-ascertainment of tax, navigate to Services > User Services > My Applications > Intimation of Voluntary Payment - DRC - 03 option.

5. Can I make partial payment against a liability raised in a SCN? GST Portal does not allow for making partial payments against a liability raised in a SCN. Complete payment of the amount being demanded in SCN has to be made.

6. Can I save the application for intimation of voluntary payment? Application for intimation of voluntary payment can be saved at any stage of completion for a maximum time period of 15 days. If the same is not filed within 15 days, the saved draft will be purged from the GST database. To view your saved application, navigate to Services > User Services > My Saved Applications option.

7. I don't have sufficient balance to make payment against a liability raised in a SCN. What do I do now? You can deposit the amount in Electronic Cash Ledger through "Create Challan" functionality available on voluntary payment screen. On clicking "Create Challan", you will be redirected to the Create Challan screen in the Payment module. Challan amounts will be auto-populated based on additional cash required.

8. What will happen on filing of Form GST DRC-03? Electronic Liability Register, Electronic Cash Ledger and Electronic Credit Ledger will be updated upon filing of Form GST DRC-03 i.e. Debit/Credit entries will be posted simultaneously and PRN will be generated.

9. How is a taxpayer communicated about the issuance of any notice/order by the system? The system sends an email and SMS to the taxpayer on issuance of any communication (Notices/Orders) by the Tax Officer.

10. When would a taxpayer need to select “Liability mismatch - GSTR-1 to GSTR-3B” and “ITC Mismatch - GSTR-2A/2B to GSTR-3B”? Select "Liability mismatch" when there is a mismatch between GSTR-1 and GSTR-3B, and "ITC mismatch" when mismatch exists between GSTR-2A/2B and GSTR-3B.
Navigate to Services > User Services > My Application > Intimation of Voluntary Payment - DRC-03, then click New Application.

1. What is Form GST DRC-03A? Form GST DRC-03A allows taxpayers to adjust payments made via DRC-03 against any outstanding demand in their Electronic Liability Register.

2. Which demand can be adjusted against the Form GST DRC-03 by Form GST DRC-03A? Demands related to Assessment, Demand, Enforcement, APL-04, Revision Order, Remand Order, and Rectification.

3. What happens if the amount in DRC-03 is equal to or less than the demand? The entire or partial amount can be adjusted as required by the taxpayer.

4. Can Form GST DRC-03A be filed if DRC-03 was filed under SCN category? No, DRC-03A cannot be filed in such cases.

5. Can I use DRC-03 more than once to issue DRC-03A? Yes, until the entire amount in DRC-03 is utilized.

6. Which types of DRC-03 payments can be offset via DRC-03A? Only those filed under Voluntary Payments and Others categories.

7. What is DRC-03 Register? A facility to track remaining balance in DRC-03 after adjustments through DRC-03A. Navigate to Services > User Services > DRC-03 Register.

8. What if I enter an invalid DRC-03 reference number in DRC-03A? You will receive an error: “Please enter a valid DRC-03 reference number.”

9. Can I enter a DRC-03 reference number with zero balance? No. Error shown: “There is no balance available in DRC-03 for adjustment against the demand.”

10. Can I enter a DRC-03 reference used in GST PMT-03A? No. Error shown: “This payment has been already utilized against FORM GSTPMT-03A.”

1. How can action be initiated against a person who collected but didn’t deposit tax? By issuing a demand to pay the tax along with interest.

2. Will I be informed of notices/orders issued? Yes, via email and SMS. They will also be visible on your dashboard.

3. Where can I view the notice?Services > User Services > View Additional Notices/Orders > NOTICES

4. Where can I reply?Services > User Services > View Additional Notices/Orders > REPLIES

5. Where can I view the order?Services > User Services > View Additional Notices/Orders > ORDERS

6. What happens after filing a reply? If found satisfactory, proceedings may be dropped. If not, a demand order will be issued.

7. What if I don’t respond or attend hearings? Reminders will be sent. After 3 reminders, a demand order may be issued.

8. What are the case statuses? Pending for action, pending for reply, reply furnished, reply not furnished, order issued, time expired, demand created.

1. What is Section 73 & 74? Section 73: For non-fraud cases.
Section 74: For fraud, misstatement, or suppression.

2. Why are proceedings initiated under these sections? Various reasons including audit, special audit, TDS non-compliance, etc.

3. What’s the procedure?

4. When are intimation messages sent to taxpayers? At each key step: DRC-04, DRC-05, SCN, DRC-01, DRC-02, DRC-06 submission, adjournments, reminders, and orders.

5. What if I make voluntary payment before SCN? DRC-04 is issued acknowledging payment. If shortfall is found, SCN may still be issued.

6. What documents are issued with SCN? SCN, DRC-01 summary, and officer’s annexure.

7. When is a Statement issued under 73/74? For different periods but same grounds as SCN.

8. Can a 74 Statement be issued where 73 applies? Yes.

9. What documents are issued with a Statement? Statement, DRC-02 summary, and any annexure.

10. How many reminders can be sent? Up to 3.

11. How to request adjournment? Offline. If approved, adjournment is updated on portal. Notification via email/SMS.

12. When should I file DRC-06? If SCN is issued and no payment is made within 30 days.

13. Can I request a personal hearing in DRC-06? Yes, by selecting “Yes” in the relevant field.

14. What happens after filing DRC-06? ARN updated, reply logged, and acknowledgment sent via SMS/email.

15. When are proceedings dropped? If payment is made or reply is satisfactory.

16. What if officer is unsatisfied with the reply? Assessment order under 73 or 74 is issued.

17. What documents come with assessment order? Order and DRC-07 summary.

18. What are the possible status updates during the case? Pending, reply furnished, not furnished, reminders issued, order passed, demand created, and expiry of time limit.