Unsettled GST tax demand after payment? Use new form to adjust tax amount

With the introduction of new form GST DRC-03A, it will now be much easier to apply toward settling their tax obligations

The Goods and Services Tax Network (GSTN) has introduced a new form, GST DRC-03A, to allow taxpayers to offset tax demand amounts that have already been paid in response to a specific GST demand order.

 

“The new Form DRC-03A benefits taxpayers by ensuring their payments are accurately recorded against specific demands raised by the GST authorities. Previously, many taxpayers used Form DRC-03 for these payments, which didn’t allow them to enter the Demand Order Number, causing the demand to still show as unpaid in the Electronic Liability Register. The DRC-03A form includes a field for the Demand Order Number, allowing payments to be correctly linked to the relevant demand and resolving this issue,” said Ankit Jain, partner, Ved Jain & Associates (a Chartered Accountancy Firm).

 

For example, if you have an outstanding GST demand order of Rs 500 and you've already paid Rs 100 through the DRC-03 form, you can use the DRC-03A form to apply this Rs 100 payment toward the demand order. This will reduce your remaining tax liability to Rs 400.

 

“Taxpayers will be required to enter the ARN of the DRC-03 along with the relevant demand order number on the portal. Upon entering the ARN and selecting the demand order number of any outstanding demand, the system will auto-populate relevant information of the DRC-03 form as well as from the specified demand order against which the payment is to be adjusted,” Amit Bansal, partner, Singhania & Co.

 

Step-by-step filing guide for GST Form DRC-03A

 

Login to the GST portal:

 

Access the GST portal and log in with your credentials.

 

Navigate to Form GST DRC-03A:

 

Go to services > user services > my applications.

 

Select FORM GST DRC-03A.

 

Enter DRC-03 Number:

 

Enter your DRC-03 number and click Search.

 

Details related to DRC-03 will display, including the date of filing, cause of payment, period (from & to), and the DRC-03 balance as of the date.

 

Select demand order number:

 

From the drop-down, select the demand order no. to view any outstanding demands.

 

Upon selection, information like demand order date, order type, period (from & to), and outstanding demand as on date will appear.

 

Adjustment of demand:

 

Click on adjustment of demand to proceed.

 

You will see tables for entering/editing demand details:

 

Table A: Outstanding Demand.

 

Table B1 to Table B3: Cash payments (paid, to be adjusted, and balance post-adjustment).

 

Table C1 to Table C3: Credit payments (paid, to be adjusted, and balance post-adjustment).

 

Table D: Outstanding demand post-adjustment.

 

Verification and upload:

 

Verify the details in Tables A, B, C, and D.

 

Click validate after verification.

 

If needed, upload any supporting documents.

 

Undertaking & verification:

 

Sign the undertaking & verification.

 

You can preview, save draft, or proceed to file.

 

Submission:

 

Click proceed to file and use DSC/EVC to submit the form.

 

An acknowledgment will be generated upon successful submission.

 

Ledger adjustment:

 

Entries from the DRC-03A will reflect in the electronic liability ledger.

 

A single DRC-03 can adjust payments for multiple demands or vice versa.