Applicable Section: Section 73,74 of Goods & Services Tax Act, 2017
Applicable Rule: Rule 142 (2), (3) of Central Goods and Services Tax Rules, 2017
If a person liable for tax pays the tax and interest as specified in subsection (5) of section 73, or the tax, interest, and penalty as specified in subsection (5) of section 74, or if any person pays the tax, interest, penalty, or any other amount due as per the Act (either on their own determination or as communicated by the proper officer under sub-rule (1A)), they must inform the proper officer of the payment using FORM GST DRC-03. The proper officer will then issue an acknowledgment of the payment in FORM GST DRC-04. So, in other words we can say that Form GST DRC – 03 is the form used by a taxpayer for making voluntary payments under Section 73 and 74 of GST Act or in response to a show cause notice issued by GST department.
Section 73 deals with ‘Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful-misstatement or suppression of facts’ and,
Section 74 deals with ‘Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful- misstatement or suppression of facts’
Cases where a taxpayer shall make payment in DRC-03 –
Requisites for filing DRC-03
Form DRC-03 is used for voluntary tax payments. Payments can be made either:
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