GSTN has issued an advisory on new Form GST DRC 03A which can be utilized for adjusting the amount paid through DRC-03 against the related pending demand order.
GSTN has noticed that some taxpayers used Forms DRC 07, DRC 08, MOV 09, MOV 11, APL 04, etc. via DRC-03 to pay the demanded amounts, instead of utilizing the ‘Payment towards demand’ feature on the GST portal. This resulted in a scenario in which the taxpayer has although settled the demand, but the same remains open or pending in the electronic liability register. In order to tackle this inconsistency, the government has introduced a new form called GST DRC 03A through Notification 12/2024 dated 10th July 2024.
Accordingly, GSTN has created and recently made accessible the new Form GST DRC 03A on the GST portal which can be utilized for adjusting the amount paid through DRC-03 against the related pending demand order. Hence, taxpayers have been advised by the GSTN to utilize the DRC-03A form in order to connect the payment made through DRC-03 with the relevant pending demand order. It should kept in mind that only DRC-03 forms with ‘Voluntary’ or ‘Others’ as the cause of payment are eligible for use in Form GST DRC-03A.
To proceed, Taxpayers must first enter the ARN of the DRC-03 and the relevant demand order number on the portal. After inputting the ARN and choosing the relevant demand order number for any pending demand, the system will automatically fill in the necessary details of DRC-03 and the designated demand order for payment adjustment.
As a result, the necessary entries will be automatically recorded in the taxpayer’s liability ledger to show the revised demands status after the modification is completed.
For detailed process, FAQs and grievance redressal; please refer to the GSTN Advisory dated 05/11/2024.