GST DRC-03

GST DRC-03

It a payment form in which a taxpayer can pay the tax by increasing its liability of his own accord or in response to the Show Cause Notice (SCN) raised by the department.

When a taxpayer make a payment in DRC-03?

Form DRC-03 is filed for making of his accord payment of outstanding liabilities u/s 73 and u/s 74 of CGST Act. A taxpayer can self make out the tax before issuance of SCN or within 30 days of issuance of notice.

Causes of Payment of Tax , Interest and Penalty

1. Under Section 73
2. Under Section 74

Against Bonafide Mistake (Under Section 73): In this cases where there is a non-payment or under payment of tax without any intention of fraud.

• Voluntary payment before SCN- No Penalty: Under section 73(5), payment of tax and interest before issuance of SCN is No Penalty.
• Voluntary Payment within 30 days after SCN - No Penalty: Under section 73(8), payment of tax and interest within 30 days of SCN is No Penalty.
• Payment after order is passed- Penalty 10% or Rs.10K whichever is higher: Under section 73(9), payment of tax and interest after issue of Order is 10% of Tax evaded or Rs.10K whichever is higher.

Against Willful Mistake  or Fraud (Under Section 74):In this cases where there is a non-payment or under payment of tax with intension or invocation of fraud.

• Voluntary Payment before service of SCN-Penalty 15% of tax: Under section 74(5), payment of tax and interest before issuance of SCN is 15% of evaded Tax.
• Voluntary payment within 30 days of SCN- Penalty 25% of Tax: Under section 74(8), payment of tax and interest within 30 days of SCN is 25% of evaded Tax.
• Payment within 30 days after order is passed- Penalty 50% of Tax: Under section 74(11), payment of tax and interest after issue of Order is 50% of evaded Tax.

Process to apply Form DRC-03

• After login, go to and select Services->User Services->My Applications.
• In “Application Type*”, select “Intimation of Voluntary Payment- DRC 03” from drop-down and click on “NEW APPLICATION”.
• The following page will appear.
• Here select “Cause of Payment*” from (a) Voluntary, (b) SCN and (c) Others. If Payment is made, then provide PRN.
• Illustration 1: Voluntary-> Select appropriate section and FY;
• Ilustration2: SCN->Select appropriate section and FY; provide SCN Reference No. and date (either system generated or manual).
• Illustration 3: Others->Provide appropriate section and FY;
• After filling details accordingly, go to the bottom of the screen to select period and Act and then proceed to pay.