[Opinion] Form GST DRC-03A | A Saga of Deeming Payments

Deepak Jain – [2024] 164 taxmann.com 373 (Article)

There were many instances where the Taxpayers had paid GST against demand order issued by Jurisdictional Proper Officer through Form GST DRC-03 without knowing that Form GST DRC-03 is only for voluntary payment of taxes. Tax liability created out of any order shall be paid by debiting the Electronic Liability Ledger only. As it happened, such payments made through Form GST DRC-03 were not appropriated against demand liability created out of the order – which was credited in their Electronic Liability Ledger.

Thus taxpayers were left with no option, but to approach the GST authorities for appropriating the payment made through Form GST DRC-03 against the liability created in the Electronic Liability Ledger. However such appropriation of payment through Form GST DRC-03 against the demand liability was not possible as per GST law. The issue was brought to the notice of GST Council, who resolved this issue by introducing Form GST DRC-03A.

The Department stated that payment made in Form GST DRC-03, for which the Department has not issued an order in Form GST DRC-05, can be appropriated against the demand liability through filing of Form GST DRC-03A.

The steps of filing of Form GST DRC-03A are as follows –

1. Open Form GST DRC-03A
2. Provide the ARN of Form GST DRC-03 through which the payment was made
3. The details of Form GST DRC-03 would be auto-populated in the Form
4. Provide the reference no. of the order of demand against which payment was intended to be made (including rectification/appeal order)
5. The details of demand would be auto-populated in the Form
6. Verify the undertaking and verification section of the Form
7. File the Form with DSC or EVC.

Click Here To Read The Full Article