Answer

1. F

   Facts

   Pay the tax and interest (and any penalty applicable) through DRC-03 and inform the officer in Part B of DRC-01A. For non-fraud cases up to FY 2023-24, paying before the notice under Sec 73(5) means no penalty.

2. P

   Provisions and law

   • Sec 73(5), CGST Act 2017A person may pay tax with interest before a Sec 73 notice is issued and inform the officer; no penalty is then payable.
   • Rule 142(2), CGST Rules 2017A person paying tax, interest and penalty voluntarily or after an intimation informs the officer in DRC-03, and an acknowledgement issues in DRC-04.
   • Rule 142(1A), CGST Rules 2017Before a show cause notice, the officer may communicate the tax, interest and penalty ascertained in Part A of DRC-01A; the person may pay or give submissions in Part B.
3. A

   Analysis

   Suppose the intimation shows short payment of ₹60,000 for FY 2022-23 under Sec 73. Pay ₹60,000 plus 18 percent interest from the due dates through DRC-03, quoting the intimation, and then file Part B. You receive an acknowledgement in DRC-04. The officer should then not issue a notice for that amount.

4. C

   Conclusion

   1. 1Recompute tax and interest to confirm the figure.
   2. 2File DRC-03 choosing the intimation as cause and pay.
   3. 3Note the DRC-03 ARN.
   4. 4Fill Part B of DRC-01A with the payment details.
   5. 5Keep DRC-04 and the reply acknowledgement.

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