Answer

GST

Linking a DRC-03 payment to a show cause notice

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    Pay through DRC-03 and choose the cause of payment as against a show cause notice, giving its reference number. This links the payment to the case. If an order is passed later, DRC-03A can link earlier payments to the demand.

  2. Provisions and law

    • Rule 142(2B), CGST Rules 2017DRC-03A to link a DRC-03 payment to a demand order
    • Rule 142(3), CGST Rules 2017DRC-05 intimation that proceedings are concluded after full payment
    • Sec 73(8), CGST Act 2017No penalty if tax and interest are paid within 30 days of the notice
  3. Analysis

    Paying through a DRC-03 with the wrong cause, such as voluntary, is a common reason the officer later demands the same tax again. Choose the SCN cause and reference, and mention the payment in your DRC-06 reply.

  4. Conclusion

    1. Open Services > User Services > My Applications > Intimation of voluntary payment (DRC-03)
    2. Choose cause of payment as show cause notice and enter the reference
    3. Pay from the ledgers
    4. Mention the ARN in your DRC-06 reply

A Savvy can do this for you

Show cause notice under Sec 73, 74 or 74A and DRC-06 reply

Quote

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask