GST
Part payments against a show cause notice
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Facts
Yes. You can pay part or all of the SCN amount, and file more than one DRC-03 until the order or closure.
Provisions and law
- Rule 142(2) and (3), CGST Rules 2017Payment before or after a notice is intimated in DRC-03; the officer acknowledges it in DRC-04
- Sec 73(8), CGST Act 2017Pay tax and interest within 30 days of the notice; no penalty and proceedings close
Analysis
The DRC-03 manual says multiple DRC-03s can be filed against an SCN until the DRC-07 order, DRC-05 conclusion or case closure. Paying the part you accept reduces interest. Example: SCN for ₹5 lakh on three issues; you accept one issue worth ₹1.2 lakh and pay it now, and contest the rest in your reply.
Conclusion
- Decide which part you accept.
- File DRC-03 against the SCN for that part.
- Mention the payment in your DRC-06 reply.
- Contest the rest on merits.
A Savvy can do this for you
Voluntary payment, DRC-03, and linking to demand, DRC-03A
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