Answer

1. F

   Facts

   Choose Audit as the cause and enter the ADT-01 or ADT-03 reference. Pay tax and interest, and any penalty that applies.

2. P

   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(5), CGST Act 2017Pay tax and interest before a notice and inform the officer; no penalty in non-fraud cases (periods up to FY 2023-24)
3. A

   Analysis

   The DRC-03 manual says the Audit cause needs an ADT-01 or ADT-03 reference number. Paying accepted audit points before a notice keeps penalty at nil for non-fraud cases. Example: audit for FY 2022-23 finds ₹90,000 of RCM unpaid; pay with interest through DRC-03 citing the audit reference, then give the ARN to the audit team.

4. C

   Conclusion

   1. 1Get the audit reference number.
   2. 2Agree the accepted amounts in writing.
   3. 3File DRC-03 under Audit with the reference.
   4. 4Send the ARN to the audit officer.

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