Answer

1. F

   Facts

   For periods up to FY 2023-24 in non-fraud cases, paying tax with interest before a notice and informing the officer means no penalty. Use DRC-03 with the Voluntary cause.

2. P

   Provisions and law

   • 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)
   • 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 50, CGST Act 2017Interest at 18 percent a year on tax paid late
3. A

   Analysis

   Sec 73(5) gives this option, and Sec 73(6) says no notice is issued for the amount paid. Interest under Sec 50 is still due. Example: ₹80,000 tax short paid for FY 2022-23, paid in October 2026; interest at 18 percent for about 3.5 years is roughly ₹50,000. Paying now avoids a penalty of at least 10 percent or ₹10,000 that a later order could add.

4. C

   Conclusion

   1. 1Confirm the period and amount of short payment.
   2. 2Calculate interest from the original due date.
   3. 3File DRC-03 under Voluntary with Sec 73(5).
   4. 4Pay interest in cash.
   5. 5Keep the ARN and DRC-04.

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