Answer

1. F

   Facts

   Any payment should be voluntary and made after you understand the issue. Payments made under pressure during a search are hard to recover later.

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 67, CGST Act 2017Power of inspection, search and seizure
3. A

   Analysis

   DRC-03 is a voluntary payment form. CBIC has told officers not to force recovery during search, and the kit's problem bank notes taxpayers who paid under pressure later seeking refunds. Example: officers ask for ₹10 lakh on the spot; ask for the issues in writing, take advice, and pay what you accept later through DRC-03 under Investigation. If you do pay, note in writing that it was under protest.

4. C

   Conclusion

   1. 1Stay calm and cooperate with the search.
   2. 2Ask for the issues in writing.
   3. 3Do not sign blank or pre-filled DRC-03 forms.
   4. 4Take advice before paying.
   5. 5If you pay, record that it was under protest.

Payment during a search is often treated as admission later, so be careful.

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