Answer

1. F

   Facts

   From FY 2024-25, demands fall under Sec 74A. For non-fraud cases, paying tax and interest before a notice means no notice and no penalty.

2. P

   Provisions and law

   • Sec 74A(8), CGST Act 2017From FY 2024-25, non-fraud cases: pay tax and interest before notice, no penalty; or within 60 days of notice, no penalty
   • 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
3. A

   Analysis

   Sec 74A replaced Sec 73 and 74 for FY 2024-25 onwards. The DRC-03 form includes Sec 74A(8) and 74A(9) in the section list. Example: ₹45,000 short paid for FY 2025-26; pay tax and interest through DRC-03 choosing Sec 74A(8). Check the exact sub-section on the portal and in the law before filing.

4. C

   Conclusion

   1. 1Check that the period is FY 2024-25 or later.
   2. 2Calculate tax and interest.
   3. 3File DRC-03 with the Sec 74A section shown on the portal.
   4. 4Pay interest in cash.
   5. 5Keep the acknowledgement.

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