Arjuna (Fictional Character): Krishna, What is FORM DRC-03?
Krishna (Fictional Character): Arjuna, There are two gateways through which taxpayer can make payment of GST.
One is when the taxpayer makes payment through PMT-06 while filing monthly return GSTR-3B and when the taxpayer has made any mistake of short payment of tax or excess ITC while filing his return then, DRC-03 may be filed for correcting the mistake.
Arjuna: Krishna, what are the cases where a taxpayer can file in DRC-03?
Krishna: Arjuna, following are the cases where a taxpayer can file in DRC-03:
1. Under Rule 42 and 43 of the CGST Rules 2017, Form DRC-03 can be used for reversal of ITC. As per said rules, the amount of ITC can be reversed by the registered person in FORM GSTR-3B or DRC-03
For eg. Suppose the total turnover of the Taxpayer is Rs. 10 lacs out of which Rs. 4 Lacs is Exempt and the taxpayer has claimed total ITC wrongly in 3B, then the reversal of the ITC in the ratio of turnover may be made through DRC-03.
2. Additional liability of tax as per Notice issued u/s 73, 74,75 and 76, interest u/s 52 or penalty u/s 122 to 127, Show cause notice or penalty for non compliance of E-way bill provisions can be paid through Form DRC-03.
3. Additional liability of tax, Reversal of ITC, interest or penalty disclosed in Annual return or Audit report can be paid through Form DRC-03.
Arjuna: Krishna, What are the details need to be given in Form DRC-03?
Krishna: Arjuna, following are the details need to be given in Form DRC-03:
1. Cause of Payment: It is necessary to select cause of payment from the following options:
- Voluntary
- SCN
- Annual return
- Reconciliation Statement
- Others
2. Payment date will be auto populated.
3. Section Number: Mention the Section under which the additional liability is to be paid through DRC-03.
4. Financial Year: Select the financial year for which additional liability is to be paid.
5. Overall tax period: Mention the correct tax period.
6. Act Type: The type of Act under which additional liability needs to pay such as, IGST, CGST, SGST or Cess shall be mentioned.
7. Place of Supply: It is compulsory to mention the place of supply after selecting the Act type as IGST.
Arjuna: Krishna, what would be the effects of DRC-03 on Electronic Cash and Credit ledger?
Krishna: Arjuna, DRC-03 is the challan which affect only Electronic Credit ledger of the taxpayer. Cash payment through DRC-03 makes Nil effect on Electronic cash ledger by debit and corresponding credit. The tax liability may be setoff through DRC-03 if credit is available in Electronic credit ledger.
Arjuna: Krishna, What is the importance of DRC-03 for Auditor?
Krishna: Arjuna, For the Auditor, DRC-03 is the conclusive evidence to conclude the audit in case of additional tax liability or ITC reversal. There is no section to fill the information relating to DRC-03 in Form GSTR 9 and 9C. Auditor may give the details relating DRC-03 in GSTR 9C i.e Audit Report in the Notes.
Arjuna: Krishna, what lesson should one learn from this?
Krishna: Arjuna, Form DRC-03 is similar as coin in Sholey Movie. It is useful only to pay the liability or reversal of input tax credit. It is helpful for government to collect the uncollected amount of revenue through DRC-03. Taxpayer may pay the additional liability through DRC-03 so that GSTR 3B for the following month won’t be disturbed. The two faces of DRC-03 coin is like sholey movie coin i.e payment of additional liability and reversal of input tax credit. Both giving the ultimate benefit to the government. There is no separate form other than 3B to claim ITC for taxpayers if missed.
Author Bio
Dear Sir, i have paid DRC- 03 interest for the month of Mar-2021 (Due F.Y. 2020-21) but i am selected F.Y. 2021-22 how can i change the year. please advise Sir i am waiting for your valuable Reply..
RCM to be paid and identified and paid in GST portal through DSRC 3 but unknowingly that amount has been partially used so do I have to the interest on diffrence amount or the whole amount
Dear Sir, I have paid IGST through DRC 03 but wrongly select different state in place of supply. Now GST officer is telling to pay again the same with proper place of supply. Kindly guide me how to get refund the previous wrongly payment. Thanks in advance.
Dear Sir,
I have paid IGST through DRC 03 but wrongly select different state in place of supply. Now GST officer is telling to pay again the same with proper place of supply.
Kindly guide me how to get refund the previous wrongly payment.
Thanks in advance.
Year 2021-22 written wrongly instead of yesr 2020-21 while filing drc-03.how can correct the error
Sir I have to pay interest in Dec 03 but worngly paid in head tax how can get back make corrections pls help urgently
Sirs I have to pay interest as per gst audit observations in DRC 03 but it had been paid in head of tax and I hav also filed DRC 03 how can make it correct or get back my refund. Kindly suggest
Sirs
We paid tax from credit ledger which has suppose to be paid from cash ledger (RCM liability) through DRC-03 ,
how to reclaim or refund of this tax to credit ledger,
Issue- we paid liable tax amount from cash ledger, we need take back tax amount which we paid from credit ledger , please any one guide me in this case
We paid tax from credit ledger which has suppose to be paid from cash ledger (RCM liability) through DRC-03 , how to reclaim or refund of this tax to credit ledger, Issue- we paid liable tax amount from cash ledger, we need take back tax amount which we paid from credit ledger , please any one guide me in this case
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Sir, I have reversed ITC on account C & S instead of I in DRC-03. What should I do?
Dear Sir,
i have paid DRC- 03 interest for the month of Mar-2021 (Due F.Y. 2020-21)
but i am selected F.Y. 2021-22
how can i change the year. please advise Sir
i am waiting for your valuable Reply..
Regard’s
Shankar
I need reply as I face same issue
Return related liabilities are outstanding. Please pay off that first. If error persists quote error number UC-UFAS1021 when you contact customer care for quick resolution
THANK YOU VERY MUCH FOR THE VALUABLE INFORMATION.
sir, I have reversed the cash balance through DRC-03. But later find i have done short amount.
shall I make another application for the left over amount.
Can we take the credit of Taxes paid under DRC 03?
IF ANNUAL RETURN LIABILITY 2017-18 PAID BY DRC 03 BY ADJUSTMENT OF ITC BY MISTAKE IF TAX OFFICER REJECTED, THEN THIS PAYMENT OF ITC RETURN BACK IN MY CREDIT LEDGER
IN DRC 3 WHAT WILL BE PLACE OF SUPPLY TO BE SELECTED FOR REVERSAL OF WRONG ITC ON IGST
I have erroneously paid IGST instead of CGST. How to get the refund
i had inserted figure in b-c instaed of b-b in f.y 17-18 . how can i corret the figure so that the buyer shall get the input….
Good interpretation.
Dear Sir, I have taken excess ITC in 17-18 and same is reversed in Sept-18, then I need to pay interest, since I have sufficient balance in Electronic Credit Ledger …. Please advise.