How to file Form GST DRC-20

FAQs on Applying for Deferred Payment or Payment in Instalments (FORM GST DRC – 20)

Q.1 What is the purpose of FORM GST DRC – 20?

Ans. FORM GST DRC – 20 is an application form that can be filed by any taxpayer to apply for one of the following two options available to him in case he cannot pay the entire amount due under the GST Act in one go:

• Deferred payment: when dues are deferred for payment at later stage
• Payment in instalments: when due is paid in installments over a period of time

Q.2 When can I file FORM GST DRC – 20?

Ans.  You can file FORM GST DRC – 20 when a demand is pending for recovery under GST Act against you and you wish to apply for deferred payment or payment in instalments of amount due under the GST Act.

You are required to have valid login credentials to file this application.

Q.3 Can I file FORM GST DRC – 20 in respect of amount against return related demands?

Ans. No, application for deferred payment using FORM GST DRC – 20 cannot be filed against return related demands. You can file application for deferred payment using FORM GST DRC – 20 for other than return related demands, which are posted in Electronic Liability Register Part-B.

Q.4 How many applications for deferred/payment in Instalments can I file?

Ans.  Only one “Application for Payment in Instalments” can be submitted against a particular Demand ID.

Q.5 In FORM GST DRC – 20, I need to enter the number of months for my instalments. Is there any limitation on the number of months?

Ans.  Yes. Maximum number of instalments allowed is 24.

Q.6 How is the interest calculated if I select the option of “Monthly Instalments” in FORM GST DRC – 20?

Ans.  Interest is calculated considering the following points:

• Interest will be applicable only on the tax/cess amount applied for instalment/deferment.
• No interest will be payable on the Interest, Penalty and any other amount in the Demand ID.
• Interest will not be calculated by system as part of application for deferred payment/payment in instalment. Instead, if any interest needs to be recovered from taxpayer as part of monthly instalment then tax officer will create separate demand ID which will be paid by taxpayer.

Q.7 I have filed FORM GST DRC – 20. What actions will take place on the GST Portal now?

Ans. Once you have filed FORM GST DRC – 20, following actions will take place on the GST Portal:

• GST Portal will generate and display Application Reference Number (ARN) receipt with an option to”Save and Print” the same.
• SMS and Email will be sent to you intimating ARN and successful filing of the Form.
• Your application for payment in Installments shall be submitted to the Commissioner/proper officer of concerned jurisdictional authority and will become a pending item in his/her queue of work-items. The Officer will adjudicate on the application and either Accept or Reject or Accept with modification your request. You can access the generated ARN and view the filed application from the following navigation: Dashboard >Services > User Services > My Applications > Case Details > APPLICATIONS 
• Demand ID in DCR, in respect of which you have filed this application, will be flagged to show that such an application is filed against the Demand ID.

Q.8 How will I come to know that the officer has processed my application for deferred/payment in Instalments?

Ans. Once the officer has processed an application for deferred/payment in Instalments, following actions will take place on the GST Portal:

• Approval or Rejection or Modification order will be generated and intimation of issue of order shall be sent via email and SMS to taxpayer.
• Status of ARN shall get updated to ‘Rejected’ in case of rejection, “Approved” in case of acceptance and “Application approved with modification” in case of modification.
• Order will be available at the dashboard of taxpayer for view, print and download: Dashboard >Services > User Services > My Applications > Case Details > ORDERS 
• Status of Recovery ID remains the same in case of rejection. In case of acceptance or modification, the status of recovery ID shall change to “Deferred Payment/Payment by Instalments”. If there is a default in the payment of monthly instalments, the status of recovery ID shall change from Deferred Payment/Payment by Instalments to Recoverable

Q.9 What will happen if I am unable to make the required payment, after the acceptance of my application for payment in Instalments?

Ans.  In case there is any default in payment of any one installment on its due date, the whole outstanding balance payable on such date will become due and payable forthwith, and will be liable for recovery without any further notice to the Taxpayer.

Q.10 During the processing of applications for deferred payment or payment in instalments, what all and when the Status changes take place in an ARN/Case ID on the GST Portal?

Ans.  On the GST Portal, during the processing of applications for deferred payment or payment in instalments, the ARN/Case ID may undergo following Status changes:

1. Pending for Processing:When a taxpayer files the application and it is under work item of tax officer

2. Approved:When tax officer approves the application of taxpayer for deferred payment or payment in instalments

3. Application approved with modification:When tax officer approves the application with certain modifications

4. Rejected:When tax officer rejects the application of taxpayer for deferred payment or payment in instalments

Q.11 What is an Instalment Calendar?

Ans.  Instalment Calendar displays the taxpayer’s instalment details to be paid by him along with status of payments.

Q.12 From where I can view the Instalment Calendar?

Ans.  Navigate to Services > Payments > Instalment Calendar to view the Instalment Calendar.

B. Manual (FO) > Filing Form GST DRC – 20 (Application for Deferred Payment or Payment in Instalments)

How can I file an application for deferred payment or payment in instalments of amount due under the GST Act and follow up on the subsequent proceedings?

To file an application for deferred payment or payment in instalments of amount due under the GST Act and follow up on the subsequent proceedings, perform following steps:

A. File an Application for deferred payment or payment in instalments

B. Open the Application’s Case Details screen by searching for your filed Application in My Applications page or from View Additional Notices/Orders page

C. Take action using APPLICATIONS tab of Case Details screen: View your Filed Application

D. Take action using ORDERS tab of Case Details screen: View the Order issued on that Application

A. File an Application for Deferred Payment or Payment in Instalments

To file an Application for Rectification of Order, perform following steps:

1. Access the www.gst.gov.in URL. The GST Home page is displayed.

2. Login to the portal with valid credentials.

3. Dashboard page is displayed. Click Dashboard > Services > User Services > My Applications

4. My Applications page is displayed. In the Application Type field, select “Application for Deferred Payment/Payment in Instalments” and then click the NEW APPLICATION button.

5. New Application page is displayed. Enter details in the displayed fields as mentioned in the following steps.

Note: Alternatively, you can access this application form from the following navigation: Dashboard > Services > Payments > Application for Deferred Payment/Payment in Instalments

5a. In the Demand ID field, enter the demand id and click the SEARCH button. Details of the outstanding demand gets displayed below the SEARCH field. Also, Tax Period fields below get auto-populated.

5b. In Type of Payment field, choose one of the two radio buttons against Monthly Instalments or Deferred Payment options.

5b. i. If you select the radio button against the Monthly Instalments option, its field appears. Enter the number of months and click the CALCULATE button. This will auto-calculate and display the Expected Monthly Instalment table. Also, note the message below the expected monthly instalment table that mentions the per annum interest rate which will be charged on the Tax/Cess amount.

Note: Maximum no of Installment allowed is 24.

5b. ii. If you select the radio buttons against the Deferred Payment option, its field appears. Select your preferred Due date of payment from the calendar.

5c. In the Enter Document Description field, enter brief description of the document, if any, you wish to upload along with this application. Then, click Choose File to upload those document(s). This is not a mandatory field.

5d. In the Reasons field, if required, enter details about why you are filing this application. This is also not a mandatory field.

5e. Enter Verification details. The Date field is auto-populated based on the current system date. Select the declaration check-box and the name of the authorized signatory. Based on your selection, the field Designation/Status displayed below gets auto-populated. Enter the name of the place from where you are filing this application.

5e. Click PREVIEW to download and review your application. Once you are satisfied, click SUBMIT.

6. Submit Application page is displayed. Click ISSUE WITH DSC or ISSUE WITH EVC.

7. Provisional Acknowledgement page is displayed. You will also receive an SMS and email intimating you of the generated ARN and successful filing of the application. To download the filed application, click the DOWNLOAD button or click Go To My Applications link go back to My Applications page.

Note: Once the application is filed, Status of the application gets updated to “Pending for Processing”.

8. Additionally, following actions will take place on the GST Portal:

• Your application for payment in Installments shall be submitted to the Commissioner of concerned jurisdictional authority and will become a pending item in his/her queue of work-items. The Officer will adjudicate on the application and either Approve or Reject your request. You can access the generated ARN and view the filed application from the following navigation: Dashboard > Services > User Services > My Applications > Case Details > APPLICATIONS
• Demand ID in DCR, in respect of which you have filed this application, will be flagged to show that such an application is filed against the Demand ID.

C. Take action using APPLICATIONS tab of Case Details screen: View your Filed Application

To view Application Details based on which this Case was created, perform following steps:

1. On the Case Details page of that particular application, select the APPLICATIONS tab, if it is not selected by default. This tab provides you an option to view the filed application, along with its supporting documents in PDF mode. Click BACK to go back to My Applications page.

Click BACK to go back to My Applications page.

2. Click the documents in the “Action” column to download and view them.

D. Take action using ORDERS tab of Case Details screen: View the Order Issued on that Application

To view and download the order issued against your application, perform following steps:

1. On the Case Details page of that particular taxpayer, click the ORDERS tab. This tab provides you an option to view the issued order, with all its attached documents, in PDF mode.

Click BACK to go back to My Applications page.

2. Click the View hyperlink in the “Action” column to download and view the issued Order.

Note 1:

• Status of this ARN/Case is “Rejected” as the Officer has rejected this application request.
• Status of ARN shall get updated to “Approved” in case of acceptance and “Application approved with modification” in case of modification.

Note 2:

Once the officer has processed an application for deferred/payment in Instalments, following actions will take place on the GST Portal:

• Approval or Rejection or Modification order will be generated and intimation of issue of order shall be sent via email and SMS to taxpayer.
• Status of ARN shall get updated to ‘Rejected’ in case of rejection, “Approved” in case of acceptance and “Application approved with modification” in case of modification.
• Order will be available at the dashboard of taxpayer for view, print and download: Dashboard > Services > User Services > My Applications > Case Details > ORDERS
• Status of Recovery ID remains the same in case of rejection. In case of acceptance or modification, the status of recovery ID shall change to “Deferred Payment/Payment by Instalments”. If there is a default in the payment of monthly instalments, the status of recovery ID shall change from Deferred Payment/Payment by Instalments to Recoverable.

Read about deductions under section 80C here

(Republished with amendments)

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Source- gst.gov.in