DRC 03 PAAYMENT, Goods and Services Tax - GST

[SANTOSH PATIL]

During Audit u/s 65, it was observed there was short payment of 9 lakh for the period 17-18, 18-19, 19-20, 20-21. Auditor has sent ADT 02 with their observation of short payment of 9 lakh. Ten lakh ITC is available in credit ledger as on date, can we pay demand raised under audit observation by DRC 03 utilising credit balance available in portal.

Posts / Replies

[Alkesh Jani]

Shri

Please refer Sl.No.06, 07 and 08 of Circular No.172/2022 dated 6th July, 2022. Also refer Sl.No.07 column No. 10 of DRC-03.

Thanks

[Padmanathan Kollengode]

If the short payment is on account of RCM, ITC cannot be utilized. Output tax (other than RCM), can be paid using ITC.