DRC 03 paid in excess than required, Goods and Services Tax - GST

[POOJA AGARWAL]

Dear Experts,

For claiming benefit under GST amnesty scheme the tax has to be paid through DRC 03 and has to be mapped with the order by filing DRC 03A. By mistake, the amount paid by DRC 03 is higher than required, is there any option to revise DRC 03 and transfer the excess amount back to the electronic cash ledger? or any other remedy for such situation?

Posts / Replies

[Sadanand Bulbule]

Assuming that you have paid the amount of tax by way of cash higher than what actually was due to avail the benefit amnesty scheme, there is no need to revise DRC-03. The 'common portal' would automatically capture only the precise amount tax demanded in FORM GST-07.The excess amount would come back in the  electronic cash ledger.

The similar mechanism applies even if the amount of tax is adjusted by way of available ITC for the purpose of amnesty scheme.

[KASTURI SETHI]

I support the views of Sh.Sadanand Bulbule, Sir.

[Shilpi Jain]

I am not sure whether this will get re-credited to your cash ledger automatically. Though the balance in DRC-03 can be considered to have been used for some other tax payments and make an intimation to the department in this regard. Else if its a significant amount, apply for refund.

[Sadanand Bulbule]

Common Portal is customised that way. Finally it is the choice of the taxpayer. 

[POOJA AGARWAL]

Have filed the DRC 03A and SPL 02. The excess amount is not returned back in cash ledger yet showing in DRC 03 balance. Will try to file RFD 01 or adjust any other tax liability.

Thanks

[Sharad Singh]

But as for the advisory issued by GSTN it was proposed that you can pay by " payment towards demand as well" . What makes it mandatory to pay by DRC 03 and there are so many technical issues regarding DRC 03 A. Payment can be made by debiting the ledger in payy towards demand .

[Sharad Singh]

As per circular 238, 15 October,2024 

"Payment of tax:  3.2.1 With respect to a notice or statement referred to in clause (a) of sub-section (1) of Section 128A, i.e., a notice or statement that is yet to be adjudicated, the payment towards the tax demanded in the said notice shall be made by the taxpayer through FORM GST DRC-03. 3.2.2 With respect to an order referred to in clause (b) and clause (c) of sub-section (1) of Section 128A, the payment towards such tax demanded shall be made by the taxpayer, only by the making the payment against the debit entry created in the Part II of the Electronic Liability Register (ELR) by the demand order.  In this regard, the procedure mentioned in para 4 of Circular No. 224/18/2024 -GST dated 11th July 2024 may be referred to. However, in cases where the payment towards tax demanded in the demand order has already been made through FORM GST DRC-03, the procedure prescribed in rule 142(2B) may be followed. In such cases, the taxpayer shall be required to file an application in FORM GST DRC-03A as prescribed in the said rule, in order to adjust the amount already paid vide the FORM GST DRC-03, towards the demand created in the ELR-Part II, before filing the application for waiver under Section 128A in FORM GST SPL-02. For the purposes of determining the date of payment of full amount of tax, the date on which the amount has been paid through FORM GST DRC-03 may be considered and not the date on which the said amount has been adjusted using FORM GST DRC-03A.  "

[Sharad Singh]

Many taxpayers have filed SPL 02 without DRC 03 A but they have made payment by DRC 03 . Will it will be considered payment even though the DRC 03 A was not done.what will happen to application.once SPL 02 is filed then I can't make DRC 03