GST UPDATEZ ON 08-11-2024 by R.SRIVATSAN, IRS, NACIN, Chennai
The GSTN has launched a new form from 5th November 2024, GST DRC-03A, accessible on the GST portal.
This form allows taxpayers to adjust tax amounts already paid against specific GST demand orders.
For example, if you have a pending GST demand of ₹2,00,000/- and have already paid ₹50,000/- using the DRC-03 form, you can use the facilities in Form DRC-03A to adjust that ₹50,000/- against the demand, reducing your net tax liability to ₹1,50,000/-
The difficulties earlier was that if taxpayers did not utilize the designated payment methods to settle their dues, the GSTN system did not automatically apply those payments to outstanding tax demands.
However, the introduction of DRC-03A simplifies this process, enabling taxpayers to align their payments with their obligations more easily.
There are instances where some taxpayers have inadvertently paid amounts via
DRC-07/DRC-08/MOV-09/MOV-11/APL-04 through DRC-03 instead of using the ‘Payment towards demand’ feature on the GST portal. This has resulted in situations where payments have been made but the corresponding demands remain open in the electronic liability register.
The government has now addressed this with the new form, GST DRC-03A.
In order to access this facility,
Step:1
Log in to the GST portal, navigate to ‘User Services,’ and select ‘My Applications.’
Step:2
The GST DRC-03A form will be visible.
Step:3
Enter the DRC-03 form number and click ‘Search.’
Step:4
Once located, fill in the details linking with Demand Orders and other details.
Step:5
After submitting the DRC-03A form and the adjustment is completed, the updates will be automatically reflected in the taxpayer’s liability ledger.
Well…….
There are several taxpayers who may find the DRC-03A form particularly useful.
For example:
1.Taxpayers who have made partial payments on any GST demand and wish to adjust those against specific orders.
2.Taxpayers who have made payments on an ad-hoc basis without citing a demand order and now seek to align those payments with specific orders.
3.Taxpayers facing unfavorable tax orders who wish to appeal to the GST tribunal and avoid recovery actions from GST officials.
Since the GST appellate tribunal (GSTAT) yet to be established, taxpayers who have lost appeals against tax demand orders cannot pursue further appeals in the GST tribunal.
In such cases, GST officials may initiate recovery for any outstanding amounts.
To illustrate,
if a taxpayer faces a demand of ₹1,00,000
and files an appeal, they must pre-deposit 10% of that amount.
If the appeal fails, recovery proceedings may commence for the remaining ₹90,000/-.
Filing the DRC-03A can temporarily prevent such recoveries until GSTAT issues further directives.
One more progressive facility. ……….
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