Unsettled GST tax demand after payment? Use new form to adjust tax amount
The Goods and Services Tax Network (GSTN) has introduced a new form, GST DRC-03A, to allow taxpayers to offset tax demand amounts that have already been paid in response to a specific GST demand order.
“The new Form DRC-03A benefits taxpayers by ensuring their payments are accurately recorded against specific demands raised by the GST authorities. Previously, many taxpayers used Form DRC-03 for these payments, which didn’t allow them to enter the Demand Order Number, causing the demand to still show as unpaid in the Electronic Liability Register. The DRC-03A form includes a field for the Demand Order Number, allowing payments to be correctly linked to the relevant demand and resolving this issue,” said Ankit Jain, partner, Ved Jain & Associates (a Chartered Accountancy Firm).
For example, if you have an outstanding GST demand order of Rs 500 and you've already paid Rs 100 through the DRC-03 form, you can use the DRC-03A form to apply this Rs 100 payment toward the demand order. This will reduce your remaining tax liability to Rs 400.
