GST Appeal Pre-Deposit : Linking DRC-03 Payment thorugh DRC-03A
GST Advisory has been issued on GST Appeal Pre-Deposit related to Linking DRC-03 Payments through DRC-03A.Taxpayers sometimes make voluntary payments during investigation through Form GST DRC-03. Later, when filing an appeal against a demand order (e.g., DRC-07), the GST portal still asks them to pay the mandatory pre-deposit, even if they have already paid sufficient amount through DRC-03.
When a demand order is issued, a Demand ID is created in Part II of the Electronic Liability Register.Payments made using “Payment towards Demand” are automatically linked to this Demand ID.However, payments through DRC-03 are not automatically linked to the Demand ID, so they do not appear as adjusted against the demand.
While filing appeal, the GST system checks whether the required amount (Admitted amount + Pre-deposit) has already been paid against the Demand ID:
If the amount paid ≥ required amount → appeal can be filed without additional payment.
If the amount paid < required amount → portal requires payment of the balance.
Payments made through DRC-03 are not considered automatically while calculating the pre-deposit requirement because they are not linked with the demand.Taxpayers must file Form GST DRC-03A to link the earlier DRC-03 payment with the specific Demand ID.
Once linked:
- The payment appears in the Electronic Liability Register.
- The system recognizes it while filing appeal.
- No additional pre-deposit will be required if the amount already paid is sufficient.
GST Advisory on Pre-Deposit on Appeal
Steps to link the Demand ID with DRC 03
https://www.gst.gov.in/newsandupdates/read/652
