Payment on Voluntary Basis (Form GST FORM DRC-03 )
[ Also refer How to make Payment of Form GST FORM DRC 03 ? User Manual ]
1. What is the facility for Payment on Voluntary Basis?
Payment on Voluntary Basis is a facility given to tax payers to make payment u/s 73 or 74 of the CGST Act, 2017 within 30 days of issuance of Show Cause Notice (SCN). Payment could also be made by taxpayers before SCN is issued.
Section 73 of CGST Act 2017. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts.
Section 74 of CGST Act 2017. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.
2. When can I make voluntary payment?
You can make voluntary payment before issue of notice u/s 73 or 74 of the CGST Act, 2017 or within 30 days of issue of show cause notice (SCN) under the said sections. You cannot make voluntary payment after 30 days of issue of SCN.
3. What are the pre-conditions to make voluntary payment?
The pre-conditions to make voluntary payment are:
a. In case, voluntary payment is made before issue of SCN
- Show Cause Notice under determination of tax should not have been issued.
b. In case, voluntary payment is made after issue of SCN or statement
- 30 days’ time has not lapsed since SCN is issued.
4. Can I make partial payment against a liability declared voluntarily?
GST Portal does not allow for making partial payments against a liability declared voluntarily. The payment has to be made with reference to amount being demanded or already demanded in SCN.
GST DRC 03 available on GST Portal for making voluntary payments by a taxpayer.
GST Demands and Recovery : Free Study Material
Pingback: How to Reverse Incorrect Input Tax Credit ? - Tax Heal
Pingback: TaxHeal - GST and Income Tax Complete Guide Portal