GST Portal Online functionality of DRC 7
Online functionality of DRC-07 module made available in the CBEC-GST portal for
officers . GST DRC 7 is Summary of the order .
Bangalore Zonal Unit of Directorate of Systems and Data Management has released of a module for preparation and uploading of digital summary of a demand order in GST (FORM GST DRC-07) to enable taxpayer for payment of the tax/interest/penalty.
Sub-Rule (5) of Rule 142, of CGST Rules, mandates uploading of the summary of the order issued under section 73 (9), section 74 (9), section 76 (3), section 125, section 129 or section 130 of the CGST Act, electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax. The facility of generation and uploading of FORM GST DRC-07 electronically has been provided and the departmental officers can henceforth make use of the same. This functionality allows tax officer to create a liability in Liability ledger part II (other than return related liability) and allows taxpayer to set off the liability using cash/credit ledger.
An overview of the DRC-07 functionality is as under:
A demand order under GST is essential before creation of DRC 07. Hence it is imperative that a copy of each and every demand order issued manually under GST Act(s) is given to the Range Officer. Copy of the Order-in-Original based on which, such DRC 07 is created shall be scanned and uploaded in the system for reference. The module allows flexibility across AC/DC of Division/ Range Superintendent/Range Inspector to create DRC-07 and AC/DC of Division/ Range Superintendent to approve DRC-07.
To ensure accuracy in data entry, there is a two level authentication. DRC-07 can be viewed by all the jurisdictional officers. The data entry of fields which are essential for DRC-07 and Liability Register Part II have been made mandatory. However, it is advisable to enter all other fields also which will be useful in generation of MIS reports.
The functionality allows data entry for the period from July 2017 up to the month of Order date (i.e., demand can be raised for more than one financial year in a single DRC-07)
If the Order contains both CGST and SGST or UTGST, Tax officer has to add a new demand row for each Act and applicable Rate of Tax has be to filled against each Act. The system allows entry of IGST and CESS for interstate supply/SEZ supply, CGST, SGST, IGST and CESS for intrastate/SEZ supply and CGST, UTGST, IGST and CESS for intra-union territory supply. In Demand Details tab, interest portion should be calculated as on the Order issued date. It is preferable to enter date of communication of the order as the Order issue date. There is no rectification process to amend the wrongly raised DRC-07. So it is requested to fill the mandatory fields with utmost care. One field out of HSN/SAC is mandatory, however both the fields can be entered for demands including goods and services
Officers are required to attach copy of demand order along with every DRC-07. The process of attaching document from AIO is available in the user manual. Saved and not submitted applications will be available in the Draft DRC-07 menu item.
All the Approved DRC-07 are listed separately and once Demand ID is created from GSTN, the Approved DRC-07 list is amended incorporating Demand ID. There is an export to excel utility available for the Approved DRC-07 list. In case the Demand ID is not created even after 24 hours, it is advisable to check the Error DRC-07 tab in the task bar for errors. Once Demand ID is created, a liability is created in the Liability register part II (Other than returns related liability) which will be visible to the tax payer as well as the tax officer. This liability allows the tax payer to make payment of duty, interest and penalty utilizing the balance in his electronic cash and credit ledger. This payment updates the Liability Register Part II and the same can be viewed by tax officer.
Personal penalty is not part of DRC-07 form and doesn’t create a liability in the Liability Register Pt II as personal penalty is not levied on a particular GSTIN. Separate action to be taken for recovery of personal penalties.
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