Additional GST via Form GST DRC-03

Monthly Archives: December 2021

Additional GST via Form GST DRC-03


What is Form GST DRC-03?

FORM GST DRC-03 is a digital intimation of payment made by the taxpayer voluntarily or made against show cause notice issued by the department or in adherence to section 142(2) and 142(3) of CGST Rules 2017. The tax officer is expected to verify the payment received from the taxpayer and if the amount paid falls short of the amount actually payable, they shall proceed to issue a notice in respect of such amount which falls short of. Accordingly, verification of DRC 03 payment is built in this module. Eligible individuals can view & download the Form GST DRC 03 in PDF format.

When a taxpayer is expected to make a payment through Form DRC-03? While making voluntary payment of outstanding liabilities u/s 73 and 74 of the CGST Act. A taxpayer can himself ascertain the tax before issuance of SCN or within 30 days of SCN determination to avoid the struggle of demand and recovery provisions. You cannot make voluntary payment after 30 days of issue of SCN. What are the pre-conditions to make voluntary payment? The pre-conditions to make voluntary payment are: Make voluntary payment before the issue of SCN or If voluntary payment is made after the issue of SCN or statement then 30 days’ time limit should not lapse since SCN is issued. What is the procedure to file DRC-03? There are mainly

Big Problem of “Vanishing” Vendors ( leading to Reversal of GST ITC with Intt @24% and Penalty )

Dear Members and Friends,

There is a Problem. Hence this Post.

This is regarding the recently rising Problem of “Vanishing” Vendors, leading to big losses in GST. And this problem is rising .

The information below is True and is with personal experience by us.

And this message is to help other LMAI members avoid this problem.

Vanishing Companies Includes (a) Those whose GST Registration is Struck off by the GST Dept (b) Those who are registered but are not filing GST Returns / filing them improperly

Every month, we are coming across cases of GST Audit by Department, and their insistence of GST-2A matching with your GST-3B.
If the difference is substantial, they ask for Detailed GSTR2A matching…. Even if this is not legally compulsory, Even if some High Courts have come in support of the Manufacturer/Trader, that he is not responsible for the mistake of non filing by the Vendor… but yet matter is being hotly debated.

The Above “addition” leads to Reversal of GST ITC with Intt @24% and about 15% Penalty

Points to Remember

Do a Regular Check of which Vendor is “OK” VALID and who is “Struck off” / “Cancelled” .. Every month / Every 3 months

Purchase Dept to listen to Taxation Department / Accounting Department / BPO .. and followup with Vendors for GSTR2A in-congruencies ….Every month / Every week

Tip of the day
In case you are facing problems in doing this, Finsys can help you do this, Advise is Free for LMAI members and in case you want us to do this on regular basis, then, Professional Support is also available with our 70+ staff including 12 Qualified CA’s and 2 Qualified CS and 20+ Software Engineers ,who can make your life safer from this GST Risk.



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