This is a voluntary payment for Excess interest and penalty or in response to the show cause notice (SCN) raised by the Department.
This notice comes from the article of rule 142(2) & 142 (3) of Central Goods and Services Tax Rules, 2017. Basically this explains the Procedure for intimation of voluntary payment- FORM GST DRC 03.
Payment on Voluntary Basis is a facility given to the Tax payers to make payment under 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.
We 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).
There is no option to make voluntary payment after 30 days of the issue of SCN.
In this process we have pre-conditions to make voluntary payment:
- If the voluntary payment is made before issue of SCN
- If the voluntary payment is made after issue of SCN or statement
- 30 day’s time has not lapsed since SCN is issued.
GST Portal does not allow for making partial payments against in a SCN.
Taxpayer can use this form and save within 15 days from the staring period. When they need any changes, they can visit the service pages directly.
They can find it Under service page -> User services -> My saved application.
This is included in the filing forms and types below:
- GSTR-3B Late filing
- GSTR-1 Late liability paid
- Annual Returns pending Interest
- GSTIN Revocation Form
- Penalty for Unpaid Liability
Process to Apply Voluntary Payment GST DRC-03:
As per the instructions is GST portal, below mentioned steps must be followed:
Step 1: Login to GST Portal -> Select Services -> User Services -> My Applications
Step 2: Choose “Intimation of Voluntary Payment- DRC 03” available in the drop-down list of “Application Type”.
Then Click on “New Application”.
Step 3: Choose either of the three options under “Cause of Payment” (Voluntary, SCN, and Others).
If Voluntary Payment is selected -> Select the relevant section and the Financial Year
Step 4: If SCN is selected -> Select the relevant section and Financial Year; enter the SCN Ref No.
Step 5: If the taxpayer selects Others from the options -> Provide the Financial Year in “Others” section.
Step 6: Once the details are entered, Select Period and Act (visible on the bottom of the screen). -> Proceed to Pay