Audit observation payment via DRC 03

[SANTOSH PATIL]

Respected Sirs,

In our GST audit U/s 65 observation was made that interest on delay in filing GSTR 3B was not paid along with returns from July 2017 to March 2020. Now they have sent me letter ADT 02 stating that it is observed in audit that interest amounting to Rs. 1 lakh has not been paid from July 2017 to March 20. Kindly pay above interest. Now when i contected proper officer he said to pay through DRC 03 in single challen. DRC 03 is accepting year wise interest. Office is saying pay in 2019-20 and under reason mention period July 2017 to March 2020. Is it correct procedure, your guidance will be highly appreciated

AI Summary

Experts Advise Paying Interest for Delayed GSTR-3B Filings Year-Wise; Proper Notice Required for Interest Demands In a discussion forum about GST audit observations, a user sought advice on paying interest for delayed GSTR-3B filings from July 2017 to March 2020. An audit letter indicated Rs. 1 lakh in unpaid interest, suggesting payment via DRC-03. Experts advised paying interest year-wise rather than in a single challan, as the system requires year-specific payments for accurate record-keeping and verification. One user noted that interest is due on late tax payments, not late filings, and mentioned a court decision requiring a proper notice for interest demands. The user thanked the experts for their guidance.