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

Interest on late tax deposit should be paid year wise via DRC-03 to align with portal and audit records.
Interest identified in ADT-02 should be paid through Form DRC-03 year wise because the portal requires year selection and year wise payment aids reconciliation for issuance of Form DRC-04. If the system disallows prior years, include year wise details in remarks with a reference letter. Note that interest is payable for late deposit of tax (not merely late filing) and may depend on electronic ledger balances; a departmental interest demand may also require a proper show cause notice.