Payment under DRC-03 on account of ASMT due to debit Note

[MANOHAR KALBURGI]

Dear Sir,

We have received an ASMT-10 for collecting 12% GST instead of 18% GST, now we are willing to discharge the demand raised in ASMT-10. Question arised before us are;

1. Whether payment to be made thru DRC-03 u/s 73 ? or

2. Whether payment to made thru normal monthly GSTR-3B (means incorporate the debit note in GSTR-1 and filing the GSTR-3B later on) If this is done even buyer will get the ITC for debit note.

Please suggest us the best correct option for making the payment.

Thank you in advance

AI Summary

GST short payment classification under Section 73 or Section 74 determines input tax credit entitlement and payment route.
Whether additional GST shown in a departmental debit note should be paid via a demand payment or by correcting the return depends on whether the short payment is treated as a bona fide mistake or as suppression; treatment as suppression denies input tax credit and may attract penalties. Payment following a scrutiny notice is treated as non voluntary, the department will record acceptance, and the taxpayer must establish bona fides to persuade the department to proceed under the less punitive provision so that recipient credit is preserved.