Mistake in selection of tax payment in DRC 03

[ABC XYZ]

· Received DRC 01 (10/01/2022).

· Received GST demand notice DRC-07 (03/02/2022) for Rs.1,24,641 CGST & SGST each.

· Paid Rs. 2,10,412 (11/01/2022) & Rs.39,692 (15/01/2022).

· Notice based on turnover; DRC-03 mapped in Annual Return.

· DRC-03 dues not mapped with DRC-07 due to incorrect head in Annual Return.

· Filed DRC-03A but couldn’t submit due to an error.

· Request assistance to resolve.

[Asha Latha]

As on date, there is a restriction in the portal for filing the Form DRC-03A, when the payment was in Form DRC-03 under Annual Return category.

A grievance can be raised regarding this, once the portal is updated, application of Form DRC-03A could be filed.

[KASTURI SETHI]

On which date you tried to file Form GST DRC-03A ?

[YAGAY andSUN]

To address the issues related to DRC-01, DRC-07, DRC-03, and DRC-03A, here's a step-by-step guide on how you can proceed:

1. Understand the Issue:

• DRC-01: This is a demand notice issued by the department, informing you of the GST demand raised by them. It's based on the audit or scrutiny and usually specifies the amounts due under CGST and SGST.
• DRC-07: This is the GST demand notice confirming the exact amount you need to pay, in your case Rs. 1,24,641 each under CGST and SGST, which amounts to a total demand of Rs. 2,49,282.
• Payment made: You have made payments of Rs. 2,10,412 (11/01/2022) and Rs. 39,692 (15/01/2022), which is partially related to the demand raised. The amounts you have paid seem to be higher than the demand of Rs. 2,49,282, so it is important to ascertain whether there is any excess payment or adjustment required.
• Issue with DRC-03 Mapping: It appears that the dues mentioned in DRC-03 (which is for payment of dues), are not mapping correctly with the demand shown in DRC-07 due to incorrect head mapping in the Annual Return (GSTR-9). This is a common issue where mismatched heads or incorrect classification of payments cause reconciliation issues.
• DRC-03A Filing Error: You filed the DRC-03A for settlement, but it couldn’t be submitted due to a system error.

2. Resolve Mapping and Head Error in Annual Return (GSTR-9):

• Check GSTR-9: The issue with incorrect head mapping likely stems from how the dues were classified in your Annual Return (GSTR-9) for the relevant year. Ensure that all tax liability under the right heads (CGST/SGST/IGST) was correctly reported. You might need to revisit the tax liability reported in GSTR-9 and correct any misclassifications.
• Rectification of Annual Return:
  • If you realize that the classification in GSTR-9 was incorrect, you can file a revised GSTR-9 (if within the permissible period). Alternatively, you can make adjustments in the current GSTR-9 for the relevant year.
  • After correcting the head issue in GSTR-9, the DRC-03 mapping should ideally get corrected in the system.

3. Resolve the DRC-03 and DRC-07 Mismatch:

• Payment Adjustment: Since you made the payments earlier than the formal DRC-07 was issued, verify if the payments have been correctly applied. You may want to check if the payment details from your GST portal have been correctly linked to the demand.
  • Go to the GST Portal → Services → Payments → Track Payment Status. Verify if the payments have been posted to the correct GSTIN and whether they are associated with the correct demand heads (CGST and SGST).
• Check Payment Posting: If the payments made on 11/01/2022 and 15/01/2022 were not linked to the demand raised in DRC-07, you may need to manually link them in the payment adjustment section or request the department to apply the payments correctly. You can raise a service request (SR) on the GST portal to resolve this.

4. Filing of DRC-03A:

• Since DRC-03A couldn’t be submitted due to an error, clear the error by following these steps:
  • Check Error Message: Check the error message while submitting DRC-03A for details. Errors could occur due to missing information or incomplete details in the form.
  • Correct the Form: Ensure that the form is filled correctly, including payment details and tax heads. Make sure the demand and payment details are correctly entered.
  • Reattempt Submission: Once the error is identified and corrected, re-submit the DRC-03A for settlement.

5. Contact GST Helpdesk (if issues persist):

If the issue persists, you can contact the GST helpdesk for assistance in resolving the mapping and submission issues.

• Service Request (SR): You can file a service request through the GST portal under the "Help" section for assistance with technical issues related to the filing of DRC-03 and DRC-03A.
• Email/Phone: You can also reach out to the GST helpdesk via email or phone for direct support.

6. Other Options:

• Audit/Assessment Help: In case you feel that there is a mistake in the demand raised or an issue with the payment reconciliation, you can request for an audit/assessment to clear the issue.
• Legal Consultation: If the issue is complex and involves a significant amount or error in demand, consulting with a GST consultant or tax advisor might help you navigate the procedures better.

Summary Steps:

1. Rectify the incorrect head mapping in GSTR-9 (if applicable).
2. Check the payment status on the GST portal and ensure the payments are correctly linked to the DRC-07 demand.
3. Reattempt to file DRC-03A, correcting the form based on the error message received.
4. Contact GST Helpdesk if issues persist, either through service request or customer support.
5. Seek legal or professional help if the issue involves complex adjustments or disputes.

By following these steps, you should be able to resolve the mismatch in payments and the DRC-03 and DRC-07 filings, and the errors in submitting DRC-03A.