1. It has been observed that some taxpayers have paid the demanded amount vide DRC 07/ DRC 08/ MOV 09/ MOV 11/ APL 04 through DRC-03 instead of using payment facility ‘Payment towards demand’ available on GST portal. This led to a situation where demand has been paid by the taxpayer, however the demand is not closed in the electronic liability register. To address this issue, the government has notified a new form named GST DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024.

2. Accordingly, GSTN has developed the new Form GST DRC-03A on GST portal which is available now to adjust the paid amount through DRC-03 against the corresponding demand order. Therefore, it is advised to the taxpayers to use the DRC-03A form to link the payment made vide DRC-03 with the demand order. Only DRC-03 forms where the cause of payment is either ‘Voluntary’ or ‘Others’ can be used in the Form GST DRC-03A.

3. Taxpayers will be required to enter the ARN of the DRC-03 along with the relevant demand order number on the portal. Upon entering the ARN and selecting the demand order number of any outstanding demand, the system will auto-populate relevant information of the DRC-03 form as well as from the specified demand order against which the payment is to be adjusted.

4. Once the adjustment is made, corresponding entries will automatically be posted in the taxpayer’s liability ledger to reflect the updated status of demands.

5. For detailed process, please click on Detailed Advisory.

6. Taxpayer may refer to the FAQs on the same topic.

7. In case taxpayers face any technical issue, a ticket shall be raised under category ‘DRC-03A-Filing’ on Grievance Redressal Portal: https://selfservice.gstsystem.in

Thanking You,
Team GSTN

Payment adjustment via DRC-03A enables linking DRC-03 payments to outstanding GST demands, updating the liability ledger. Form DRC-03A allows taxpayers who paid a GST demand via DRC-03 with cause recorded as Voluntary or Others to link that payment to the corresponding demand order by entering the DRC-03 ARN and selecting the demand order on the GST portal; the system auto-populates the DRC-03 and demand details and, after adjustment, posts ledger entries to update the taxpayer's liability register.