The Jaipur Goods and Services Tax (GST) department, vide order no. 22/2023 dated October 2023 has issued an order regarding the verification of the pending challans of GST DRC-03. The GST department observed that there is a significant backlog of approximately 80,000 DRC-03 cases existing in the Zone, awaiting closure. The time limit specified under Section 73 of the CGST Act for verifying all pending DRC-03 cases for the fiscal year 2018-19 had approached rapidly.

It was noted that the jurisdictional Range Officers faced challenges in processing the DRCs. Most of the time, they lacked information about the source of payments, as taxpayers consistently cited ‘Voluntary Payment’ as the reason for payment. The matter has been examined in the light of Rule 142 of the CGST Rules read with DSR (Dispute Settlement & Resolution) Advisory No. 01/2019 dated 01.11.2019.

Accordingly, the following procedure is being laid down to process GST DRC-03s. It may be noted that voluntary payment of Tax, Interest, Penalty, etc. made by the taxpayer through FORM GST DRC-03 may stem from any of the following reasons:  during investigation proceedings by DGGI under the provisions of Section 63; Section 73(5)/ 74(5) before issuance of SCN; Section 73(8) / 74

(8) after issuance of SCN; Section 76; Section 122 to 125; or Sections 127, 129 or 130 of the CGST Act; during investigation proceedings by AE branch(s) of the Commissionerate under the provisions of Section 63; Section 73(5)/ 74(5) before issuance of SCN; Section 73(8) /74(8) after issuance of SCN; Section 76; Section 122 to 125; or Sections 127, 129 or 130 of the CGST Act; during audit proceedings under the provisions of Section 73(5) / 74(5) before issuance of SCN; Section 73(8) / 74(8) after issuance of SCN; or Section 76 of the CGST Act; liability arising out of proceedings initiated by SGST Authorities;

intimation of tax ascertained through FORM GST DRC-01A; liability arising on furnishing of Annual Return by the taxpayer;

liability arising out of scrutiny of returns under Section 61 of the CGST Act r/w Rule 99 of the CGST Rules by the proper officer; liability arising out of assessment of non-filers of returns under Section 62 of the CGST Act r/w Rule 100 of the CGST Rules by the proper officer; liability arising on account of self-reconciliation of FORM GSTR- 2A/FORM GSTR-2B vis-a-vis FORM GSTR-3B by the taxpayer; liability arising on account of self-reconciliation of FORM GSTR-1 vis-a- vis FORM GSTR-3B by the taxpayer;

(xi) liability arising on account of communication of system generated FORM GST DRC-01B under Rule 88C of the CGST Rules; liability arising on account of communication of system generated FORM GST DRC-01C under Rule 88D of the CGST Rules; reversal of proportionate input tax credit in terms of Rule 42(1)(1), 42(2)(a), 42(3)(a), 42(4)(c) or 43(2)(a) of the CGST Rules; return of erroneously granted refund in terms of Rule 86(4B) of the CGST Rules; payment of tax in case of shortfall in duty paid procurement of inputs/ input services by promoter/ developer in terms of notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 as amended r/w Instruction No. 03/02/2020-GST dated June 24, 2020; any other reason.

In the above mentioned instances, liability is discharged through FORM GST DRC-03 either with reference number of SCN or intimation reference number of FORM GST DRC-01 A, etc. or by providing payment date and Financial Year. It is decided that Superintendent (Technical) (email- cco-tech-jpr@gov.in) from this office shall coordinate with all issues relating to DRC-03 disposal.

It is further laid down that- All agencies of CBIC & the state authorities shall arrange to forward a consolidated list of DRC-03 filed by them till October 15, 2023 to e-mail address cco-tech-jpr@gov.in in the format provided in Annexure-I. State authorities shall also send relevant documents viz. Investigation report/ conclusion letter/ DRC-01, DRC-07, etc. along with the list.

All agencies of CBIC shall forward the list to concerned ranges directly on a fortnightly basis for subsequent periods. The State authorities shall continue to forward the fortnightly list to above e-mail address cco-tech-jpr@gov.in.

The JRO would re-assign the DRC-03s filed by the taxpayer at the instance of Audit and DGGI, to the concerned Circle of the Audit Commissionerates and DGGI formations. The Officer of the Circle concerned and DGGI formation would issue DRC-04 in all cases followed by DRC-05 or DRC-01 as the case may be. As the functionality to re-assign the DRC-03 to AE Branch(s) by JRO is presently not active, AE Branch(s) will assist the JRO in verification and disposal of the DRC-03 filed on the basis of proceedings initiated by them.

The JRO would, with the assistance of officers from AE Branch(s), issue DRC-04 in all cases followed by DRC-05 or DRC-01 as the case may be.

Where the DRC-03 has been filed in response to the proceedings initiated by the concerned JRO at his own level, the JRO would himself issue the DRC-04 in all cases, DRC-05/ DRC-01/ DRC-07 as the case may be.

The progress of the verification process to re-assign and further verification of DRC-03 would be supervised by the concerned DC/AC (AE); DC/AC Planning Cell of Audit Commissionerates; DC/AC in charge of the concerned division of the respective Commissionerates.

A report in respect of verified DRC-03s, would be furnished to the Technical Branch of CCO in the format prescribed at Annexure-II (for executive Commissionerates), Annexure-III (for Audit Commissionerates and for DGGI JZU), under the signature of the concerned ADC/JC of executive/Audit Commissionerates DGGI Formation, on monthly basis.