GSTN Clarifies DRC-03 Linking for Appeal Pre-Deposit

GSTN Advisory, Dated 14-03-2026

The Goods and Services Tax Network (GSTN) has issued an advisory clarifying the treatment of payments made through Form GST DRC-03 while filing an appeal before the First Appellate Authority.

The clarification addresses issues where such payments are not automatically considered by the system while computing the mandatory pre-deposit.

1. Creation of Demand ID and Automatic Adjustment

When a demand order (e.g., Form GST DRC-07) is issued:

• A Demand ID is created in Part II of the Electronic Liability Register.
• Payments made using the ‘Payment towards Demand’ functionality are automatically:

1. 1. Linked to the Demand ID, and
   2. Reflected in the liability register.

2. Issue with Payments Made Through Form GST DRC-03

Payments made through Form GST DRC-03 (typically during investigation):

• Are not automatically linked to any Demand ID
• Do not appear as adjusted in the Electronic Liability Register

As a result, while filing an appeal, the GST portal may not recognise such payments, and may continue to prompt taxpayers to pay the required pre-deposit.

3. System Computation During Appeal Filing

While filing an appeal, the GST system:

• Automatically calculates the required payment, comprising:

1. 1. The admitted amount, and
   2. The mandatory pre-deposit

• Checks the amount already reflected against the Demand ID in the Electronic Liability Register.

Accordingly:

• If the amount already reflected is equal to or greater than the required amount, the appeal can be filed without additional payment.
• If it is less, the taxpayer must pay the balance amount.

4. Requirement to File Form GST DRC-03A

To ensure that payments made through DRC-03 are considered, taxpayers must:

• File Form GST DRC-03A to link the payment with the relevant Demand ID.

Once linked:

• The payment becomes visible in the Electronic Liability Register, and
• It is taken into account while calculating the mandatory pre-deposit for filing an appeal.

5. Advisory to Taxpayers

GSTN has advised taxpayers to:

• File Form GST DRC-03A wherever applicable, and
• Complete this process before filing an appeal

to avoid duplication of payment and ensure proper adjustment of amounts already paid.

6. Objective of the Advisory

The advisory aims to:

• Resolve system-related issues in recognising DRC-03 payments
• Ensure accurate computation of pre-deposit requirements
• Facilitate smooth filing of appeals under GST
• Improve transparency in the Electronic Liability Register system