{"id":8368,"date":"2026-03-17T17:26:46","date_gmt":"2026-03-17T11:56:46","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8368"},"modified":"2026-03-17T17:26:46","modified_gmt":"2026-03-17T11:56:46","slug":"gstn-clarifies-drc-03-linking-for-appeal-pre-deposit","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/gstn-clarifies-drc-03-linking-for-appeal-pre-deposit","title":{"rendered":"GSTN Clarifies DRC-03 Linking for Appeal Pre-Deposit"},"content":{"rendered":"

GSTN Advisory, Dated 14-03-2026<\/em><\/p>\n

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

The clarification addresses issues where such payments are not automatically considered by the system while computing the mandatory pre-deposit<\/strong>.<\/p>\n

1. Creation of Demand ID and Automatic Adjustment<\/h2>\n

When a demand order (e.g., Form GST DRC-07)<\/strong> is issued:<\/p>\n

    \n
  • A Demand ID<\/strong> is created in Part II of the Electronic Liability Register<\/strong>.<\/li>\n
  • Payments made using the \u2018Payment towards Demand\u2019 functionality<\/strong> are automatically:<\/li>\n<\/ul>\n
      \n
    1. \n
        \n
      1. Linked to the Demand ID, and<\/li>\n
      2. Reflected in the liability register.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

        2. Issue with Payments Made Through Form GST DRC-03<\/h2>\n

        Payments made through Form GST DRC-03<\/strong> (typically during investigation):<\/p>\n

          \n
        • Are not automatically linked<\/strong> to any Demand ID<\/li>\n
        • Do not appear as adjusted<\/strong> in the Electronic Liability Register<\/li>\n<\/ul>\n

          As a result, while filing an appeal, the GST portal may not recognise such payments<\/strong>, and may continue to prompt taxpayers to pay the required pre-deposit.<\/p>\n

          3. System Computation During Appeal Filing<\/h2>\n

          While filing an appeal, the GST system:<\/p>\n

            \n
          • \n

            Automatically calculates the required payment<\/strong>, comprising:<\/p>\n<\/li>\n<\/ul>\n

              \n
            1. \n
                \n
              1. The admitted amount<\/strong>, and<\/li>\n
              2. The mandatory pre-deposit<\/strong><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n
                  \n
                • \n

                  Checks the amount already reflected against the Demand ID<\/strong> in the Electronic Liability Register.<\/p>\n<\/li>\n<\/ul>\n

                  Accordingly:<\/p>\n

                    \n
                  • If the amount already reflected is equal to or greater than the required amount<\/strong>, the appeal can be filed without additional payment<\/strong>.<\/li>\n
                  • If it is less<\/strong>, the taxpayer must pay the balance amount<\/strong>.<\/li>\n<\/ul>\n

                    4. Requirement to File Form GST DRC-03A<\/h2>\n

                    To ensure that payments made through DRC-03 are considered, taxpayers must:<\/p>\n

                      \n
                    • \n

                      File Form GST DRC-03A<\/strong> to link the payment with the relevant Demand ID<\/strong>.<\/p>\n<\/li>\n<\/ul>\n

                      Once linked:<\/p>\n

                        \n
                      • The payment becomes visible in the Electronic Liability Register<\/strong>, and<\/li>\n
                      • It is taken into account<\/strong> while calculating the mandatory pre-deposit for filing an appeal.<\/li>\n<\/ul>\n

                        5. Advisory to Taxpayers<\/h2>\n

                        GSTN has advised taxpayers to:<\/p>\n

                          \n
                        • File Form GST DRC-03A wherever applicable<\/strong>, and<\/li>\n
                        • Complete this process before filing an appeal<\/strong><\/li>\n<\/ul>\n

                          to avoid duplication of payment and ensure proper adjustment of amounts already paid.<\/p>\n

                          6. Objective of the Advisory<\/h2>\n

                          The advisory aims to:<\/p>\n

                            \n
                          • Resolve system-related issues in recognising DRC-03 payments<\/li>\n
                          • Ensure accurate computation of pre-deposit requirements<\/li>\n
                          • Facilitate smooth filing of appeals under GST<\/li>\n
                          • Improve transparency in the Electronic Liability Register system<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                            GSTN Advisory, Dated 14-03-2026 The Goods and Services Tax Network (GSTN) has…<\/p>\n","protected":false},"author":19,"featured_media":8378,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,62,189],"tags":[],"class_list":["post-8368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-statutory-scope"],"yoast_head":"\nGSTN Clarifies DRC-03 Linking for Appeal Pre-Deposit<\/title>\n<meta name=\"description\" content=\"GSTN advisory explains linking DRC-03 payments via DRC-03A to Demand ID for correct pre-deposit calculation while filing GST appeals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/gstn-clarifies-drc-03-linking-for-appeal-pre-deposit\" 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