GST DRC-03A: How to Link a DRC-03 Payment to a Demand (2026 Guide)

Form GST DRC-03A lets a taxpayer link a payment already made through DRC-03 to a demand order, so the demand is shown as paid from the date of the original payment. It exists because DRC-03 payments, often made during an audit or investigation, sit in the ledger without being attached to the demand that later arrives. Without DRC-03A the portal shows the full demand as outstanding, asks for the appeal pre-deposit again, and can block a waiver application. DRC-03A was introduced by Notification 12/2024-Central Tax from 10 July 2024 under Rule 142(2B), and it can be used only for DRC-03 payments made under the “Voluntary” or “Others” cause. This guide explains when to file it, how it works on the portal, and how to fix the other common DRC-03 problems in 2026.

For the basics of DRC-03 itself (when to pay voluntarily and how to file), see our guide to GST DRC-03 voluntary payment.

DRC-03 and DRC-03A side by side

Point	DRC-03	DRC-03A
What it does	Records a payment of tax, interest or penalty	Attaches an earlier DRC-03 payment to a demand order
Rule	Rule 142(2) and 142(3)	Rule 142(2B)
Moves money?	Yes, from the cash or credit ledger	No; it only re-labels a payment already made
Acknowledgement	DRC-04, generated by the portal	The demand is reduced in the liability register
Can be revised?	No	Not after filing; check the ARN and demand before submitting

When you need DRC-03A

• You paid during an audit, inspection or investigation and an order in DRC-07 later confirmed the demand. The order shows the full amount as payable until you link the payment.
• You are filing an appeal. A GSTN advisory of 14 March 2026 notes that the appeal module asks for the pre-deposit again when the DRC-03 payment is not linked to the demand ID. File DRC-03A first, then the appeal.
• You applied, or are applying, for the section 128A waiver on a demand order. Rule 164(2) requires the payment to be made against the demand’s debit entry, so a DRC-03 payment must be linked with DRC-03A before Form SPL-02.
• A rectification order (DRC-08) or appeal order (APL-04) has replaced the original demand, and your earlier payment needs to sit against the new figure.

When DRC-03A cannot be used

• The DRC-03 was filed under the “After SCN/Statement but before order” cause. Only payments made under “Voluntary” or “Others” can be linked.
• A DRC-05 has already been issued concluding proceedings for that payment.
• The payment has already been used against another demand. The form carries an undertaking that it has not, and a false declaration means repaying the amount with interest and a penalty under section 122(1)(x).

How to file DRC-03A on the portal

1. Log in and go to Services, then User Services, then My Applications, and choose “Form GST DRC-03A”.
2. Enter the ARN of the DRC-03 you want to link.
3. Select the demand order: DRC-07, DRC-08, APL-04 or the movement-of-goods orders MOV-09 and MOV-11.
4. The portal fills in the DRC-03 amounts and the demand amounts by tax head. Check that the heads (IGST, CGST, SGST, cess; tax, interest, penalty) match.
5. Tick the undertaking, sign with DSC or EVC, and file.
6. Check the electronic liability register: the demand should now show the amount as paid on the date of the DRC-03.

No time limit is prescribed for filing DRC-03A, but file it as soon as the order arrives. Recovery action and appeal deadlines do not wait for it. Technical problems go to the GST helpdesk under the “DRC-03A-Filing” category.

Section 128A waiver and DRC-03A

• The scheme: interest and penalty waived on section 73 demands for July 2017 to March 2020, if the full tax was paid by 31 March 2025.
• The forms: SPL-01 against a notice or statement, SPL-02 against an order. The application deadline was 30 June 2025.
• The DRC-03A link: for SPL-02, a tax paid through DRC-03 had to be linked first. GSTN’s own suggested workaround in March 2025 was to pay under “Others” and then file DRC-03A.
• If your application was rejected: courts have been lenient. The Karnataka High Court held in April 2026 that the SPL time limit is directory, and the Madras High Court (Madurai Bench) treated a missing DRC-03A as a procedural lapse and sent the rejection back for fresh consideration. A rejected applicant has grounds to ask for reconsideration.

Penalties now depend on when you pay

For tax periods from 2024-25, notices are issued under section 74A, which replaced sections 73 and 74. Paying through DRC-03 at the right time changes the penalty:

When tax and interest are paid	Not fraud	Fraud or suppression
Before the show cause notice	No penalty	15% of tax
Within 60 days of the notice	No penalty	25% of tax
Within 60 days of the order	Penalty as per the order	50% of tax

Sections 73 and 74 still apply to periods up to 2023-24. The 57th GST Council meeting in October 2026 recommended further relief, including no notice where tax is ₹10,000 or less and a 5% penalty for non-fraud cases paid soon after the order. These are recommendations and mostly proposed from 1 April 2027; they are not yet law.

Paid the wrong amount or under the wrong head?

• A filed DRC-03 cannot be edited or withdrawn. Unfiled drafts are purged after 15 days.
• The remedy is a refund in Form RFD-01 under “Excess payment of tax” or “Any other”, within two years of the payment.
• Payments made under pressure during a search without any adjudication have been ordered refunded. The Karnataka High Court did so in Gunnam Infra (November 2025), and in August 2026 ordered a refund with 6% interest where no DRC-04 had been issued, holding that the payment was not voluntary. Keep the DRC-04 for every voluntary payment.
• Interest and penalty cannot be paid from input tax credit. Only tax can be paid from the credit ledger.

DRC-03 and the GSTR-3B hard lock

• From the July 2025 tax period, the liability in GSTR-3B Table 3 that comes from GSTR-1 can no longer be edited. Corrections go through GSTR-1A before filing GSTR-3B.
• If you pay tax on an invoice through DRC-03 but the invoice was also reported in GSTR-1, it now flows into GSTR-3B automatically and you pay twice. Decide on one route before you pay.
• Returns more than three years past their due date can no longer be filed, so tax for those periods can only be paid through DRC-03.
• Reverse input tax credit through GSTR-3B Table 4(B) where you can, so it appears in the credit reversal statement; use DRC-03 for reversals only where the return route is closed.

Appeal pre-deposit in 2026

• First appeal: 10% of the disputed tax, capped at ₹20 crore each of CGST and SGST. Second appeal at the GST Appellate Tribunal: a further 10%.
• Penalty-only orders: from 1 October 2025, 10% of the penalty at each stage. The Delhi High Court has held that this does not apply where the notice was issued before 1 October 2025.
• A DRC-03 payment counts towards the pre-deposit only if it is linked to the demand. File DRC-03A before the appeal.

Checklist before you pay through DRC-03

1. Pick the right section: 73 or 74 for periods to 2023-24, 74A from 2024-25.
2. Pick the right cause. Use “Voluntary” before a notice and “Others” where you may later need to link it; avoid the SCN cause if a DRC-03A link may be needed.
3. Enter the correct financial year and tax period.
4. Pay interest and penalty in cash.
5. Save the DRC-04 acknowledgement.
6. When the order arrives, file DRC-03A straight away.

Frequently asked questions

What is Form GST DRC-03A?

It is the form, under Rule 142(2B), that links a payment made through DRC-03 to a demand order, so the demand is treated as paid from the DRC-03 date. It was introduced from 10 July 2024.

Can I file DRC-03A for a DRC-03 paid after the show cause notice?

Not if the DRC-03 was filed under the “After SCN/Statement but before order” cause. Only payments under “Voluntary” or “Others” can be linked.

Is there a time limit for DRC-03A?

None is prescribed, but it cannot be filed once a DRC-05 has closed the proceedings, and it should be filed before an appeal or waiver application.

Can a wrong DRC-03 payment be refunded?

Yes, through a refund application in RFD-01 within two years. The DRC-03 itself cannot be edited or withdrawn.

TAXAJ handles GST notices, DRC-03 and DRC-03A filings, waiver applications and appeals from our offices in Delhi, Bengaluru, Goa and Bihar. See our guide to replying to DRC-01 and ASMT-10 notices.

Last updated 26 October 2026. Sources: CGST Act, 2017, sections 49, 50, 54, 73, 74, 74A, 107, 112, 122 and 128A; CGST Rules, 2017, rules 142 and 164; Notifications 12/2024, 20/2024, 21/2024, 11/2025 and 16/2025-Central Tax; Circulars 125/44/2019 and 248/05/2025; GSTN advisories of 5 June 2024, 22 March 2025, 7 June 2025 and 14 March 2026; Karnataka High Court in Gunnam Infra (2025), Sri Laxmi Borewell Agencies (2026) and Hukkeri Taluka Sangh (2026); Delhi High Court in Rohit Garg (2026); recommendations of the 57th GST Council meeting. General information only; check your own facts with us before you pay or file.