{"id":90925,"date":"2026-10-26T23:30:41","date_gmt":"2026-10-26T18:00:41","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/gst-drc-03a-link-payment-to-demand\/"},"modified":"2026-10-26T23:30:41","modified_gmt":"2026-10-26T18:00:41","slug":"gst-drc-03a-link-payment-to-demand","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/gst-drc-03a-link-payment-to-demand\/","title":{"rendered":"GST DRC-03A: How to Link a DRC-03 Payment to a Demand (2026 Guide)"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>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 &#8220;Voluntary&#8221; or &#8220;Others&#8221; cause.<\/strong> 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.<\/p>\n<p class=\"wp-block-paragraph\">For the basics of DRC-03 itself (when to pay voluntarily and how to file), see our guide to <a href=\"https:\/\/www.taxaj.com\/learn\/gst-drc-03-voluntary-payment-when-and-how-to-use-it-correctly\/\" target=\"_blank\" rel=\"noopener\">GST DRC-03 voluntary payment<\/a>.<\/p>\n<h2 class=\"wp-block-heading\">DRC-03 and DRC-03A side by side<\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Point<\/th>\n<th>DRC-03<\/th>\n<th>DRC-03A<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>What it does<\/td>\n<td>Records a payment of tax, interest or penalty<\/td>\n<td>Attaches an earlier DRC-03 payment to a demand order<\/td>\n<\/tr>\n<tr>\n<td>Rule<\/td>\n<td>Rule 142(2) and 142(3)<\/td>\n<td>Rule 142(2B)<\/td>\n<\/tr>\n<tr>\n<td>Moves money?<\/td>\n<td>Yes, from the cash or credit ledger<\/td>\n<td>No; it only re-labels a payment already made<\/td>\n<\/tr>\n<tr>\n<td>Acknowledgement<\/td>\n<td>DRC-04, generated by the portal<\/td>\n<td>The demand is reduced in the liability register<\/td>\n<\/tr>\n<tr>\n<td>Can be revised?<\/td>\n<td>No<\/td>\n<td>Not after filing; check the ARN and demand before submitting<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading\">When you need DRC-03A<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>You paid during an audit, inspection or investigation<\/strong> and an order in DRC-07 later confirmed the demand. The order shows the full amount as payable until you link the payment.<\/li>\n<li><strong>You are filing an appeal.<\/strong> 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.<\/li>\n<li><strong>You applied, or are applying, for the section 128A waiver<\/strong> on a demand order. Rule 164(2) requires the payment to be made against the demand&#8217;s debit entry, so a DRC-03 payment must be linked with DRC-03A before Form SPL-02.<\/li>\n<li><strong>A rectification order (DRC-08) or appeal order (APL-04)<\/strong> has replaced the original demand, and your earlier payment needs to sit against the new figure.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">When DRC-03A cannot be used<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>The DRC-03 was filed under the &#8220;After SCN\/Statement but before order&#8221; cause.<\/strong> Only payments made under &#8220;Voluntary&#8221; or &#8220;Others&#8221; can be linked.<\/li>\n<li><strong>A DRC-05 has already been issued<\/strong> concluding proceedings for that payment.<\/li>\n<li><strong>The payment has already been used<\/strong> 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).<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">How to file DRC-03A on the portal<\/h2>\n<ol class=\"wp-block-list\">\n<li>Log in and go to Services, then User Services, then My Applications, and choose &#8220;Form GST DRC-03A&#8221;.<\/li>\n<li>Enter the ARN of the DRC-03 you want to link.<\/li>\n<li>Select the demand order: DRC-07, DRC-08, APL-04 or the movement-of-goods orders MOV-09 and MOV-11.<\/li>\n<li>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.<\/li>\n<li>Tick the undertaking, sign with DSC or EVC, and file.<\/li>\n<li>Check the electronic liability register: the demand should now show the amount as paid on the date of the DRC-03.<\/li>\n<\/ol>\n<p class=\"wp-block-paragraph\">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 &#8220;DRC-03A-Filing&#8221; category.<\/p>\n<h2 class=\"wp-block-heading\">Section 128A waiver and DRC-03A<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>The scheme:<\/strong> interest and penalty waived on section 73 demands for July 2017 to March 2020, if the full tax was paid by 31 March 2025.<\/li>\n<li><strong>The forms:<\/strong> SPL-01 against a notice or statement, SPL-02 against an order. The application deadline was 30 June 2025.<\/li>\n<li><strong>The DRC-03A link:<\/strong> for SPL-02, a tax paid through DRC-03 had to be linked first. GSTN&#8217;s own suggested workaround in March 2025 was to pay under &#8220;Others&#8221; and then file DRC-03A.<\/li>\n<li><strong>If your application was rejected:<\/strong> 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.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Penalties now depend on when you pay<\/h2>\n<p class=\"wp-block-paragraph\">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:<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>When tax and interest are paid<\/th>\n<th>Not fraud<\/th>\n<th>Fraud or suppression<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Before the show cause notice<\/td>\n<td>No penalty<\/td>\n<td>15% of tax<\/td>\n<\/tr>\n<tr>\n<td>Within 60 days of the notice<\/td>\n<td>No penalty<\/td>\n<td>25% of tax<\/td>\n<\/tr>\n<tr>\n<td>Within 60 days of the order<\/td>\n<td>Penalty as per the order<\/td>\n<td>50% of tax<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p class=\"wp-block-paragraph\">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 \u20b910,000 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.<\/p>\n<h2 class=\"wp-block-heading\">Paid the wrong amount or under the wrong head?<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>A filed DRC-03 cannot be edited or withdrawn.<\/strong> Unfiled drafts are purged after 15 days.<\/li>\n<li><strong>The remedy is a refund<\/strong> in Form RFD-01 under &#8220;Excess payment of tax&#8221; or &#8220;Any other&#8221;, within two years of the payment.<\/li>\n<li><strong>Payments made under pressure during a search<\/strong> 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.<\/li>\n<li><strong>Interest and penalty cannot be paid from input tax credit.<\/strong> Only tax can be paid from the credit ledger.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">DRC-03 and the GSTR-3B hard lock<\/h2>\n<ul class=\"wp-block-list\">\n<li>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.<\/li>\n<li>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.<\/li>\n<li>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.<\/li>\n<li>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.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Appeal pre-deposit in 2026<\/h2>\n<ul class=\"wp-block-list\">\n<li>First appeal: 10% of the disputed tax, capped at \u20b920 crore each of CGST and SGST. Second appeal at the GST Appellate Tribunal: a further 10%.<\/li>\n<li>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.<\/li>\n<li>A DRC-03 payment counts towards the pre-deposit only if it is linked to the demand. File DRC-03A before the appeal.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Checklist before you pay through DRC-03<\/h2>\n<ol class=\"wp-block-list\">\n<li>Pick the right section: 73 or 74 for periods to 2023-24, 74A from 2024-25.<\/li>\n<li>Pick the right cause. Use &#8220;Voluntary&#8221; before a notice and &#8220;Others&#8221; where you may later need to link it; avoid the SCN cause if a DRC-03A link may be needed.<\/li>\n<li>Enter the correct financial year and tax period.<\/li>\n<li>Pay interest and penalty in cash.<\/li>\n<li>Save the DRC-04 acknowledgement.<\/li>\n<li>When the order arrives, file DRC-03A straight away.<\/li>\n<\/ol>\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n<h3 class=\"wp-block-heading\">What is Form GST DRC-03A?<\/h3>\n<p class=\"wp-block-paragraph\">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.<\/p>\n<h3 class=\"wp-block-heading\">Can I file DRC-03A for a DRC-03 paid after the show cause notice?<\/h3>\n<p class=\"wp-block-paragraph\">Not if the DRC-03 was filed under the &#8220;After SCN\/Statement but before order&#8221; cause. Only payments under &#8220;Voluntary&#8221; or &#8220;Others&#8221; can be linked.<\/p>\n<h3 class=\"wp-block-heading\">Is there a time limit for DRC-03A?<\/h3>\n<p class=\"wp-block-paragraph\">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.<\/p>\n<h3 class=\"wp-block-heading\">Can a wrong DRC-03 payment be refunded?<\/h3>\n<p class=\"wp-block-paragraph\">Yes, through a refund application in RFD-01 within two years. The DRC-03 itself cannot be edited or withdrawn.<\/p>\n<p class=\"wp-block-paragraph\">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 <a href=\"https:\/\/www.taxaj.com\/learn\/gst-notice-drc-01-asmt-10-how-to-reply-professionally\/\" target=\"_blank\" rel=\"noopener\">replying to DRC-01 and ASMT-10 notices<\/a>.<\/p>\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/wa.me\/918802912345?text=I%20need%20help%20with%20GST%20DRC-03%20or%20DRC-03A\" target=\"_blank\" rel=\"noopener\">WhatsApp our GST team<\/a><\/div>\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+918802812345\">Call 88028 12345<\/a><\/div>\n<\/div>\n<p class=\"has-small-font-size wp-block-paragraph\"><em>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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form GST DRC-03A links a DRC-03 payment to a demand order under Rule 142(2B). When to file it, how it works on the portal, its role in appeals and the section 128A waiver, and how to fix wrong DRC-03 payments in 2026.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-90925","post","type-post","status-publish","format-standard","hentry","category-income-tax"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=90925"}],"version-history":[{"count":0,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90925\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=90925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=90925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=90925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}