Payment on Voluntary Basis is a facility given to tax payers to make payment u/s 73 or 74 of the CGST Act, 2017 within 30 days of issuance of Show Cause Notice (SCN). Payment could also be made by taxpayers before SCN is issued.
You can make voluntary payment before issue of notice u/s 73 or 74 of the CGST Act, 2017 or within 30 days of issue of show cause notice (SCN) under the said sections. You cannot make voluntary payment after 30 days of issue of SCN.
The pre-conditions to make voluntary payment are:
a. In case, voluntary payment is made before issue of SCN
• Show Cause Notice under determination of tax should not have been issued.
b. In case, voluntary payment is made after issue of SCN or statement
• 30 days’ time has not lapsed since SCN is issued.
To make voluntary payment against the liability (tax, interest & penalty) based on self-ascertainment of tax, navigate to Services > User Services > My Applications > Intimation of Voluntary Payment - DRC - 03 option.
GST Portal does not allow for making partial payments against a liability raised in a SCN. Complete payment of the amount being demanded in SCN has to be made.
Application for intimation of voluntary payment can be saved at any stage of completion for a maximum time period of 15 days. If the same is not filed within 15 days, the saved draft will be purged from the GST database. To view your saved application, navigate to Services > User Services > My Saved Applications option.
You can deposit the amount in Electronic Cash Ledger through "Create Challan" functionality which is available on voluntary payment screen. On click of "Create Challan" button, you will be redirected to Create Challan screen in Payment module. In the Create challan page, challan amounts will be auto-populated based on the amount of additional cash required considering the tax liabilities and others.
Electronic Liability Register, Electronic Cash Ledger and Electronic Credit Ledger will be updated upon filing of Form GST DRC-03 i.e. Debit/Credit (both) entry will be posted simultaneously and PRN will be generated accordingly.
The system sends an email and SMS to the taxpayer on issuance of any communication (Notices/Orders) by Tax Officer to taxpayer.
Taxpayer needs to select “Liability mismatch- GSTR-1 to GSTR-3B” as cause of payment, when there is a liability mismatch between Form GSTR-1 and Form GSTR-3B and taxpayer is making payment of such liability using Form DRC-03.
Taxpayer needs to select “ITC Mismatch- GSTR-2A/2B to GSTR-3B” as cause of payment, when there is ITC mismatch between Form GSTR-2A/2B and Form GSTR-3B and taxpayer is making payment of such liability arising using Form DRC-03.
These are additional reasons made available under Intimation of Voluntary Payment-DRC-03 for taxpayers for making payments for liabilities noticed later on. The navigation to make such payment is Services > User Services > My Application > Application Type > Select Intimation of Voluntary Payment-DRC -03, Click New Application > select Cause of Payment.