Paying taxes isn’t always straightforward, especially when faced with complex regulations. But did you know there’s a helpful option called “Payment on Voluntary Basis” under the CGST Act, 2017? Let’s break it down into simple terms to understand how it works and when you might need it.
What is Payment on Voluntary Basis?
It’s like a safety net for taxpayers. If you owe taxes under Sections 73 or 74 of the CGST Act, 2017, you can pay them voluntarily within 30 days of getting a notice (called a Show Cause Notice or SCN). You can even pay before getting a notice, just to stay ahead of things.
When Can I Pay Voluntarily?
You’ve got two windows:
- Before Notice: Pay any time before they send you a formal notice.
- Within 30 Days After Notice: If they do send a notice, you’ve got 30 days to settle up.
But remember, you can’t pay voluntarily after those 30 days are up.
What Do I Need to Pay Voluntarily?
Depends on when you pay:
- Before Notice: Just make sure they haven’t already sent you a notice.
- After Notice: Pay within 30 days of getting the notice.
How Do I Pay Voluntarily?
Just follow these steps:
- Go to Services > User Services > My Applications > Intimation of Voluntary Payment – DRC – 03.
- Fill in the details and you’re good to go!
Can I Pay Part of What I Owe?
Sorry, no partial payments allowed. You’ll need to pay the full amount they’re asking for in the notice.
What if I Don’t Have Enough Money?
No worries! You can deposit the required amount in your Electronic Cash Ledger using the “Create Challan” option on the payment screen.
What Happens After I File Form GST DRC-03?
They’ll update your records and generate a Payment Reference Number (PRN) for you.
How Will I Know If They Send Me Anything?
They’ll shoot you an email and a text message to keep you in the loop.
Choosing a Reason for Payment
When you’re making a payment, they might ask you why. Just pick one of these:
- If your GSTR-1 doesn’t match your GSTR-3B: Choose “Liability mismatch- GSTR-1 to GSTR-3B”.
- If your GSTR-2A/2B doesn’t match your GSTR-3B: Go for “ITC Mismatch- GSTR-2A/2B to GSTR-3B”.
To make these payments, go to Services > User Services > My Application > Application Type > Select Intimation of Voluntary Payment-DRC -03, Click New Application > select Cause of Payment.
By understanding and using this voluntary payment option, you can stay on top of your tax game and avoid any last-minute hassles.
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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
