Filing Support⏱ 5 min

💰

DRC-03 Computation

Compute voluntary tax payment with interest before the department raises a notice.

DRC-03 is the form for voluntary payment of GST liability — including interest and penalty — before a formal notice is issued. Filing DRC-03 voluntarily avoids penalty and closes the demand. GSTAgent computes the exact DRC-03 amount: tax shortfall, interest at 18% p.a. from the due date, and the appropriate form details.

DRC-03Interest 18%Voluntary paymentSec 73

Compute DRC-03 Amount →

The Problem

Why this needs to be automated

📅

Interest runs from return due date — not discovery date

If April GSTR-3B was under-paid and discovered in December, interest runs from 20th May — not December. Most CAs compute from the discovery date and under-pay interest, which the department corrects with further demand.

⚠

Penalty avoided only with voluntary DRC-03

If the department issues an ASMT-10 or SCN before you file DRC-03, penalty becomes mandatory. Voluntary payment before notice = only tax + interest (no penalty in non-fraud cases).

📊

Multiple periods mean complex interest calculation

If the liability spans multiple months, each month's shortfall has a different start date for interest computation. Getting the aggregate correct requires precise per-month calculation.

Regulatory Context

The law that makes this matter

Sec 73

Voluntary payment before notice

Tax + interest payable. No penalty if paid voluntarily before SCN. Minimum penalty ₹10,000 if paid after SCN but before order.

Sec 50

Interest at 18% p.a.

Interest on delayed payment of tax at 18% per annum from the day after due date to date of payment. Runs on net tax liability (not gross).

DRC-03

Voluntary tax payment form

Form DRC-03 filed on GST Portal under User Services → My Applications → Intimation of Voluntary Payment. Closes the demand if filed before SCN.

How It Works

4 steps. Mostly automated.

Identify the tax shortfall

From GSTR-1 vs 3B mismatch, RCM audit, ITC reversal computation — the exact tax shortfall per period is identified.

Interest computed per period

For each period with a shortfall: interest = tax × 18% × (days from return due date to payment date) / 365.

Total DRC-03 amount

Tax + interest across all periods summed. Penalty amount shown (applies only if post-SCN payment).

DRC-03 filing guidance

How to file on GST Portal: cause of payment, tax period, tax amount, interest amount. Reference number from DRC-03 filing to be noted.

Sample Output

What you actually see

Sample data — Metro Print Works Pvt. Ltd · FY 2026-27

Tax shortfall — GSTR-3B Apr 26

₹34,300

Interest from 20-May-26 to 23-Jun-26 (34 days)

₹575

Tax shortfall — GSTR-3B May 26

₹12,840

Interest from 20-Jun-26 to 23-Jun-26 (3 days)

₹19

Total DRC-03 amount

₹47,734

Penalty (if voluntary before SCN)

₹0

Sample data for illustration only. Actual results depend on your client's Tally data. Not professional tax advice.

Edge Cases

How GSTAgent handles the tricky ones

Scenario	GSTAgent Output
Tax paid in wrong head (IGST vs CGST+SGST)	Head correction shown — interest computed on the correct head shortfall only
Liability already partially paid in cash ledger	Partial credit applied — interest computed on net remaining amount
DRC-03 filed after SCN but before order	Minimum penalty of 25% of tax applicable (Sec 73 pre-order payment)

18%

Interest p.a. from due date

Day-accurate

Interest computed to exact days

₹0

Penalty if filed before SCN

5 min

Full DRC-03 amount ready

FAQ

Common questions

Where do I file DRC-03 on the GST Portal?

GST Portal → Services → User Services → My Applications → Application Type: Intimation of Voluntary Payment → Select DRC-03.

Can I file DRC-03 after an ASMT-10 notice?

Yes — you can respond to ASMT-10 by filing DRC-03. Penalty is 25% of tax if paid before order, 50% if paid after order but before appeal.

Is interest computed on IGST or CGST+SGST separately?

Interest is computed head-wise. If shortfall is IGST, interest applies to IGST shortfall only. CGST and SGST are computed separately.

Does DRC-03 close all future demand on that period?

DRC-03 closes the specific demand identified. If the department identifies additional shortfall in the same period later, a fresh notice can be issued within the limitation period.

Ready to run this workflow?

A GSTAgent subscription code is required. CA firm plans from ₹1,400/month for 10 clients.

Compute DRC-03 Amount →View pricing ← All workflows