Voluntary Payment Facility – The taxpayers have the facility to make Voluntary Payment in GST under Section 73 or 74 of the CGST Act, 2017 within 30 days of issue of Show Cause Notice (SCN). Payment can also be made by taxpayers before the SCN is issued
When Can a GST Holder/Taxpayer Make Voluntary Payment in GST
A GST payer/taxpayer can make voluntary payment before issuing notice under section 73 or 74 of CGST Act, 2017, or within 30 days of issue of show cause notice (SCN) under the said sections. It cannot make voluntary payments after 30 days of the issue of SCN.
NOTE: Here, the taxpayer is that person has registration under GST and liable for GST Return Filing
What are the Pre-requisites for Making Voluntary Payments?
The pre-requisites for voluntary payment are:
A) In case, voluntary payment is made before issuing SCN
- Show cause notice should not have been issued under the assessment of tax.
B) In case, voluntary payment is made after the issue of SCN or statement
- 30 days have not passed since the SCN was issued.
How can GST Holder Make a Voluntary Payment from the GST Portal
To make voluntary payment in GST against liability (taxes, interest, and penalties) based on tax receipt, GST holder that, registered on GST with GST Registration need to go to the official portal of GST and then go to the services choose the User Services to select My Applications and then select Voluntary Payment Notice – DRC – 03 options. Also Know: Basic Requirements for Starting a BPO Company
Can a taxpayer Make Partial Payment Against the Liability Raised in SCN under GST?
No, the GST portal does not allow partial payment against the liability raised in SCN.
The amount being sought in SCN is to be paid in full.
Can a Taxpayer save an Application for notification of Voluntary Payment on the GST Portal?
Yes, an application for a notice of voluntary payment can be saved at any stage of completion of a maximum period of 15 days. If it is not filed within 15 days, then it will remove the saved draft from the database of GST.
To view saved applications, Visit GST main portal and go to Services select the User Services. And then select My Saved Applications option.
If the taxpayer does not have sufficient balance to pay against the liability payable in the SCN, what can he do?
The taxpayer can deposit the amount in electronic cash bookkeeping through the “Create Challan” functionality which is available on the voluntary payment screen. On clicking the “Create Challan” button, it will be redirected to the invoice screen in the payment module. On the Create Invoice page, the invoice amount will be auto-populated based on the amount of additional cash considering tax liabilities and more.
What will Happen While filing Form GST DRC-03
The Electronic Liability Register, Electronic Cash Ledger, and Electronic Credit Ledger will be updated upon filing Form GST DRC-03 i.e. Debit / Credit (both) entry will be posted simultaneously and PRN will be generated accordingly.