What is the FORM GST DRC – 20?
FORM GST DRC – 20 is an application which can be applied by any taxpayer to one of the following two options to apply if he cannot pay the entire amount under the GST Act at once:
Deferred Payments: When the arrears for payment are removed at a later stage.
Payment in installments: When payment is made in installments in due period.
When can taxpayer file Form GST DRC-20?
A taxpayer can file Form GST DRC-20 when a demand for recovery under GST Act is pending against him and he wants to apply for deferred payment or payment in payment of amount under GST Act.
The taxpayer needs a valid login credential to enter this application.
Can the taxpayer file Form GST DRC-20 in respect of the amount against the respective demands of the return?
No, taxpayer cannot file FORM GST DRC – 20 application for deferred payment using GST returns against the respective demands.
The taxpayer having GST registration can apply deferred payment using FORM GST DRC-20, which is posted in the Electronic Liability Register, Part-B, in addition to the demands related to the return.
Important: Only an “application for payment in installments” can be submitted against a special demand ID. And maximum 24 installments are allowed.
How is interest calculated if a taxpayer select the option of “Monthly installments” in FORM GST DRC – 20?
Interest is calculated considering the following points:
- Tax /Cess applicable for interest installment/deferred will be applicable only.
- No interest will be payable on demand ID, penalty and any other amount in demand ID.
- Interest will not be calculated by the system as part of the application for deferred payment / installments payment. Instead, if an interest is to be recovered from the taxpayer as part of the monthly installments, the tax officer will create a separate demand ID which will be paid by the taxpayer.
If the taxpayer has filed FORM GST DRC-20, what will be the action on the GST portal?
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After the taxpayer submits the Form GST DRC-20, the following actions will be carried out on the GST portal:
- The GST portal will generate and display an application reference number (ARN) receipt with the same “Save and Print” option.
- An SMS and email will be sent to the taxpayer to intimidate the ARN and make the form successful.
- The application of the taxpayers for payment in installments will be submitted to the appropriate officer of the concerned Commissioner / Jurisdiction Authority and will become a pending item under his work head.
- The officer will decide on the application and accept or reject or accept your request with amendments. It can access the generated ARN and view applications filed with the following steps: go to the Dashboard then visit on Services, then select the user services then go to my application and then case details and last and final applied.
- The demand ID in DCR, in respect of which the taxpayer has filed this application, will be flagged to indicate that any such application has been filed against the demand ID.
How will a taxpayer know that the officer has processed my application for deferred/ payment in installments?
Once the officer has processed the application for deferred payments / payment in installments, the following action will be taken on the GST portal:
- Approval or rejection or amendment orders will be generated and the taxpayer will be informed via email and SMS to issue the order.
- The status of ARN will be updated to ‘AR Rejected’ in case of rejection, “Approved” in case of acceptance, and “Approved application with amendment” in case of an amendment.
- The order will be available to view, print and download on the taxpayer’s dashboard: navigate to the Dashboard then go to the Services select User Services go to My Applications see Case Details and Order
- The status of the recovery ID is the same in the case of rejection. In case of acceptance or modification, the recovery ID status will “defer payment/payment by installments”. If there is any default in payment of monthly installments, then the status of Recovery ID by the installments will change from Deferred Payment / Payment to Recoverable.
What will happen if the taxpayer is unable to make the required payment after acceptance of my application for payment in installments?
If there is a default in the payment of any one installment on its due date, the entire amount due on such date shall be due and payable and shall be liable to recover without notice to the taxpayer.
What and when does the status change in ARN / Case ID on GST portal during processing of applications for deferred payment or payment in installments?
On the GST portal, during processing of applications for deferred payment or payment in installments, ARN / Case ID can undergo status change:
Pending for processing: When a taxpayer files an application and it is subject to the tax head of the tax officer.
Accepted: When the tax officer approves the taxpayer’s application for deferred payment or payment in installments.
Approved application with amendment: When the tax officer approves the application with some amendments.
Rejected: When the tax officer rejects the taxpayer’s application for deferred payment or payment in installments.