GSTN Advisory on Pre-Deposit Payments for Appeals The Goods and Services Tax Network (GSTN) has issued an advisory dated March 14, 2026, to address challenges faced by taxpayers regarding pre-deposit payments when filing appeals before the First Appellate Authority under the Goods and Services Tax (GST) law. The advisory clarifies that taxpayers who have made payments through Form GST DRC-03 must file Form GST DRC-03A to link such payments with the relevant Demand ID before submitting an appeal. This step ensures that pre-deposit requirements are properly adjusted, preventing duplicate payments. The detailed procedure for linking DRC-03 with the Demand ID is outlined in the manual available on the GST portal. The advisory highlights a common issue where taxpayers voluntarily deposit amounts through Form GST DRC-03 during the investigation phase. However, when they later file an appeal against a demand order, the GST portal still prompts them to pay the mandatory pre-deposit, even though they have already paid an amount exceeding the required limit. This occurs because the system does not automatically associate payments made via DRC-03 with the Demand ID. When a demand order is issued in Form GST DRC-07, a Demand ID is generated, and the demand is recorded in Part II of the Electronic Liability Register. Payments made using the “Payment towards Demand” functionality are automatically adjusted against the Demand ID. In contrast, payments through Form GST DRC-03 are not linked to the Demand ID and do not appear as adjusted in the register. During the appeal filing process, the GST system calculates the Admitted amount and the Mandatory pre-deposit. It checks whether any amount has been paid against the Demand ID.#form_gst_drc_03 #form_gst_drc_07 #goods_and_services_tax_network #first_appellate_authority #form_gst_drc_03a
DRC-03 Payments Must Be Linked via DRC-03A for Appeal Pre-deposit Recognition: GSTN Taxpayers in India face challenges with the Goods and Services Tax (GST) portal’s process for handling pre-deposit requirements when filing appeals. Despite making voluntary payments during investigations, many are still prompted to pay again when submitting appeals to the First Appellate Authority. The issue stems from how the system processes payments made through Form GST DRC-03. According to a recent advisory from GSTN, payments submitted via Form GST DRC-03 are not automatically connected to any demand order in the Electronic Liability Register. This means the system does not recognize these payments when determining the mandatory pre-deposit required for appeals. When a demand order, such as Form GST DRC-07, is issued, a Demand ID is created in the Electronic Liability Register. If taxpayers pay using the “Payment towards Demand” option, the portal adjusts the payment against that Demand ID. However, payments made through Form GST DRC-03 lack this linkage and do not appear as adjusted against the demand in the register. The advisory clarifies that the GST system does not automatically recognize payments made via Form GST DRC-03 against any specific Demand ID. As a result, these amounts are not factored into the pre-deposit calculation for appeals. To address this, GSTN has introduced Form GST DRC-03A, which allows taxpayers to manually link their voluntary DRC-03 payments to the relevant Demand ID. Once linked, the payment is recognized in the liability register, ensuring it is accounted for during the appeal process. This prevents duplicate pre-deposit requests and reduces unnecessary financial burdens on taxpayers.#goods_and_services_tax #gstn #form_gst_drc_03 #form_gst_drc_07 #electronic_liability_register
