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
