The Goods and Services Tax Network (GSTN) has recently issued the advisories regarding pre-deposit for First Appeal and tax liability breakup confirmation in Form GSTR-3B. The key aspects of the advisories are summarized hereinbelow:
Pre-Deposit While Filing Appeal
- During investigations, some taxpayers pay amounts voluntarily using Form GST DRC-03. However, when filing an appeal against a demand order, the GST portal may still ask for payment of required amount (i.e., Admitted amount + Pre-Deposit)
- The aforesaid issue is on account of the fact that payments made through Form DRC-03 are not automatically linked to the Demand ID in the Electronic Liability Register, unlike payments made through “Payment towards Demand”
- To ensure that Form DRC-03 payment is counted against a particular demand, taxpayers need to file Form GST DRC-03A, which links the payment to the corresponding Demand ID
- Once the payment is linked through Form DRC-03A, the portal will recognize it while calculating the pre-deposit amount, avoiding any duplicate payment requirement
- Taxpayers are advised to file Form DRC-03A wherever applicable before filing an appeal. Guidance for linking payments is available in the GST portal manual
Tax Liability Breakup in GSTR-3B
- Under Section 50 of the CGST Act, 2017, interest is payable if tax liability of a previous period is paid in a later period. The “Tax Liability Breakup, As Applicable” tab in Form GSTR-3B captures such liabilities
- From February 2026 onwards, the GST Portal would auto-populate this breakup based on document dates reported in Form GSTR-1/ GSTR-1A/ IFF for prior period supplies whose tax is being discharged in the current period
- Taxpayers must review this breakup on the payment page, click “SAVE” to confirm, or edit if required, before filing Form GSTR-3B via EVC or DSC
- Although the confirmation is ideally required only for prior period liabilities, currently it is being prompted in all cases, for which the GSTN is working for a resolution
- Meanwhile, taxpayers should open the tab and click “SAVE” to complete filing
Click to download a copy of the advisories for your reference