DRC-04 is issued to acknowledge voluntary tax payments matching claimed dues.
Taxpayers must first respond to DRC-01 and notify payment using DRC-03.
GST officers verify payments before issuing form DRC-04.
Form DRC-04 can be downloaded from the 'Acknowledgement' tab on the GST portal.
Timely payment ensures compliance and avoids further GST notices.
Taxpayers receive form DRC-04 from the GST authorities when they fully pay the tax dues. The tax officer issues form DRC-04 in GST when the claims in show cause notice and the payment received from taxpayers with respect to the notice match.
If there is a mismatch, the GST officer will not issue form DRC-04. Go through this blog to learn in detail about the DRC-04 form to ensure business compliance with GST regulations
What Is DRC 04 in GST?
When a taxpayer voluntarily pays the tax dues, they receive form DRC-04 from a competent GST officer. The officer performs verification which includes assessing whether there is a discrepancy between the claimed dues and the voluntarily made payment.
In case an assessee pays dues less than the actual due, the proper officer will notify the taxpayer about the discrepancy. If the actual claims and voluntary payment match, the GST officer issues form DRC-04 as an acknowledgement.Â
When and Why Is DRC-04 Applicable?
Once a taxpayer pays voluntary outstanding taxes using form DRC-03, DRC-04 applies. Here is a scenario that illustrates the application of DRC-04:
Suppose due to a mismatch in GST payment for a particular GSTIN, a GST officer issues a show cause notice (SCN) in the DRC-01 form.
The registered taxpayer has to download form DRC-01 on receiving the notification.
If the taxpayer disagrees with the notice and the mentioned reason for the mismatch, they can reply using the GST portal attaching the relevant supporting documents.
The taxpayer has to pay the dues claimed if they agrees with the notice. After making the payment, the taxpayer has to notify the GST officer using form DRC-03.
On receiving the notification, the tax officer has to check whether the dues and claims match, including penalty and interest. If the dues match the claims, the tax officer will issue form DRC-04 to acknowledge the payment by the taxpayer.
The GST officer has to verify the payments by the GSTIN holder before filing DRC-04. Here are the steps taxpayers need to follow to file DRC-04:
Step 1: Access the GST portal and locate the DRC-04 verification task on the task list of the assigned GST officer or inspector.
Step 2: The GST officer has to click the hyperlink to open the DRC-03 form after completing the verification.
Step 3: The proper officer has to check the payment details.
Step 4: To verify the payment, the officer has to go to the ‘Actions’ tab and click on ‘Verify Payment’. It will redirect to various verification parameters.
Step 5: If all the verification parameters match the payment and claims, the DRC-04 option will appear on the GST portal.
Step 6: The GST officer will then have to issue DRC-04 and the taxpayer will receive notification to download the form issued.
How to Check DRC-04 in the GST portal?
As a taxpayer, you can check DRC-04 on the unified GST portal. On the 'Acknowledgement' tab of the portal, you can find such forms from the GST authority.Â
How to Download DRC-04 in the GST Portal?
Here is how you can download DRC-04:
Step 1: Visit the GST portal and log in with your user credentials.
Step 2: Navigate to the ‘Acknowledgement’ tab.
Step 3: Click on the ‘Download’ link to download and save form DRC-04 on your device.
If you are a taxpayer who received show cause notice in form DRC-01, ensure you pay the tax dues within the stipulated time. Further, inform the tax officer about the payment in form DRC-03. This will facilitate the issuance of form DRC-04 in GST by the tax officer on verification of actual dues and paid dues.
To avoid receiving further notices, ensure you pay the dues if you agree to the initial SCN within the mentioned time period.
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FAQs
What is Form DRC-04 in GST?
Form DRC-04 is an acknowledgment issued by GST authorities to a taxpayer after verifying that the voluntary tax payment matches the claims made in a show cause notice (SCN). It serves as confirmation that the dues, including penalties and interest, have been paid correctly.
When is Form DRC-04 issued?
Form DRC-04 is issued when a taxpayer pays outstanding tax dues voluntarily using form DRC-03 and the GST officer verifies that the payment aligns with the claims mentioned in form DRC-01 (SCN). If there is any mismatch, the form is not issued.
How can taxpayers download Form DRC-04 from the GST portal?
Taxpayers can log in to the GST portal, navigate to the ‘Acknowledgement’ tab, and locate the issued DRC-04 form. By clicking on the ‘Download’ link, they can save the form to their device for record-keeping.
What should a taxpayer do upon receiving a show cause notice (SCN) in DRC-01?
Upon receiving form DRC-01, the taxpayer must respond to the notice on the GST portal by providing relevant supporting documents. If the taxpayer agrees with the notice, they should pay the dues via DRC-03 and notify the GST officer.
What happens if there is a mismatch between the claimed dues and payment?
If the payment made by the taxpayer is less than the claimed dues, the GST officer will notify the taxpayer about the discrepancy. The taxpayer must resolve the issue and pay the remaining dues before form DRC-04 is issued.
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