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Annual return liability

17 July 2020

An additional liability under Annual return is to discharged through DRC-03 in cash or credit.

pls clarify with relevant notification/circular/instruction.

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3 Replies

Nilkesh Parmar (106 Points)
Replied 17 July 2020

The same has clarified through press release issued in first week of August or July 2019. Where is has been clarified that the liability need to be paid in only. However, DRC-03 allow to set off liability through ITC. Hence, many companies have adjusted their huge liabilities through ITC only.

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Vikasanand Gupta (180 Points)
Replied 17 July 2020

Thanks Nilkesh ji, but discharging through itc is an offense in the light of the press release discussed by you. which is liable to be reverse and paid through cash only.
pls eleborate it

Vijayprakash P (1313 Points)
Replied 17 July 2020

Form DRC03 is filed for making a voluntary payment of outstanding liabilities u/s 73 &74 CGST Act. All payments need to be made either from ITC available in the Electronic Credit Ledger or cash balance available in the Electronic Cash Leger. But in the case of interest and penalties ITC utilisation is not available. It has to be compulsorily paid in cash.

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