CBIC Updates Rule 142 of CGST Act with New Procedures for Voluntary Tax Payments

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 12/2024 – Central Tax dated July 10, 2024, to further amend Rule 142 of the CGST Rules. This amendment, effective from July 10, 2024, specifies the procedures for handling voluntary tax payments made by registered taxpayers and outlines the process for issuing orders and acknowledgments by the proper officer.

Key Changes in Rule 142 of the CGST Rules

Before Amendment

1. Payment and Acknowledgment: Previously, if a person chargeable with tax made a voluntary payment of tax, interest, and penalty (as applicable) before receiving a notice or statement, they had to inform the proper officer using FORM GST DRC-03. The proper officer would then issue an acknowledgment in FORM GST DRC-04.
2. Submissions Against Proposed Liability: If a person made a partial payment or desired to file submissions against the proposed liability, they could do so using Part B of FORM GST DRC-01A.

After Amendment

1. Electronic Acknowledgment: Now, when a taxpayer makes a voluntary payment before receiving a notice or statement, they must inform the proper officer using FORM GST DRC-03. The acknowledgment, in FORM GST DRC-04, will be made available electronically through the common portal.
2. Partial Payment and Submissions: If a taxpayer has made a partial payment or wants to file submissions against the proposed liability, they can do so using Part B of FORM GST DRC-01A. The proper officer may then issue an intimation in Part-C of FORM GST DRC-01A, accepting the payment, submissions, or both.
3. New Provisions for Electronic Liability Register: A new sub-rule (2B) has been introduced. If a person makes a voluntary payment of tax, interest, penalty, or any other amount due, they may file an application in FORM GST DRC-03A electronically. The amount paid and intimated through FORM GST DRC-03 will be credited to the Electronic Liability Register in FORM GST PMT-01 against the debit entry created for the said demand.

However, if an order in FORM GST DRC-05 has been issued concluding the proceedings in respect of the payment, an application in FORM GST DRC-03A cannot be filed for the same payment.

Official copy of the notification has been attached