Process of applying for Deferred Payment of GST or Payment of GST in Installments (FORM GST DRC – 20)
1. What is the purpose of FORM GST DRC – 20?
FORM GST DRC – 20 is an application form that can be filed by any taxpayer to apply for one of the following two options available to them in case they cannot pay the entire amount due under the GST Act in one go:
- Deferred payment: when due is deferred for payment at later stage
- Payment in instalments: when due is paid in installments
2. When can I file FORM GST DRC – 20?
You can file FORM GST DRC – 20 when Demand is pending for recovery under GST Act against you and you wish to apply for deferred payment or payment in instalments of amount due under the GST Act.
3. Can I file FORM GST DRC – 20 in respect of amount against return related demands?
No, application for deferred payment using FORM GST DRC – 20 cannot be filed against return related demands. You can file application for deferred payment using FORM GST DRC – 20 for other than return related demands, which are posted in Liability Register Part-B.
4. How many applications for deferred/payment in Instalments can I file?
Only one “Application for Payment in Instalments” can be submitted against a particular Demand ID.
5. In FORM GST DRC – 20, I need to enter the number of months for my instalments. Is there any limitation on the number of months?
Yes. Maximum no of Installment allowed is 24.
Process of applying for Deferred Payment of GST or Payment of GST in Installments
6. How is the interest calculated if I select the option of “Monthly Instalments” in FORM GST DRC – 20?
Interest is calculated considering the following points:
- Interest will be applicable only on the tax/cess amount applied for instalment/deferment.
- No interest will be payable on the Interest, Penalty and any other amount in the Demand ID.
- Interest will not be calculated by system as part of application for deferred payment/payment in instalment. Instead, if any interest needs to be recovered from taxpayer as part of monthly instalment then tax officer will create separate demand ID which will be paid by taxpayer.
7. I have filed FORM GST DRC – 20. What actions will take place on the GST Portal now?
Once you have filed FORM GST DRC – 20, following actions will take place on the GST Portal:
- SMS and Email will be sent to you intimating ARN and successful filing of the Form.
- Your application for payment in Installments shall be submitted to the Commissioner/proper officer of concerned jurisdictional authority and will become a pending item in his/her queue of work-items. The Officer will adjudicate on the application and either Accept or Reject or Accept with modification your request. You can access the generated ARN and view the filed application from the following navigation: Dashboard > Services > User Services > My Applications > Case Details > APPLICATIONS
- Demand ID in DCR, in respect of which you have filed this application, will be flagged to show that such an application is filed against the Demand ID.
8. How will I come to know that the officer has processed my application for deferred/payment in Instalments?
Once the officer has processed an application for deferred/payment in Instalments, following actions will take place on the GST Portal:
- Approval or Rejection or Modification order will be generated and intimation of issue of order shall be sent via email and SMS to taxpayer.
- Status of ARN shall get updated to ‘Rejected’ in case of rejection, “Approved” in case of acceptance and “Application approved with modification” in case of modification.
- Order will be available at the dashboard of taxpayer for view, print and download: Dashboard > Services > User Services > My Applications > Case Details > ORDERS
- Status of Recovery ID remains the same in case of rejection. In case of acceptance or modification, the status of recovery ID shall change to “Deferred Payment/Payment by Instalments”. If there is a default in the payment of monthly instalments, the status of recovery ID shall change from Deferred Payment/Payment by Instalments to Recoverable
9. What will happen if I am unable to make the required payment, after the acceptance of my application for payment in Instalments?
In case there is any default in payment of any one installment on its due date, the whole outstanding balance payable on such date will become due and payable forthwith, and will be liable for recovery without any further notice to the Taxpayer.
10. During the processing of applications for deferred payment or payment in instalments, what all and when the Status changes take place in an ARN/Case ID on the GST Portal?
On the GST Portal, during the processing of applications for deferred payment or payment in instalments, the ARN/Case ID may undergo following Status changes:
- Pending for Processing: When a taxpayer files the application and it is under work item of tax officer
- Approved: When tax officer approves the application of taxpayer for deferred payment or payment in instalments
- Application approved with modification: When tax officer approves the application with certain modifications
- Rejected: When tax officer rejects the application of taxpayer for deferred payment or payment in instalments