GST- DRC 03 RCM Liability
This query is : Resolved
06 November 2025
Dear Members,
I have not paid RCM liability for June 2025 in one invoice issued by a registered party, which I noticed now in GSTR 8A while preparing for GSTR 9 -Annual return.
1. If I pay the liability through DRC 03 for F.Y. 2024-25, what is cause of payment i should mention- "Annual Return" or ''before show cause notice issue". Since I have heard Annual return option is for additional tax payments which are paid while filing Annual return and detected after time limit for claiming ITC has lapsed.
2. Can I claim ITC for the same in October 2025 GSTR 3B return to be filed since, I have made payment in DRC 03
3. Is it a mandatory condition that RCM liability should be disclosed in GSTR 3B for October 2025 to claim ITC in October 2025. Because I disclose so, again tax liability will be shown as payable in cash right.
4. Also, should the ITC be shown as available in GSTR 8A for the ITC to be claimed in GSTR 3B to be filed in October 2025.
PLEASE CLARIFY
I have not paid RCM liability for June 2025 in one invoice issued by a registered party, which I noticed now in GSTR 8A while preparing for GSTR 9 -Annual return.
1. If I pay the liability through DRC 03 for F.Y. 2024-25, what is cause of payment i should mention- "Annual Return" or ''before show cause notice issue". Since I have heard Annual return option is for additional tax payments which are paid while filing Annual return and detected after time limit for claiming ITC has lapsed.
2. Can I claim ITC for the same in October 2025 GSTR 3B return to be filed since, I have made payment in DRC 03
3. Is it a mandatory condition that RCM liability should be disclosed in GSTR 3B for October 2025 to claim ITC in October 2025. Because I disclose so, again tax liability will be shown as payable in cash right.
4. Also, should the ITC be shown as available in GSTR 8A for the ITC to be claimed in GSTR 3B to be filed in October 2025.
PLEASE CLARIFY
07 November 2025
1. Use “Voluntary payment before SCN” as the cause in DRC-03;
2. Yes, ITC can be claimed in October 2025 GSTR-3B;
3. Yes, RCM liability must be disclosed in GSTR-3B to claim ITC;
4. No, GSTR-2B (not 8A) is relevant for ITC eligibility, but RCM ITC is self-populated.
2. Yes, ITC can be claimed in October 2025 GSTR-3B;
3. Yes, RCM liability must be disclosed in GSTR-3B to claim ITC;
4. No, GSTR-2B (not 8A) is relevant for ITC eligibility, but RCM ITC is self-populated.
07 November 2025
1. Noted
2. Payment is done in November 2025 right, ITC can be claimed subject to payment of tax but in October 2025 i have not paid right so is it right to claim ITC.
3. If payment is done in DRC-03 then RCM paid in cash is debited from cash ledger & again if RCM liability is disclosed in GSTR 3B it will show GST payable in cash.
4. Noted
2. Payment is done in November 2025 right, ITC can be claimed subject to payment of tax but in October 2025 i have not paid right so is it right to claim ITC.
3. If payment is done in DRC-03 then RCM paid in cash is debited from cash ledger & again if RCM liability is disclosed in GSTR 3B it will show GST payable in cash.
4. Noted
07 November 2025
2. Only in November, in the month of payment.
3. - RCM liability must be disclosed in Table 3.1(d) of GSTR-3B for the relevant tax period to claim ITC in Table 4A(3) of the same return. - This is irrespective of whether the tax was paid via DRC-03 earlier. Disclosure ensures proper matching and audit trail.
3. - RCM liability must be disclosed in Table 3.1(d) of GSTR-3B for the relevant tax period to claim ITC in Table 4A(3) of the same return. - This is irrespective of whether the tax was paid via DRC-03 earlier. Disclosure ensures proper matching and audit trail.
07 November 2025
- DRC-03 is a voluntary payment mechanism, often used for past-period liabilities or during audits. It debits the cash ledger.
- However, DRC-03 does not auto-populate GSTR-3B. So, to claim ITC, you must still disclose the liability in GSTR-3B—even if already paid.
- No double payment occurs if:
- You’ve already paid via DRC-03.
- You disclose the liability in GSTR-3B but do not re-pay it via GSTR-3B (i.e., don’t re-debit the cash ledger).
- However, DRC-03 does not auto-populate GSTR-3B. So, to claim ITC, you must still disclose the liability in GSTR-3B—even if already paid.
- No double payment occurs if:
- You’ve already paid via DRC-03.
- You disclose the liability in GSTR-3B but do not re-pay it via GSTR-3B (i.e., don’t re-debit the cash ledger).
07 November 2025
To prevent the system from showing RCM liability again as “payable in cash”:
- Ensure DRC-03 payment is reflected in the cash ledger before filing GSTR-3B.
- When filing GSTR-3B:
- Disclose RCM liability in Table 3.1(d).
- Claim ITC in Table 4A(3).
- Do not re-pay the same liability via GSTR-3B if already paid via DRC-03.
- The portal will adjust the cash ledger accordingly, and no duplicate debit will occur.
- Ensure DRC-03 payment is reflected in the cash ledger before filing GSTR-3B.
- When filing GSTR-3B:
- Disclose RCM liability in Table 3.1(d).
- Claim ITC in Table 4A(3).
- Do not re-pay the same liability via GSTR-3B if already paid via DRC-03.
- The portal will adjust the cash ledger accordingly, and no duplicate debit will occur.
07 November 2025
- rom October 2025, auto-population of ITC in GSTR-3B has ceased.
- You must manually reconcile RCM liability and ITC using:
- Invoice Management System (IMS) for supplier-side documents.
- RCM Liability/ITC Statement under Services > Ledger > RCM Statement for internal reconciliation.
Refer: https://www.caclubindia.com/articles/no-more-auto-itc-in-gstr3b-from-1st-october-2025-54150.asp
Or https://tallysolutions.com/gst/how-to-claim-itc-and-report-in-gstr-3b-from-october-2025/
- You must manually reconcile RCM liability and ITC using:
- Invoice Management System (IMS) for supplier-side documents.
- RCM Liability/ITC Statement under Services > Ledger > RCM Statement for internal reconciliation.
Refer: https://www.caclubindia.com/articles/no-more-auto-itc-in-gstr3b-from-1st-october-2025-54150.asp
Or https://tallysolutions.com/gst/how-to-claim-itc-and-report-in-gstr-3b-from-october-2025/
09 November 2025
Good Luck ....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Partnership Deed Changes for Remuneration
- GST on Education Service
- Clarification regarding clubbing of AGM and EGM into one meeting
- PROVISION FOR GRATUTY
- Tax liabilities on purchase of agriculture land from adivasi to adivasi person in Maharashtra
- Sale of agrilculture land exmpted for aerial distance calculation procedure for online
- Purchase of residential house by a foreign national (Indian origin, not holding Indian passport)
- Reverse Factoring
- Compliance PF
- Appointment of auditor in agm
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
- Switch over to Composition Scheme
- Gstr 9 and itc
- Clarification regarding IMS
- RCM on Construction of Apartment - Real estate
- Treatment in GSTR-9
Trending Online Classes
-
All Subjects Combo (Regular Batch) Jan & May 26
CA Hardik Manchanda,CS Arjun Chhabra & Prof. Akash Agrawal
CAclubindia
