What is DRC 3 Challan
This query is : Resolved
Ram Avtar Singh
(Expert)
24 May 2025
DRC-03 Challan under GST (Goods and Services Tax) is a form used for voluntary payment of tax or payment in response to a show-cause notice or demand issued by the tax authorities.
Form DRC-03 is used to make voluntary payments of:
Tax
Interest
Penalty
This payment can be made:
Suo moto (voluntarily by the taxpayer)
In response to a Show Cause Notice (SCN)
During audit/investigation/enforcement proceedings
Some typical scenarios where DRC-03 is used:
Voluntary disclosure of unpaid tax.
Before issuance of a Show Cause Notice (under Section 73 or 74 of CGST Act).
After receiving a notice but before adjudication to reduce penalties.
During departmental audits when discrepancies are identified.
Feature Description
Purpose Voluntary tax payment or in response to notice
Form type GST DRC-03
Payment type Tax/Interest/Penalty
Section 73 (non-fraud) / 74 (fraud) of CGST Act
Acknowledgment DRC-04 is issued after successful payment
Form DRC-03 is used to make voluntary payments of:
Tax
Interest
Penalty
This payment can be made:
Suo moto (voluntarily by the taxpayer)
In response to a Show Cause Notice (SCN)
During audit/investigation/enforcement proceedings
Some typical scenarios where DRC-03 is used:
Voluntary disclosure of unpaid tax.
Before issuance of a Show Cause Notice (under Section 73 or 74 of CGST Act).
After receiving a notice but before adjudication to reduce penalties.
During departmental audits when discrepancies are identified.
Feature Description
Purpose Voluntary tax payment or in response to notice
Form type GST DRC-03
Payment type Tax/Interest/Penalty
Section 73 (non-fraud) / 74 (fraud) of CGST Act
Acknowledgment DRC-04 is issued after successful payment
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