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What is DRC 3 Challan

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Daya

Daya (Querist)
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19 May 2025 what is DRC 3 Challan under GST.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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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

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