INPUT OF RCM Deposit through DRC03

RCM deposit through DRC-03 is legally permissible under Rule 142(2A) of CGST Rules, but ITC on that payment depends heavily on which financial year the RCM relates to.

For current-year RCM (FY 2025-26):
Declare the liability in GSTR-3B Table 3.1(d) for the relevant month and pay in cash. You can claim ITC in Table 4(A)(1) of the same return ,  RCM paid and RCM ITC claimed in the same period. Using DRC-03 for current-period RCM is unusual; better to declare it in the regular GSTR-3B.

For prior-year RCM (FY 2024-25 or earlier):
You can pay the tax via DRC-03 as voluntary disclosure. However, ITC on this payment is blocked under Section 16(4) of CGST Act. The ITC window for FY 2024-25 invoices closed on November 30, 2025 (or on filing GSTR-9, whichever was earlier). Paying via DRC-03 now does not reopen the ITC window.

Key check before using DRC-03:
1. Is this RCM for the current year? Then declare in GSTR-3B instead.
2. Is this a prior-year missed liability? Then DRC-03 is correct for payment, but write off the ITC as blocked.
3. Has there been a department notice? If yes, the voluntary disclosure via DRC-03 may still reduce interest and penalty exposure.

This [GST DRC notice reply guide](https://taxgarden.in/blog/gst-drc-01b-drc-01c-notice-reply-india-2026) covers the DRC-01B/DRC-01C framework triggered after such disclosures.