Payment of interest from cash ledger balance in SGST/CGST

If you have a credit balance in your SGST/CGST cash ledger after closing your business and wish to pay interest liability via DRC-03, you first need to transfer the balance to the 'Interest' head. This is done by filing Form GST PMT-09. Once the funds are in the correct head, you can then proceed to pay the interest using DRC-03. If your GST registration has been cancelled, it's advisable to communicate with your GST officer with all relevant details.