{"id":74984,"date":"2025-07-17T17:55:21","date_gmt":"2025-07-17T12:25:21","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=74984"},"modified":"2025-07-17T19:17:09","modified_gmt":"2025-07-17T13:47:09","slug":"drc-20-in-gst","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/drc-20-in-gst\/","title":{"rendered":"DRC 20 in GST: Everything You Need to Know"},"content":{"rendered":"\n
The Form GST DRC-20 application is filed by the registered taxpayer. It is specifically done for the deferment of GST payments (a lump sum demand amount) that is outstanding against them. The taxpayer can file to make the application for payment of the outstanding demand\/ GST demand in monthly instalments.<\/a><\/p>\n\n\n\n In this blog, we shall discuss the uses of the Form DRC-20 in GST<\/strong>, its conditions, and the steps to fill out the form.<\/p>\n\n\n\n Here is what the application of the taxpayer can request from the Commissioner\/proper officer upon filing the form GST DRC-20, as per payment terms:<\/p>\n\n\n\n \u25cf\u00a0To extend the timeline for associated with the default in payment of outstanding dues;<\/a><\/p>\n\n\n\n \u25cf Allow the concerned taxpayer to complete payment in instalments<\/p>\n\n\n\n The highest number of monthly instalments, according to payment terms, however, is limited to 24. Note that according to Section 50 of the CGST Act, the deferred payments\/payment in instalments shall attract an interest rate of 18%.<\/p>\n\n\n\n This Form GST DRC-20 comes in handy for a taxpayer when there is demand pending for recovery, but they are unable to make the full payment <\/a>at once. In such a case, the taxpayer shall use the form to defer the payment. They can also request to make the payment in instalments.<\/p>\n\n\n\n The Form GST DRC-20 can be filed by the taxpayer on the GST portal at any time, given that it\u2019s prior to generating a recovery ID. This allows the taxpayers to proceed with the recovery process seamlessly.<\/p>\n\n\n\n In particular, the Form DRC-20 in GST<\/strong> shall be filed if the demand amount is pending for recovery against the taxpayer under the GST Act. In case the taxpayer is unable to make the complete tax payment in one go, they can apply for a deferred payment plan<\/a> or send in an application for payment in installments.<\/p>\n\n\n\n Before initiating the filing process, decide whether you are applying for deferred payment or payment in instalments. Here is a step-by-step application process for filing GST DRC-20:<\/p>\n\n\n\n Step 1<\/strong>: To initiate filing Form GST DRC-20, start by logging in to the GST portal.<\/p>\n\n\n\n Step 2<\/strong>: Go to the ‘Dashboard’. Follow up by then going to the ‘Services’ section; click on ‘User services’; and finally ‘My application’.<\/p>\n\n\n\n Note<\/strong>: You may also navigate to the ‘Dashboard’, then go to the ‘Services’ section. Next, go to ‘Payments’ and lastly, ‘Application for Monthly Instalments or Deferred Payments’.<\/p>\n\n\n\n Step 3<\/strong>: The ‘My Applications’ page shall pop up. Choose the application form type as ‘Application for Deferred Payment or Payment in Instalments’ by clicking on the drop-down list.<\/a><\/p>\n\n\n\n Step 4<\/strong>: Choose \u2018New Application\u2019.<\/p>\n\n\n\n Step 5<\/strong>: A fresh application page will open up, where you will be required to provide the necessary information.<\/p>\n\n\n\n Here are the details you will be required to provide:<\/p>\n\n\n\n \u25cf\u00a0\u00a0Demand ID <\/strong>– Choose the \u2018Demand ID\u2019 by clicking on the drop-down option. The demand information that is outstanding against your chosen Demand ID shall be populated alongside the details related to the tax period.<\/p>\n\n\n\n Note<\/strong>: In case the demand amount is lower than \u20b925,000, an error message shall show up. It will state that a deferment facility is not available for any amount less than \u20b925,000. In case your formal application for deferment has already been filed against the chosen Demand ID, an error text<\/a> shall pop up. It will be noted that the application has already been filed. In case the ‘Recovery ID’ for the chosen Demand ID is pre-generated, an error text shall show up. It will be stated that the Recovery ID has already been generated and that you shall not be able to apply for deferment.<\/p>\n\n\n\n \u25cf\u00a0\u00a0Specify the Type of Payment <\/strong>\u2013 You may opt for \u2018monthly instalments\u2019, and you will be presented with an option to input the number of months. Proceed to click the \u2018Calculate button\u2019. You can opt for \u2018Split into equal instalments\u2019 and the outstanding amount shall be divided up into your preferred number of months (a maximum of 24 months). Finally, you can opt for \u2018Deferred payment\u2019 and settle on the preferred due date of payment.<\/p>\n\n\n\n \u25cf\u00a0\u00a0Upload the Necessary Documents<\/strong>: Type in a brief passage describing the document you want to upload as the \u2018supporting document\u2019. <\/a>Proceed to click on \u2018Choose File\u2019 and complete the uploading process.<\/p>\n\n\n\n \u25cf\u00a0 Provide Reasons<\/strong>: You may type in the necessary information. However, this is not a mandatory step.<\/p>\n\n\n\n \u25cf\u00a0 The Verification Process<\/strong>: Choose the authorised signatory. Proceed to tick off the declaration checkbox and type in the place. The ‘Designation’ or ‘Status’ sections shall get auto-populated. Click on the ‘Preview’ button before submission, after you’ve uploaded all the information.<\/p>\n\n\n\n Step 6<\/strong>: Make sure to minutely go through the preview of your application form, checking every detail in the process. Finally, you can click on the \u2018Submit\u2019 tab to continue.<\/p>\n\n\n\n Step 7<\/strong>: You can file your application either with EVC or DSC, on the \u2018submit application\u2019 page.<\/p>\n\n\n\n A provision acknowledgement page<\/a> shall pop open, and you will receive an SMS as well as an email with the intimation regarding the successful filing of your application. You will also receive your ARN. You may ‘claim on download’ in order to download the acknowledgement document.<\/p>\n\n\n\n It is also important to note that the regular checking of the GST Portal is crucial for possible updates or the intimation of payment made, to make sure that they are completed successfully.<\/p>\n\n\n\n This taxpayer uses the Form GST DRC-20<\/strong> when the demand amount is pending for recovery, and they are unable to make the entire payment at once. In such a case, the taxpayer shall use this form as a tool to defer the payment or simply make the payment in more manageable amounts<\/a> in instalments. This allows the taxpayer to conveniently make payments through Form GST DRC-20.<\/p>\n\n\n\n Follow the step-by-step guide to filing GST DRC-20 provided above to submit an application for deferred payment or payment in installments.<\/p>\n\n\n\n Accessing Your Filed Application<\/strong><\/p>\n\n\n\n Here are the steps you can follow to access your filed application form:<\/p>\n\n\n\n Step 1<\/strong>: Go to the \u2018Case Details\u2019 page of your specific application. Choose the \u2018APPLICATIONS\u2019 tab, in case it is not already selected by default in payment. You will find the option to access the acknowledgement document and your filed application on this page. You will also be able to view the supporting documents in PDF mode. Select \u2018BACK\u2019 in order to go back to the \u2018My Applications\u2019 page.<\/p>\n\n\n\n Step 2<\/strong>: Choose the documents under the column that reads “Action” in order to download. Post-downloading, you can easily view them.<\/p>\n\n\n\n Step 3<\/strong>: Choose the \u2018BACK\u2019 option to go back to the \u2018My Applications\u2019 page.<\/p>\n\n\n\n Checking the Issued Order on Your Application<\/strong><\/p>\n\n\n\n Here are the steps you can follow to check the issued order on your application form:<\/p>\n\n\n\n Step 1<\/strong>: Go to the relevant ‘Case Details’ and click on the tab that reads ‘ORDERS’. Locate the option to access the issued order, alongside attached documents, in the PDF mode.<\/p>\n\n\n\n You can click on \u2018BACK\u2019 to go back to the \u2018My Applications\u2019 section.<\/p>\n\n\n\n Step 2<\/strong>: Click on the hyperlink<\/a> that reads \u2018View\u2019 under the “Action” column. This will let you download and access the issued Order.<\/p>\n\n\n\n The instalment schedule lists the instalment details alongside the status of payments after the application of taxpayer goes through. So, the details of the payment made shall be viewed here. Here are the steps to view the instalment schedule:<\/p>\n\n\n\nWhat is Form DRC-20 under GST?<\/strong><\/h2>\n\n\n\n

Timeline for Submitting Form GST DRC-20<\/strong><\/h3>\n\n\n\n
How to File Form GST DRC-20?<\/strong><\/h2>\n\n\n\n

Making Payments through Form GST DRC-20<\/strong><\/h2>\n\n\n\n

Submitting an Application for Deferred Payment or Instalments<\/strong><\/h2>\n\n\n\n
Viewing the Instalment Schedule<\/strong><\/h3>\n\n\n\n
