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While preparing Form GSTR-9C, a registered person finds that it has short-paid GST and decides to clear the liability itself before any notice is issued. How is the shortfall discharged?

Question and options

While preparing Form GSTR-9C, a registered person finds that it has short-paid GST and decides to clear the liability itself before any notice is issued. How is the shortfall discharged?

  1. By disclosing it in Form GSTR-9C, which itself discharges it

  2. By adding it to the next return without interest

  3. By paying the tax alone through Form DRC-03, as no notice exists

  4. By paying the tax with interest through Form DRC-03

Answer and explanation

Correct answer: D - By paying the tax with interest through Form DRC-03

Tax short-paid that is found while reconciling must be paid with interest under section 50 of the CGST Act. A voluntary payment before notice, under section 73(5) or 74(5), or under section 74A for periods from 2024-25, is made through Form GST DRC-03. Merely reporting the shortfall in the reconciliation statement does not pay it, and interest runs whether or not a notice has been issued.

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