DRC-04 – Acknowledgement of Voluntary Payment

DRC-04 is issued by the Proper Officer as an official acknowledgement of the voluntary payment made by the taxpayer through DRC-03. Once the officer verifies the payment details and confirms that the amount has been correctly deposited, DRC-04 is generated on the portal as proof that the payment has been accepted. This acknowledgement is important because it formally concludes the voluntary payment process and records departmental acceptance in the taxpayer’s ledger and case file.

When It Is Issued

DRC-04 is triggered only after the taxpayer files DRC-03 and the officer reviews the payment to ensure correctness and completeness.

• Issued when voluntary tax, interest, or penalty is deposited in response to DRC-01A.
• Generated when payment is made after receiving DRC-01 or DRC-02 to settle or reduce demand.
• Used when taxpayer self-identifies a liability and pays without waiting for any notice.
• Provided during audit or investigation when the taxpayer makes voluntary deposits for detected discrepancies.

Legal Basis and Authority

DRC-04 functions as the officer’s formal confirmation of voluntary payment under the compliance framework of Sections 73 and 74.

• Governed by Rule 142(2), which mandates acknowledgement of voluntary payments made through DRC-03.
• Issued by the Proper Officer who is handling the related SCN or verification.
• Acts as proof that the amount paid has been accepted and linked with the correct tax period and proceedings.
• Completes the voluntary payment cycle, after which only the balance (if any) can be adjudicated.

Information Included in DRC-04

DRC-04 summarises the payment details and confirms that the amount has been successfully reconciled and accepted by the department.

• Contains GSTIN, legal name, and reference to the DRC-03 submitted by the taxpayer.
• Displays details of tax, interest, and penalty amounts paid voluntarily.
• Specifies the tax period and legal section (73 or 74) under which payment is made.
• Mentions the officer’s remarks confirming verification and acceptance of the payment.
• Serves as a portal-generated acknowledgment that the deposit is officially recorded.

Practical Notes

DRC-04 has significant value as it protects the taxpayer by recording the payment under proper legal proceedings and preventing future disputes about the same amount.

• Once DRC-04 is issued, the acknowledged part of liability cannot be demanded again.
• If payment fully covers the demand, the case may be concluded without further adjudication.
• If payment is partial, the officer may continue adjudication only for the remaining disputed portion.
• Taxpayers should download and retain DRC-04 as evidence for audit, enquiry, or future litigation.

Action After Receiving DRC-04

The taxpayer should confirm that the payment has been properly reflected in records and saved with the acknowledgment. If the matter is settled completely, no further action is needed; otherwise, the taxpayer must prepare to respond to remaining issues in the SCN or statement. The case proceeds next toward DRC-05 or DRC-07 depending on whether voluntary payment is full or partial.