DRC-14 — Certificate of Payment by Third Person

DRC-14 is issued when a third person, who received a recovery notice in DRC-13, has paid the specified amount directly to the government. This form serves as an official certificate confirming such payment. It completes the garnishee recovery process and ensures that both the taxpayer and the department have a formal record of the recovery made through the third party.

When DRC-14 Is Issued

DRC-14 is generated only after the third person complies with the direction and deposits the required amount.

• Issued when a customer or debtor pays the amount demanded in DRC-13.
• Used when a bank remits balance from the taxpayer’s account as instructed.
• Applied when any third party discharges liability owed to the taxpayer.
• Triggered immediately after verification of successful payment.

Legal Setting

The form is part of the recovery mechanism governed by Section 79, ensuring proper documentation of payments collected through garnishee proceedings.

• Governed by Rule 145(2) of the CGST Rules.
• Issued by the Proper Officer handling recovery of the taxpayer’s dues.
• Serves as proof that the third person has complied with DRC-13.
• Ensures transparency in recovery operations under garnishee provisions.

Information Included in DRC-14

DRC-14 captures the essential details of the payment received from the third person.

• Contains the GSTIN, name of taxpayer, and reference to DRC-13.
• Mentions the third person’s details—name, address, and role.
• Shows the amount paid and the date of payment.
• Indicates the mode of remittance and payment reference.
• Certifies that the amount has been credited against the taxpayer’s liability.

Practical Importance

This form is important because it concludes the garnishee recovery step and protects all parties involved by documenting payment clearly.

• Prevents disputes regarding whether the third person complied.
• Helps reconcile taxpayer’s outstanding liability after part-payment.
• Acts as legal proof for the third person that they fulfilled their obligation.
• Allows the department to update recovery records accurately.

Action After Issuance

The taxpayer should verify that the paid amount has been credited to their liability ledger. The third person should retain DRC-14 as evidence for having discharged their obligation. The department proceeds with further recovery only for any remaining outstanding balance.