GST DRC-21 explained: order allowing or rejecting instalments

If instalments are allowed

Read the schedule closely: number of instalments, amount and due date of each, and the interest position. Interest under Section 50 continues on the outstanding amount. Set up reminders or standing instructions so that no instalment is missed.

If the order allows fewer instalments than you asked for, or a shorter extension, plan the cash flow immediately. A partly favourable order is still binding on its terms, and the default rule applies to whatever schedule it sets.

• Pay each instalment against the demand in the liability register
• Keep proof of every payment
• Check the ledger after each payment
• Inform the officer if any payment does not reflect

Effect of default

Under Section 80, default in payment of any one instalment on its due date makes the whole outstanding balance payable on that date itself, and it can be recovered without further notice. Missing one date can therefore trigger bank recovery for the entire balance.

If the request is rejected

The demand stands payable as per the original order. Consider paying from other sources, appealing if the appeal period is still open, or making a fresh, better-documented case only if circumstances have genuinely changed. Act quickly, because recovery can follow.

Other points

A DRC-21 order does not settle the merits of the demand or extend any appeal deadline. If you are appealing part of the demand and paying the rest in instalments, keep both tracks documented clearly. Keep the DRC-21 order with the demand file.

If your circumstances change during the instalment period, for example a large receivable is collected, consider clearing the balance early to stop interest and remove the default risk altogether.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.