CA Pratibha Goyal | Oct 6, 2023 |
GSTN issues Advisory on DRC-01C Difference in ITC as per GSTR-2B & GSTR-3B
Goods and Service Tax Network (GSTN) has issued an advisory on the difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-3B. Central Board of Indirect Taxes and Customs (CBIC) inserted Rule 88D in CGST Rule, 2017 dealing with the difference in input tax credit available in GSTR-2B and ITC availed in GSTR-3B vide issuing Notification No. 38/2023 – Central Tax dated 04th August 2023. This Functionality in the form of DRC-01C is now operational on the GSTN Portal.
GST Return Filing: Interplay of GSTR-1, GSTR-3B, GSTR-2B and Tax Payment
The GSTN System will now compare ITC as per GSTR-2B/2A and ITC availed in GSTR-3B and in case of a mismatch, the taxpayer shall receive an intimation in the form of Form DRC-01C. The intimation is sent if the claimed ITC exceeds the ITC available as per GSTR-2B by predefined limits, as directed by the competent authority.
GSTR-1 filing to be stopped if you have mismatch in your GSTR-Returns: Brief Analysis
Response for the intimation will be sent in part B of the form DRC-1C. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03 or provide an explanation for the difference out of the options provided in the form or even choose a combination of both options and file it.
Taxpayers will not be able to file subsequent period GSTR-1 or use the Invoice Furnishing Facility if no proper response is filed.
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