Form GST DRC-01C pertaining to ITC mismatch in GSTR-2B and GSTR-3B now available

As per the instructions of the GST Council, the GSTN has developed a facility to generate an automatic intimation in Form GST DRC-01C that allows the taxpayer to explain the discrepancy between the input tax credit available in the GSTR-2B statement and the ITC claimed in the GSTR-3B return online. The GST portal currently has this feature operational.

This feature makes a comparison between the ITC available in GSTR-2B/2BQ and the ITC declared in GSTR-3B/3BQ for every return period. The taxpayer will receive a notification in the form of DRC-01C if the claimed ITC in GSTR 3B exceeds the allowable ITC in GSTR-2B by a predetermined limit or if the percentage difference exceeds the configurable threshold.

The taxpayer is required to submit a response using Form DRC-01C Part B after getting a notification.

The taxpayer may choose to use Form DRC-03 to report the specifics of the payment made to cover the difference, or they may choose to combine both. Alternatively, the taxpayer may choose to explain the disparity.

The impacted taxpayers will not be allowed to file their subsequent period GSTR-1/IFF if they do not file a response in Form DRC-01C Part B.