GSTN introduces online facility for clarification of variation in tax liability and Input Tax Credit difference

The Goods and Services Tax Network (GSTN) has introduced an online facility for clarification of variations in tax liability and input tax credit differences.

Features of this facility are given below:

The first feature lets taxpayers clarify variations in tax liability found by the tax department in their GSTR-1 and 3B online filings.

(a) Taxpayers receive an intimation in the form of DRC-01B. They can make the payment of the differential amount and/or file a reply in Farm DRC-01B, providing clarification.

(b) The second feature allows taxpayers to explain differences in Input Tax Credit between GSTR-3B returns and GSTR-2B statements online.

(c) Taxpayers receive an intimation in the form of DRC-01C. They can pay the differential amount and/or file a reply in Form DRC-01C Part B, providing clarification.

The above functionalities have automated the process of identifying mismatches in ITC/tax liability and have eased the process of compliance for taxpayers.