GSTN issued FAQs on Return Compliance in Form DRC-01B

GSTN recently issue an advisory on Online Compliance Pertaining to Liability / Difference Appearing in R1 – R3B (DRC-01B). GSTN has developed a functionality to enable the taxpayer to explain the difference in GSTR-1 & 3B return online as directed by the GST Council. This feature is now live on the GST portal.

Now, the Goods and Services Tax Network has issued FAQs related to Online Compliance Pertaining to Liability / Difference Appearing in R1 – R3B (DRC-01B).

FAQs on Return Compliance in Form DRC-01B (Intimation of difference in liability reported in statement of outward supplies and that reported in return)

1. When can Form DRC-01B be filed?

For each return period, the system examines the difference between the obligation stated in form GSTR-1/IFF and the liability paid in GSTR-3B/3BQ. An intimation is sent to you if the liability declared in GSTR-1 exceeds the liability paid in Form GSTR-3B by a pre-defined limit for a return period, or if the percentage difference between the liabilities declared in GSTR-1 and the liability paid in Form GSTR-3B exceeds the configurable percentage threshold for a return period.

If you get an intimation in Form DRC-01B, you must respond in Form DRC-01B Part B, if the difference between the liability stated in GSTR-1/IFF and that paid through GSTR-3B/3BQ exceeds the configurable threshold limit.

Note: If a taxpayer doesn’t file response to Form GST DRC-01B for previous tax period, then for the subsequent tax period, they will not be able to file their Form GSTR-1/IFF.

2. On which class of taxpayers is Form DRC-01B applicable?

Regular taxpayers (including SEZ units and SEZ developers), casual taxpayers, and taxpayers who have opted in or out of the composition scheme are all eligible to use Form DRC-01B.

3. I have not filed the Form DRC-01B for the previous Tax period. Can I still file GSTR1/IFF for the current Tax period?

You would be unable to file GSTR-1/IFF for the future period if you have not filed Form DRC-01B Part B for any period for which you got an intimation in Form DRC-01B Part A. To avoid any disruptions in the filing of GSTR-1/IFF, Form DRC-01B Part B must be filed on time.

4. How will I be intimated that I have to submit reply in Form DRC-01B Part B?

Once the intimation in Form DRC-01B Part A is generated, a Reference Number will be assigned. You will receive the intimation via email and SMS, which will include the Reference Number. Please ensure to check both your email and mobile messages for the intimation and keep the Reference Number handy for future reference and correspondence.

Note: You can also check this intimation on GST Portal. Navigate to Services > Returns > Return Compliance > Liability Mismatch DRC-01B.

5. Can Form DRC-01B Part B be filed monthly or quarterly?

Form DRC-01B will be created for quarterly filers (QRMP) after filing the quarterly GSTR-3B. Monthly filers, on the other hand, would have Form DRC-01B created after filing the monthly GSTR-3B. As a result, depending on the frequency of submitting GSTR-3B, Form DRC-01B Part B might be filed monthly or quarterly.

6. After filing the reply for DRC-01B Part B, how much time will it take to unblock the form GSTR-1/IFF? When will I be able to file GSTR-1/IFF?

After filing the DRC-01B Part B reply, you can immediately file GSTR-1/IFF. If you have any problems when submitting GSTR-1/IFF, you must log out and come back in after a few minutes.

7. While entering the ARN for filing the reply for DRC-01B Part B, I am getting an error message stating that ‘Please provide valid ARN of DRC-03’. Why am I getting this error message?

If you encounter an error message while entering the ARN to file the reply for DRC-01B Part B,
please check the following points:

• Ensure that the ARN is valid and corresponds to the same DRC-03 and GSTIN.
• The DRC-03 should have been filed on or after the date when DRC-01B Part A was issued.
• Confirm that the cause of payment specified in the DRC-03 is “Liability mismatch – GSTR1 to GSTR-3B.”
• The overall tax period should align with the period for which DRC-01B Part A was issued.
  • For monthly filers, the period should be the same, including both the “From” and “To” dates.
  • For quarterly filers, it should cover at least one month within the quarter.

8. How can I deselect any reason for the payment difference, after providing the details for the reason selected earlier?

If you uncheck any reasons for difference after supplying the details, the system will show an error notice demanding that the previously supplied details be deleted. So, after erasing the data supplied for the previously chosen reason, you will be able to deselect it.

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