Form DRC-01B

In December 2022, the Government of India introduced Rule 88C to the Central Goods and Services Tax (CGST) Rules, 2017. Rule 88C allows automated notifications to be sent to taxpayers if there is any mismatch between their GSTR-1/IFF and GSTR-3B. Notifications will be sent when the tax liability furnished in the GSTR-1/IFF exceeds the tax paid in the GSTR-3B by a defined threshold amount and percentage.

The taxpayer has to pay the differential tax liability, along with interest under Section 50, by using Form GST DRC-03, or taxpayers have to explain the differences in the tax payable within seven days. Regardless of the action, taxpayers must reply to the notification using Part B of Form GST DRC-01B.

Filing Form DRC-01B Part B

To file Form DRC-01B Part B:

Click Return Comoliance under Returns

(or)

Click View below Liability Mismatch (DRC-01B) Click the required acknowledgement number to view its details

Insight: You can also select from the Reference number, Return period, or Status options at the top and search for the acknowledgement number.

Reference Number

If you select Reference number, enter the ARN and click Search.

Search for ARN using the reference number

If the status of the record is Pending, you can file Form DRC-01B.

Return Period

If you select Return period:

Search for ARN using the return period

Status

If you select Status, select either Pending or Completed as the status and click Search.

Search for ARN using the status

The Form DRC-01B for the ARN entered will be displayed. It contains two parts: Part A and Part B.

Part A contains the Intimation of Difference in Liability Reported in Statement of Outward Supplies and that Reported in Return details.

Part B contains the Reply by Taxpayer in Respect of the Intimation of Difference in Liability details. it is further divided into two sub-parts. In subpart 1, you can make payment for the Difference in Liability Repor****ted. In subpart 2, you can select a Reason for the Difference in Liability Reported and provide further explanation for the same.

As a taxpayer, you’ll have to make a payment for the Difference in Liability Reported or select a Reason for the Difference in Liability Reported and provide further explanation for the same in Part B.

Make Payment for the Difference in Liability Reported

To make payment for the difference in liability reported:

Enter the ARN and click Validate

The summary of the payment details that have been paid through DRC-03 towards the difference in liability reported will be displayed.

List of ARNs for which you've paid the difference Click 'Click Here for DRC-03' to pay for the ARN

Select the Reason for the Difference in Liability Reported

To select a reason for the difference in liability reported:

Select a reason and enter the details Agree to the terms and conditions and fill in the required details Choose the filing method

Note: If you don’t receive the OTP within 30 seconds, you can click Resend OTP to get a new OTP. You can request a new OTP up to 3 times.

Enter the OTP and click Verify

You have filed your reply to the DRC-01B Part A notification. You can check the status from the Status option.

To know more about Form DRC-01B, read our FAQs on Form DRC-01B.

Warning: If you don’t respond in Form GST DRC-01B within 7 days from the date on which you received the notification, then your GSTR-1/IFF will be blocked for the subsequent tax periods. This will continue until you either deposit the amounts specified in the notification or provide an explanation for non-payment.


Was this document helpful?
Yes
No
Thank you for your feedback!
Want a feature?
Suggest
Switch to smart accounting software. Switch to Zoho Books.   Start my free 14-day trial Explore Demo Account

Books

Simplify accounting
and GST filing.