In December 2022, the Government of India introduced Rule 88C to the Central Goods and Services Tax (CGST) Rules, 2017. This rule allows automated notifications to be sent to taxpayers if there is any mismatch between their GSTR-1/IFF and GSTR-3B. These notifications will be sent when the tax liability in GSTR-1/IFF exceeds a specified threshold amount and percentage compared to the tax paid in GSTR-3B.
The taxpayer must pay the differential tax liability, along with interest under Section 50, by using Form GST DRC-03, or they have to explain the differences in the tax payable within seven days. Irrespective of the action taken, taxpayers will need to reply to the notification using Part B of Form GST DRC-01B.
and GST filing.