Functionality to Issue Intimation under Form DRC-01C has been Implemented on the GSTN Portal

GSTN Advisory dated, 06-10-2023

GSTN (Goods and Services Tax Network) has issued an advisory regarding intimation issued under Form GST DRC-01C, which deals with discrepancies between ITC available in GSTR-2B and the ITC claimed in GSTR-3B. This compliance functionality has been implemented on the GSTN Portal, and the system will now compare the ITC available in GSTR-2B with the ITC claimed in GSTR-3B for each return period. Where monthly return is required to be filed, comparison whould be done on monthly basis and for QRMP returns, the comparison would be done on quarterly basis.

In accordance with Rule 88D of the CGST Rules 2017, if the ITC available in GSTR-2B exceeds a predefined limit in comparison to the ITC claimed in Form GSTR-3B/3BQ for a specific return period, or if the percentage difference between the ITC available as per GSTR-1 exceeds the predefined limits in relation to the ITC claimed in Form GSTR-3B for a return period, an intimation would be sent to the taxpayer. The taxpayer is required to respond to this notification in Part B of Form DRC-01C.

The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03 or provide an explanation for the difference out of the options provided in the form or even choose a combination of both options and file it. It’s important to note that if a taxpayer fails to respond to Form GST DRC-01C for the previous tax period, they will not be able to file their Form GSTR-1/IFF for the subsequent tax period.

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