{"id":57686,"date":"2025-01-06T15:48:23","date_gmt":"2025-01-06T10:18:23","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=57686"},"modified":"2025-01-06T15:48:28","modified_gmt":"2025-01-06T10:18:28","slug":"form-drc-01b-in-gst","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/form-drc-01b-in-gst\/","title":{"rendered":"Form DRC-01B in GST"},"content":{"rendered":"\n
The Goods and Services Tax (GST) regime in India has transformed the indirect taxation system of India and aimed at simplifying indirect taxation <\/a>and improving compliance. However, due to the nature of returns and reconciliations, it can lead to discrepancies in reported data. To avoid this, the GST framework incorporates measures to identify and address mismatches; one is Form DRC-01B.<\/p>\n\n\n\n In this blog, we will discuss the basics of Form DRC-01B in GST, <\/strong>a demand notice, along with how to reply to an intimation of difference and other important aspects associated with it.<\/p>\n\n\n\n The Government of India introduced Rule 88C to the CGST or Central Goods and Services Tax Rules, 2017. It allows the sending of automatic intimations to taxpayers for any kind of discrepancies or mismatches between the Form GSTR-3B returns and GSTR-1\/IFF. These will be typically sent when the tax liability <\/a>that has been furnished in Form GSTR-1\/IFF is more than the tax liability details in Form GSTR-3B by a set percentage and amount.<\/p>\n\n\n\n The GST-registered taxpayer can pay the difference amount under Section 50 along with interest with Form GST DRC-03. The taxpayer can also provide reasons for the differential amount in the tax payable within 7 days. No matter what action the taxpayer takes, it is mandatory for him to reply to the intimation within Part B of the GST DRC-01B notice.<\/p>\n\n\n\n In case the taxpayer can not reply, this will end up blocking GSTR-1\/IFF for the subsequent tax periods. This will be continued till the taxpayer provides a satisfactory explanation for non-payment or deposits the amount that was in the intimation.<\/p>\n\n\n\n Follow the detailed step-by-step process to reply to the intimation in Form DRC-01B:<\/p>\n\n\n\n \u25cf\u00a0Step 1: <\/strong>Sign in to the common portal of GST with your valid user credentials.<\/p>\n\n\n\n \u25cf\u00a0\u00a0Step 2: <\/strong>Go to the ‘Services’ section, then ‘Returns’ and navigate to ‘Return Compliance’. You can either follow this or tap on the ‘Return Compliance’ link that is present on the dashboard.<\/p>\n\n\n\n \u25cf\u00a0Step 3:<\/strong> Once the screen displays the ‘Return Compliance’ page, tap on the ‘View’ option that is present under the Liability Mismatch (DRC-01B)’.<\/p>\n\n\n\n \u25cf\u00a0Step 4:<\/strong> Then, the screen will display the records for pending actions.<\/p>\n\n\n\n \u25cf\u00a0Step 5<\/strong>: Tap on the reference number hyperlink on the page of ‘Liability Mismatch (DRC-01B)’.\u00a0It is important to remember that if the screen displays multiple reference numbers, you may tap on any one option between ‘Return Period’, ‘Reference Number’ or ‘Status’. You can search for your issued intimation by clicking on any one of these options.<\/p>\n\n\n\n There are two parts of \u2018Liability Mismatch (DRC-01B)\u2019 \u2013 Part and Part B. Part A is the \u2018Intimation of Difference in Liability Reported in Statement of Outward Supplies<\/a> and that Reported in Return\u2019.\u00a0 Part B is the \u2018Reply by Taxpayer in Respect of the Intimation of Difference in Liability\u2019. To download Form DRC-01B\u2013 Part A, tap on download for the PDF to be generated.\u00a0<\/p>\n\n\n\n Part B has two subparts. Provide the Application Reference Number (ARN) in the sub-part-1 of the payment that you have made through Form DRC-03 for the tax period in which the issuance of Form DRC-01B was done. Upon entering the value, you can tap on ‘Validate’. The screen will now display all the payment details that have been made for the differential amount through Form DRC-03.<\/p>\n\n\n\n \u25cf\u00a0Step 6<\/strong>: If the payment has not been made yet, you can tap on ‘Click Here for DRC-03’ to do the same.<\/p>\n\n\n\n \u25cf\u00a0Step 7:<\/strong> In sub-part 3, you can choose the reason for the difference in liability reported by tapping on the checkbox, and providing explanations in the available text box. If the reason is not given, you can choose \u201cAny other reason\u201d and explain within 500 characters.<\/p>\n\n\n\n \u25cf\u00a0Step 8<\/strong>: Once you have entered all the relevant details, tap on ‘Save’.<\/p>\n\n\n\n \u25cf Step 9:<\/strong> Consider previewing the DRC-01B before you file.<\/p>\n\n\n\n \u25cf\u00a0Step 10:<\/strong> Tick the relevant checkbox which is present at the bottom of the page. Enter the place and\u00a0name of the authorised signatory from the drop-down list.<\/p>\n\n\n\n \u25cf\u00a0Step 11<\/strong>: Tap on ‘File GST DRC-01B’.<\/p>\n\n\n\n \u25cf Step 12:<\/strong> The screen will display a warning message. Tap on the ‘Proceed’ option.<\/p>\n\n\n\n \u25cf\u00a0Step 13:<\/strong> You can proceed to file with digital signatures<\/a> like DSC or EVC by tapping on either the ‘File DRC-01B with DSC’ option or the ‘File DRC-01B with EVC’ option.<\/p>\n\n\n\n \u25cf\u00a0Step 14<\/strong>: You can now go to ‘Status’ and check the status of DRC-1B.<\/p>\n\n\n\n The screen will now display a completed form.<\/p>\n\n\n\nWhat Is Form DRC-01B?<\/strong><\/h2>\n\n\n\n

How to Reply to the Intimation in Form DRC-01B?<\/strong><\/h2>\n\n\n\n
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