DRC 01B under GST is an intimation of difference in Tax liability to the taxpayer. Thus, DRC 01B will consist of the difference in Tax liability reported in GSTR 1 and GSTR 3B returns. The GSTN has made now it mandatory to submit the information online in case there is a difference between the tax liability reported in GSTR 1 and GSTR 3B returns. The taxpayer will not be able to file the next GSTR 1 return if he/she has did file the DRC 01 intimation for the previous period.
There may be various reasons from the taxpayer’s end for reporting the tax liability, which may differ from GSTR 1 and GSTR 3B declaration. Thus, it does not mean that both returns’ liabilities must match. Thus, now GSTN wants the reason from the taxpayer as to why there is a difference between these two reasons.
GST Ruling for DRC 01B Intimation
CGST Rule 88C deals with the rules for submitting the reply to the form DRC 01B. According to the rule, the taxpayer will receive an intimation in Form DRC 01 through email and SMS. If the taxpayer receives such intimation he/she needs to take the following actions:
- Pay the differential tax liability, along with interest under section 50, through FORM GST DRC-03.
- Explain/Provide reasons for the difference between GSTR 1 and GSTR 3B on the common portal
The above actions must be taken by the taxpayer within 7 days from the receipt of the above intimation. in case the taxpayer fails to take action, the department may initiate the recovery as per provisions of section 79. Also, the taxpayer will not be able to file further returns until the above actions do not get completed.
DRC 01B Format
Below is the offline format of DRC 01B in pdf. You may download it for your reference. Please note that you cannot use the format to fill out your reply and submit it. To submit your response you must use the online submission utility. The format is as per Rule 88C of CGST.
How to File DRC 01B?
The DRC 01B form contains Part A and Part B. The taxpayer needs to fill only part B and submit it. here are the steps to fill out and submit your Part B.
Time needed: 15 minutes
- Visit the GST portal at www.gst.gov.in and login
- Go to Services > Returns > Return Compliance option.
- Click on Liability Mismatch (DRC-01B) Tile
After clicking The system will show all pending records that need to be completed
- Click on the Reference number
- Fill in the appropriate details at Points 1 Or/And 2
Here you can fill in Point 1 if you have paid the difference. Also, you can fill in at point 2, for any other details if. If there is no liability you may only fill in point no. 2
- Accept the declaration and Click on the “File GSTR DRC 01B” button.