Advisory for Online Compliance Pertaining to ITC mismatch -GST DRC-01C

GSTN has released a new advisory. Please read the details below :

Discrepancy between the Input Tax Credit (ITC) in GSTR-2B and the ITC claimed in GSTR-3B.

1. GSTN has introduced an automated feature in Form GST DRC-01C on the GST portal. This allows taxpayers to clarify variations between Input tax credit in GSTR-2B statement and GSTR-3B return online, in accordance with GST Council directives.

2. This feature compares ITC declared in GSTR-3B/3BQ with ITC available in GSTR-2B/2BQ for each return period. If claimed ITC in GSTR-3B exceeds the available ITC in GSTR-2B beyond a set limit or a configurable percentage difference, taxpayers receive an intimation in DRC-01C.

3. Upon receiving the intimation, taxpayers must respond using Form DRC-01C Part B. They can either detail the payment made via Form DRC-03 to settle the difference or provide an explanation or a combination of both options.

4. If impacted taxpayers fail to file a response in Form DRC-01C Part B, they won’t be able to submit GSTR-1/IFF for subsequent periods.

The advisory can be accessed on the GSTN portal – https://www.gst.gov.in/newsandupdates/read/614

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