All About DRC-01B Form for GST Liability Mismatch B/W Forms

The Goods and Services Tax Network (GSTN) recently released an upgrade that allows taxpayers to explain the difference in GST liability between their GSTR-1 and GSTR-3B returns online via the DRC-01B form. The GST Council directed this change, which intends to simplify compliance procedures for taxpayers. This article gives an overview of the functionality and details the procedures taxpayers must take to remedy the liability discrepancy using Form DRC-01B.

Latest Update

13th July 2023

• The GST department scheduled the webinar on ‘DRC-01B online functionality for liability mismatch.

GST Liability Difference via DRC-01B Form

GSTNs new functionality executed would distinguish the liability represented in GSTR-1 or IFF (Invoice Furnishing Facility) from the liability paid in GSTR-3B or 3BQ for each return period. When the declared liability would surpass the paid liability through the stated limit or the percentage difference would exceed the configurable limit, the assessee shall obtain the intimation in the form of DRC-01B.

The assessee on obtaining the intimation would need to file an answer in Form DRC-01B Part B giving a clarification via a reason chosen from the automated dropdown. When the reason for the discrepancy would not be available in the dropdown then the assessee should be needed to submit the crucial information in a manual way.

GSTN has published detailed documentation on the GST portal to assist taxpayers in efficiently using its features. This manual includes step-by-step instructions, navigation details, and scenarios for the capability. It is strongly advised that the assessee consult the guidebook for a better knowledge of the procedure and to ensure compliance.

Closure- GSTN’s new functionality provides a simplified and streamlined method for taxpayers to explain the distinction in liability between their GSTR-1 and GSTR-3B returns online. Important clarifications and information for the difference can be obtained by filing the reply in Form DRC-01B, which ensures GST regulations compliance. The GST portal’s thorough manual is available, which makes it much simpler to understand and use the capabilities. Utilizing this feature and following the rules is crucial for taxpayers to maintain efficient GST compliance processes.

Advisory for Online GST Liability Difference via DRC-01B Form

Dear Taxpayers,

• GSTN has made a function that enables the assessee to elaborate on the difference between GSTR-1 & 3B return online as directed by the GST Council. On the GST portal, the same feature is live.
• For each return period, the functionality compares the obligation stated in GSTR-1/IFF with the liability paid in GSTR-3B/3BQ. When the shown liability would surpass the paid liability through the specified limit or the percentage difference would surpass the configurable limit then the assessee shall obtain the intimation in the form of DRC-01B.
• The assessee should submit an answer in Form DRC-01B Part B on obtaining the intimation given that the clarification via reason in the automated dropdown and the information for the discrepancy when not comprised in the dropdown.
• A thorough manual with navigational instructions is accessible on the GST portal to assist the taxpayer even more with the functionality. It discusses many scenarios relating to the feature and provides step-by-step directions.

Tutorial Guide for DRC-01B Form Under GST