Compliance Pertaining to DRC-01C

ITC from GSTR-2B/2BQ with claimed ITC from GSTR-3B/3BQ for each period and If claimed ITC exceeds ITC available as per GSTR-2B by predefined limits, the taxpayer receives an intimation in Form DRC-01C.

Compliance Pertaining to DRC-01C

How to dealt with Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-3B

The government introduced Rule 88D in CGST Rule, 2017 to address the difference between input tax credit in GSTR-2B and GSTR-3B. As per News and Updates dated 6th Oct 2023, this functionality is now operating on the GST portal. The system matches ITC from GSTR-2B/2BQ with claimed ITC from GSTR-3B/3BQ for each period and If claimed ITC exceeds ITC available as per GSTR-2B by predefined limits, the taxpayer receives an intimation in Form DRC-01C. The taxpayer must file a response using Form DRC-01C Part B, providing payment details using Form DRC-03 and/or an explanation for the difference. If no response is filed, taxpayers cannot file subsequent period GSTR-1/IFF. 

The GST portal offers a detailed manual with step-by-step instructions and addresses various scenarios.

Share the Post:

Related Posts

GST on Electricity

GST on Electricity

Explore the potential impact of bringing electricity under Goods and Services Tax (GST) in India. Discover how this move could benefit industries, reshape state revenues, and influence household electricity bills. Dive into the complexities of this proposed reform and its implications for various stakeholders.

Read More