GST Manual- File Returns
FAQs
About – Return Compliance in Form DRC-01C (Intimation of difference in ITC available and ITC claimed)
1. When is Form GST DRC-01C required to be filed?
The system checks the difference between the ITC available as per Form GSTR-2B and ITC claimed in Form GSTR-3B/3BQ for each return period. If the ITC available in Form GSTR-2B exceeds the ITC claimed in Form GSTR-3B/3BQ by a pre-defined limit for a return period or the percentage difference between the ITC available as per Form GSTR-2B exceeds by a predefined percentage from the ITC claimed in Form GSTR-3B for a return period, an intimation is sent to you.
Once you receive an intimation in Form GST DRC-01C , i.e., if there is a difference between the ITC available in Form GSTR-2B and that claimed through Form GSTR-3B/3BQ beyond the threshold, you need to submit a reply in Form GST DRC-01C Part B.
Note: If a taxpayer doesn’t file response to Form GST DRC-01C for previous tax period, then for the subsequent tax period, they will not be able to file their Form GSTR-1/IFF.
2. For which class of taxpayers is Form GST DRC-01C applicable?
Form GST DRC-01C is applicable to various types of taxpayers, including regular taxpayers (including SEZ units and SEZ developers), casual taxpayers, and taxpayers who have opted out of the composition scheme.
3. I have not filed the Form GST DRC-01C for the previous Tax period. Can I still file GSTR-1/IFF for the current Tax period?
If you have not filed Form GST DRC-01C Part B for any period for which you received an intimation in Form GST DRC-01C Part A, you will not be able to file GSTR-1/IFF for the subsequent period. It is important to ensure timely filing of Form GST DRC-01C Part B to avoid any interruptions in the filing of GSTR-1/IFF.
4. How will I be intimated that I have to submit reply in Form GST DRC-01C Part B?
Once the intimation in Form GST DRC-01C Part A is generated, a Reference Number will be assigned. You will receive the intimation via email and SMS, which will include the Reference Number. Please ensure to check both your email and mobile messages for the intimation and keep the Reference Number handy for future reference and correspondence.
Note: You can also check this intimation on GST Portal. Navigate to Services > Returns > Return Compliance > ITC Mismatch DRC-01C.
5. Is Form GST DRC-01C Part B required to be filed monthly or quarterly?
For quarterly filers (QRMP), Form GST DRC-01C will be generated, if applicable, after filing the quarterly Form GSTR-3B. On the other hand, for monthly filers, Form GST DRC-01C will be generated on a monthly basis after filing the monthly Form GSTR-3B. Therefore, Form GST DRC-01C Part B can be filed either on a monthly or quarterly basis, depending on the frequency of filing Form GSTR-3B.
6. After filing the reply for Form GST DRC-01C Part B, how much time will it take to unblock the Form GSTR-1/IFF? When will I be able to file GSTR-1/IFF?
After filing the reply for Form GST DRC-01C Part B, you can instantly file GSTR-1/IFF. If you are facing any issue while filing GSTR-1/IFF, then you need to log out and log in again after a few minutes.
7. While entering the ARN for filing the reply for Form GST DRC-01C Part B, I am getting an error message stating that ‘Please provide valid ARN of DRC-03’. Why am I getting this error message?
If you encounter an error message while entering the ARN to file the reply for Form GST DRC-01C Part B, please check the following points:
a. Ensure that the ARN is valid and corresponds to the same Form GST DRC-03 and GSTIN.
b. The Form GST DRC-03 should have been filed on or after the date when Form GST DRC-01C Part A was issued.
c. Confirm that the cause of payment specified in the Form GST DRC-03 is “ITC Mismatch- GSTR 2A/2B to GSTR-3B.”
d. The overall tax period should align with the period for which Form GST DRC-01C Part A was issued.
• For monthly filers, the period should be the same, including both the “From” and “To” dates.
• For quarterly filers, it should cover at least one month within the quarter.
8. How can I deselect any reason for the payment difference, after providing the details for the reason selected earlier?
If you deselect any reasons for difference after providing the details, the system will display an error message, requesting for deletion of details already provided. So, after deleting the details entered for the reason selected earlier, you will be able to deselect that reason.
9. How to view and download the filed Form GST DRC-01C?
To view filed Form GST DRC-01C navigate to Returns > Return Compliance > ITC Mismatch (DRC-01C), select the radio button for Status. Select Completed from drop-down list and click the SEARCH button. Click the Reference number hyperlink for the order you want to view or download. The completed form will be displayed. Click the DOWNLOAD DRC-01C button to download the final PDF of Form DRC-01C.