In numerous instances as of late, the input tax credit claimed on Form GSTR 3B exceeds the amount claimed on Form GSTR 2B. CBIC created rule 88D to resolve GSTR 3B and GSTR 2B anomalies through form DRC-01. Learn about submission, applicability, responses, reasons. The implementation of this feature has commenced on the GST portal.
This document covers
- Intimation through form DRC-01
- Submission of response in Form DRC-01 Part B
- Consequences of non-submission of response
- Applicability of DRC-01
- How to file response in form DRC-01 Part B?
- Reasons available in DRC-01 Part B for mismatch in ITC
1. Intimation through form DRC-01
Now the GST system compares the ITC available as per GSTR 2B with ITC availed as per GSTR 3B for each return period and issues the intimation to taxpayer if the claimed ITC exceeds the predefined limits in Form DRC-01.
2. Submission of response in Form DRC-01 Part B
The taxpayers need to furnish the response in DRC-01 Part B after receiving the intimation. The taxpayer can either provide details of
- Payment made to settle the difference using form DRC 03 or
- Provide an explanation for the difference out of the options provided in the form or
- Even choose a combination of both options and file it
3. Consequences of non-submission of response
If the taxpayer has not filed any response within due date , such taxpayers cannot file GSTR 1/IFF for the next return period.
4. Applicability of DRC-01
DRC-01C is applicable to the following taxpayers
- Regular taxpayers (Including SEZ units and developers)
- Casual taxpayers
- Taxpayers who have opted out of composition scheme
5. How to file response in form DRC-01 Part B?
- Login to gst.gov.in with your credentials
- Go to Services >> Returns >> Return Compliance option
- Click on View ITC mismatch (DRC-01C) tile
- Click on the hyperlink (reference number) on the page displayed
- The ITC mismatch details page with Part A and Part B will be displayed.
- Part A will show the difference in ITC available in auto generated statement containing the details of ITC available and availed
- Part B will have the reply by taxpayer in respect of intimation of difference in input tax credit
6. Reasons available in DRC-01 Part B for mismatch in ITC
- Input tax credit not availed in earlier tax periods
- Input tax credit not availed in earlier tax periods inadvertently or due to mistake or omission.
- ITC available on account of import of goods is not reflected in form GSTR 2B.
- ITC available on account of inward supplies from SEZ is not reflected in form GSTR 2B.
- Excess reversal of ITC in previous tax periods; the same being reclaimed in the current tax period.
- Recredit of ITC on payment made to supplier, in respect of ITC reversed as per rule 37 in earlier tax period.
- Recredit of ITC on filing of return by supplier, in respect of ITC reversed as per rule 37 in earlier tax period.
- Form GSTR 3B filed with the incorrect details will be amended in next tax period (including typographical errors, wrong rates of taxes etc).
- Any other reasons.