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Home > News > GST Last Updated: Oct 06th 2023

Advisory on Implementation of DRC-01C Compliance

GSTN issued an advisory regarding the Implementation of DRC-01C Compliance, which refers to the discrepancy between Input Tax Credit (ITC) available in GSTR-2B and ITC claimed in GSTR-R3.

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The advisory note includes

  1. In Notification No. 38/2023 - Central Tax dated August 4, 2023, the government included Rule 88D in the CGST Rule, 2017 regarding the difference between ITC available in GSTR-2B and ITC available in GSTR-3B, as per GSTN. On the GST portal, this feature pertaining to this provision is currently operational.
  2. Note also states that the system now examines the ITC available under GSTR-2B/2BQ with the ITC claimed under GSTR-3B/3BQ for each return period. If the claimed ITC exceeds the ITC provided under GSTR-2B by predetermined limits, as directed by the competent authorities, the assessee will be notified through Form DRC-01C.
  3. After receiving the information, the taxpayer is required to file a response using Form DRC-01C Part B. The taxpayer has the option of filing Form DRC-03 with details of the payment made to resolve the difference, Form DRC-03 with an explanation for the difference using the options provided, or Form DRC-03 with a combination of both.
  4. It also states that if affected taxpayers fail to submit a response on Form DRC-01C Part B, they will be unable to file their GSTR-1/IFF for the subsequent period.

Source(s):, Team

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Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.