New feature on GST portal – Form GST DRC-01C

The GST portal has recently introduced a new feature for filing of online compliance pertaining to ITC mismatch in form GST DRC-01C.

As per the said advisory, it is to be noted that GSTN has developed a functionality to generate automated intimation in Form GST DRC-01C which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B statement & ITC claimed in GSTR-3B. This feature is now live on the GST portal.

This functionality compares the ITC declared in GSTR-3B with the ITC available in GSTR-2B for each return period. If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a predefined limit or the percentage difference exceeds the configurable threshold, the taxpayer will receive an intimation in the form of GST DRC-01C.

Upon receiving the intimation, the taxpayer must file a response using Form DRC-01C – Part B. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both options. In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such taxpayers will not be able to file their subsequent period GSTR-1/IFF.