The famous quote ‘Change is the only Constant’ is firmly adopted under Goods and Services Tax (GST). Yes, despite crossing more than six years, new amendments are still frequently introduced under GST. One of the most recent ones is the new functionality in form GST DRC-01B.
As we know, liability declared via GSTR-1/ Invoice Furnishing Facility (IFF) should be the same as that declared and paid via GSTR-3B. However, in case there is any difference between the same, then, the taxable person will have to deal with new functionality in form GST DRC-01B.The present article briefly explains the statutory provision relating to Form GST DRC-01B, the filing of Part B of Form GST DRC-01B, and the understanding of Part A and Part B of Form GST DRC-01B.
Statutory provisions relating to form GST DRC-01B
New rule 88C was inserted into the Central Goods and Services Tax Rules, 2017 vide notification no. 26/2022- Central Tax dated 26th December 2022. Rule 88C of the Central Goods and Services Tax Rules, 2017 states as under
- Issuance of intimation in Part A of form GST DRC-01B-
Intimation in Part A of form GST DRC-01B will be issued when the tax payable by the registered person as per form GSTR-1 or Invoice Furnishing Facility (IFF) exceeds the amount of tax paid via form GSTR-3B.
- Manner of communication of intimation in Part A of form GST DRC-01B –
Intimation in Part A of form GST DRC-01B will be communicated to the registered person via the common portal and also via the registered e-mail address.
- Action to be taken by the registered person as and when intimation in Part A of form GST DRC-01B is received –
The registered person is required to take any of the following actions
Make payment of the differential tax liability as specified in Part A of form GST DRC-01B
Notably, in case the differential tax liability is not paid, Part B of form GST DRC-01B also provides an option to make payment by clicking ‘CLICK HERE FOR DRC-03’.
Furnish adequate reply for differential tax liability which remained unpaid
The reason for the amount of differential tax liability (either fully or partially) which is not paid by the registered person needs to be explained.
- Consequences to be faced by the registered person –
If the registered person fails to respond via Part B of form GST DRC-01B, then, form GSTR-1/ IFF for the subsequent tax periods will be blocked.
Filing of Part B of form GST DRC-01B
As seen above, from GST DRC-01B is divided into two parts i.e. Part A covers the intimation and via Part B the reply is to be furnished by the registered person.
To file Part B of form GST DRC-01B, the registered person needs to follow the below-mentioned steps –
STEP 1 – Visit www.gst.gov.in and enter appropriate login credentials;
STEP 2 – Navigate the following path –
Services > Returns > Return Compliance
STEP 3 – Click ‘View’ under ‘Liability Mismatch (DRC-01B)’;
STEP 4 – Click ‘Reference Number’;
STEP 5 – Click ‘SEARCH’;
STEP 6 – Part A and Part B of form DRC-01B will be displayed.
Understanding Part A and Part B of form GST DRC-01B
Part A of GST DRC-01B covers the intimation of the difference in liability reported in Statement of Outward supplies in GST (GSTR-1) and that reported in Return (GSTR-3B). Notably, Part A is auto-generated and the registered person cannot make any amendment to the same. Mainly, Part A provides the difference in liability in table format highlighted herein below –
Coming to Part B of form DRC-01B, it covers a reply by the registered person in respect of the intimation of difference in liability. Part B consists of the following –
- Paid the difference amount through DRC-03; and/ or
- Select and explain the reason for the difference –
- Excess Liability paid in earlier tax periods in GSTR-3B;
- Form GSTR-1 or IFF in GST filed with interest details and will be amended in the next tax period;
- Some transactions of earlier tax period which could not be declared in GSTR-1 / IFF of the said tax period but tax has already been paid in GSTR-3B of the said tax period and which has now been declared in GSTR-1 / IFF of the tax period under consideration;
- Mistake in reporting of advances received and adjusted against invoices;
- Any other reason.
Based on acceptance/ non-acceptance of the difference in liability, the registered person will have to furnish details in Part B. The same is explained hereunder –
Manner of furnishing details in Part B of Form DRC-01B
The registered person accepts the difference in liability and has paid the difference amount via DRC-03
Registered person will be required to provide an ARN of DRC-03 and validate the same.
The registered person accepts the difference in liability, however, payment of the difference amount via DRC-03 is pending
Registered person will have to make the payment by clicking the ‘CLICK HERE FOR DRC-03’ option.
The registered person doesn’t accept the difference in liability
Registered person will have to click the applicable reason box and explain the reason for the difference in liability.
The registered person partly accepts the difference in liability and partly doesn’t accept the difference in liability
Registered person will have to provide details of the amount paid by furnishing ARN of DRC-03 or make payment of accepted liability by clicking the ‘CLICK HERE FOR DRC-03’ option.
Further, for the amount not accepted, the registered person will have to click the applicable reason box and explain the reason for the difference in liability.
- Intimation in form GST DRC-01B will be issued only when there is difference in liability between Form GSTR-1 and Form GSTR-3B;
- Intimation will be covered in Part A of DRC-01B, whereas, reply is to be furnished by the registered person via Part B of DRC-01B;
- It is mandatory to furnish reply as and when intimation in DRC-01B is received;
- In case the reply is not furnished, Form GSTR-1 or IFF of the subsequent tax period will be blocked.
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