DRC 01B and DRC 01C in GST!

What is DRC-01 in GST?

DRC-01 means Demand and Recovery Certificate- 01. Rule 142 of the CGST Rules, 2017 deals with Demands and Recovery. As per the said rule, a summary of the notice under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, should be issued electronically FORM GST DRC-01.

Also, as per rule 100 of the CGST Rules, 2017, the proper officer shall issue a notice to a taxable person in accordance with the provisions of section 63 containing the grounds on which the assessment is proposed to be made on the best judgment basis and shall also serve a summary thereof electronically in FORM GST DRC-01.

What is DRC-01B in GST?

If there is a difference between the liability declared in GSTR-1/IFF and the amount paid through GSTR3B /3BQ that exceeds a pre-defined limit, you will receive an intimation in Form DRC-01B.

Once you receive an intimation in Form DRC-01B, i.e., if there is a difference between the liability declared in GSTR-1/IFF and that paid through GSTR-3B/3BQ beyond the configurable threshold limit, you need to submit your reply in Form DRC-01B Part B.

What is DRC-01C in GST?

If there is a difference between the ITC available as per GSTR-2B and ITC claimed in GSTR-3B /3BQ that exceeds a pre-defined limit, you will receive an intimation in Form DRC-01C.

Once you receive an intimation in Form DRC-01C, you need to submit your reply in Form DRC-01C Part B.

How to check DRC-01B and DRC-01C on the portal and How to reply to the notices?

• Go to www.gst.gov.in and login using valid credentials.
• Go to Services>>Returns>>Return Compliance

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• There will be 2 tabs- DRC 01B and DRC 01C

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• Click VIEW button. The following screen will be displayed. You can search the notice by Reference number, Return period or status- pending or completed. Click the Reference number hyperlink.

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• Details page with PART-A and PART-B will be displayed. PART-A will display the estimation of the difference. In PART-B, a Reply by the Taxpayer in respect of the intimation of difference is to be provided.

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• Select the reasons, enter remarks, upload relevant documents, save, preview the form, and file the form using DSC or EVC.

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Conclusion

In conclusion, DRC-01B and DRC-01C notices play a crucial role in addressing discrepancies in GST filings. Understanding these notices and promptly responding to them is essential for compliance with GST regulations and avoiding penalties. Be sure to regularly check for such notices on the GST portal and take appropriate action as required.

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