FAQs on Return Compliance for the Form DRC-01B Part B

In the GST return filing process, maintaining consistency between reported liabilities and actual tax payments is crucial for compliance. To streamline this verification, the GSTN system automatically compares the liabilities declared in GSTR-1/IFF with those paid in GSTR-3B/3BQ. When discrepancies exceed predefined thresholds, taxpayers receive an intimation in Form GST DRC-01B. 

This blog answers frequently asked questions (FAQs) around Form GST DRC-01B Part B, explaining when it’s required, who it applies to, and how to respond effectively to avoid disruptions in filing future returns.

FAQs > Return Compliance for the Form DRC-01B Part B

1. When is Form GST DRC-01B required to be filed?

The system checks the difference between the liability declared in form GSTR-1/IFF and the liability paid in Form GSTR-3B/3BQ for each return period. If the liability declared inGSTR-1 exceeds the liability paid in Form GSTR-3B by a pre-defined limit for a return period or the percentage difference between the liabilities declared in GSTR-1 exceeds the configurable percentage threshold from the liability paid in Form GSTR-3B for a return period, an intimation is sent to you. Once you receive an intimation in Form GST DRC-01B, i.e., if there is a difference between the liability declared in GSTR-1/IFF and that paid through Form GSTR-3B/3BQ beyond the configurable threshold limit, you need to submit your reply in Form GST DRC-01B Part B.

Note: If a taxpayer doesn’t file response to Form GST DRC-01B for previous tax period, then for the subsequent tax period, they will not be able to file their Form GSTR-1/IFF.

2. For which class of taxpayers is Form GST DRC-01B applicable?

Form GST DRC-01B is applicable to various types of taxpayers, including regular taxpayers (including SEZ units and SEZ developers), casual taxpayers, and taxpayers who have opted in or opted out of the composition scheme. 

3. I have not filed the Form GST DRC-01B for the previous Tax period. Can I still file GSTR-1/IFF for the current Tax period? 

If you have not filed Form GST DRC-01B Part B for any period for which you received an intimation in Form GST DRC-01B Part A, you will not be able to file GSTR-1/IFF for the subsequent period. It is important to ensure timely filing of Form GST DRC-01B Part B to avoid any interruptions in the filing of GSTR-1/IFF. 

4. How will I be intimated that I have to submit reply in Form GST DRC-01B Part B? 

Once the intimation in Form GST DRC-01B Part A is generated, a Reference Number will be assigned. You will receive the intimation via email and SMS, which will include the Reference Number. Please ensure to check both your email and mobile messages for the intimation and keep the Reference Number handy for future reference and correspondence.

Note: You can also check this intimation on GST Portal. Navigate to Services > Returns > Return Compliance > Liability Mismatch DRC-01B.

5. Is Form GST DRC-01B Part B required to be filed monthly or quarterly? 

For quarterly filers (QRMP), Form GST DRC-01B will be generated, if applicable, after filing the quarterly Form GSTR-3B. On the other hand, for monthly filers, Form GST DRC-01B will be generated on a monthly basis after filing the monthly Form GSTR-3B. Therefore, Form GST DRC-01B Part B can be filed either on a monthly or quarterly basis, depending on the frequency of filing Form GSTR-3B.

6. After filing the reply for Form GST DRC-01B Part B, how much time will it take to unblock the Form GSTR-1/IFF? When will I be able to file GSTR-1/IFF?

After filing the reply for Form GST DRC-01B Part B, you can instantly file GSTR-1/IFF. If you are facing any issue while filing GSTR-1/IFF, then you need to log out and log in again after a few minutes.

7. While entering the ARN for filing the reply for Form DRC-01B Part B, I am getting an error message stating that ‘Please provide valid ARN of Form GST DRC-03’. Why am I getting this error message?

If you encounter an error message while entering the ARN to file the reply for Form GST DRC-01B Part B, please check the following points:

• Ensure that the ARN is valid and corresponds to the same Form GST DRC-03 and GSTIN

.• The Form GST DRC-03 should have been filed on or after the date when Form GST DRC-01B Part A was issued.

• Confirm that the cause of payment specified in the Form GST DRC-03 is "Liability mismatch - GSTR-1 to GSTR-3B."

• The overall tax period should align with the period for which Form GST DRC-01B Part A was issued.

• For monthly filers, the period should be the same, including both the "From" and "To" dates.

• For quarterly filers, it should cover at least one month within the quarter. 

8. How can I deselect any reason for the payment difference, after providing the details for the reason selected earlier? 

If you deselect any reasons for difference after providing the details, the system will display an error message, requesting for deletion of details already provided. So, after deleting the details entered for the reason selected earlier, you will be able to deselect that reason.

9. How to view and download the filed Form GST DRC-01B?

To view filed Form GST DRC-01B navigate to Returns > Return Compliance > Liability Mismatch (DRC-01B), select the radio button for Status. Select Completed from drop-down list and click the SEARCH button. Click the Reference number hyperlink for the order you want to view or download. The completed form will be displayed. Click the DOWNLOADDRC-01B button to download the final PDF of Form DRC-01B. 

Conclusion

Form GST DRC-01B Part B plays a vital role in ensuring transparency and consistency in GST return filings. Timely responses to system-generated intimations not only demonstrate compliance but also prevent filing restrictions in subsequent periods. Understanding the process, common issues, and resolution steps can help taxpayers stay on top of their obligations and avoid unnecessary complications. Use this guide as a reference to navigate liability mismatches smoothly and maintain seamless GST compliance.

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