CONCEPT OF DRC -01C – PRACTICAL GUIDE

• Role of DRC – 01C : Basically this is the intimation form which will be received by the taxpayer when there will be any difference in Input tax Credit as per GSTR-3B and GSTR – 2B (i.e. Taxpayer has claimed excess input tax credit in GSTR -3B in comparison to GSTR – 2B.) 

• Compliance Procedure : After Receiving the Intimation in form DRC -01C, taxpayer needs to provide the reply in Part – B of DRC -01C. In this case taxpayer can avail two Options :

• Taxpayer can Accept the Liability on Account of Difference in GSTR – 3B & 2B and pay the Amount through Form DRC -03. In this case Taxpayer has to attach the copy of DRC-03 along with the Part – B of DRC -01C.
• Second Option, Taxpayer can submit the reply regarding the difference in Form GSTR – 3B & 2B with all relevant supporting Documents.
• Consequences of Non Filing the Reply : If taxpayer is not going to file the reply for the Notice in form DRC -01C, in that case taxpayer will not be able to file the subsequent Month GSTR-1.
• Author’s Opinion : As per my view, we should Reconcile the Input figure on monthly basis. In case if you will receive the notice in form DRC -01C on account of Difference in GSTR-3B and 2B, we should file our reply on timely basis so that we can file our Subsequent Period GST Returns on Smoothly Basis.

BY : CA SACHIN JAIN