In a recent update, the Goods and Services Tax Network (GSTN) has introduced a new functionality to enable taxpayers to explain the difference in liability between their GSTR-1 and GSTR-3B returns online. This development comes as a directive from the GST Council and aims to streamline compliance procedures for taxpayers. This article provides an overview of the functionality and outlines the steps to be followed by taxpayers to address the liability difference through Form DRC-01B.
Online Compliance for Liability Difference (DRC-01B)
The new functionality implemented by GSTN compares the liability declared in GSTR-1 or IFF (Invoice Furnishing Facility) with the liability paid in GSTR-3B or 3BQ for each return period. If the declared liability exceeds the paid liability by a predefined limit or the percentage difference surpasses the configurable threshold, taxpayers will receive an intimation in the form of DRC-01B.
Upon receiving the intimation, taxpayers are required to file a reply in Form DRC-01B Part B, providing a clarification through a reason selected from the automated dropdown. In case the reason for the discrepancy is not available in the dropdown, taxpayers must provide the necessary details manually.
To assist taxpayers in using the functionality effectively, GSTN has published a detailed manual on the GST portal. This manual provides step-by-step instructions, including navigation details and addresses various scenarios related to the functionality. It is highly recommended for taxpayers to refer to the manual for a better understanding of the process and to ensure compliance.
Conclusion: The introduction of the new functionality by GSTN offers a simplified and streamlined approach for taxpayers to explain the difference in liability between their GSTR-1 and GSTR-3B returns online. By filing a reply in Form DRC-01B, taxpayers can provide necessary clarifications and details regarding the discrepancy, ensuring compliance with GST regulations. Access to the detailed manual on the GST portal further enhances the ease of understanding and navigating through the functionality. It is essential for taxpayers to utilize this functionality and comply with the requirements to maintain smooth GST compliance procedures.
Also Read : FAQs and step-by-step instructions related to DRC-01B
Goods and Services Tax
Advisory: Online Compliance Pertaining to Liability / Difference Appearing in R1 – R3B (DRC-01B)
29/06/2023
Dear Taxpayers,
1. It is informed that GSTN has developed a functionality to enable the taxpayer to explain the difference in GSTR-1 & 3B return online as directed by the GST Council. This feature is now live on the GST portal.
2. The functionality compares the liability declared in GSTR-1/IFF with the liability paid in GSTR-3B/3BQ for each return period. If the declared liability exceeds the paid liability by a predefined limit or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01B.
3. Upon receiving an intimation, taxpayer must file a reply in Form DRC-01B Part B, providing clarification through reason in automated dropdown and details regarding the discrepancy, if not included in the dropdown.
4. To further help taxpayer with the functionality, a detailed manual containing the navigation details is available on the GST portal. It offers step-by-step instructions and addresses various scenarios related to the functionality. The link is stated below:
https://tutorial.gst.gov.in/downloads/news/return_compliance_in_form_drc_01b.pdf
Thanking You,
Team GSTN
