Delve into Form DRC-01B, a recent GST portal feature allowing taxpayers to address liability differences between GSTR-1 and GSTR-3B effectively.
Introduction
Recently, on 29th June 2023, GSTN introduced a new advisory regarding a functionality on the GST portal. This feature allows taxpayers to explain differences between their liability as declared in Form GSTR-1 and the liability paid through Form GSTR-3B. The discrepancies trigger an intimation in Form DRC-01B, specifying the variance and prompting the taxpayer to respond. In this article, we will delve into the fundamental aspects of Form DRC-01B, covering its basics, procedure to file Part B, and the consequences of non-filing.
Basics of Form DRC-01B
Form DRC-01B is a recent functionality on the GST portal, generated when a variance in liability is observed between Form GSTR-1 and Form GSTR-3B. It is applicable to a range of taxpayers, including regular taxpayers, casual taxpayers, composition scheme dealers, SEZ units, and SEZ developers.
Part A of Form DRC-01B – Intimation
Part A of Form DRC-01B serves as an intimation to the taxpayer regarding the difference in liability. The taxpayer must respond to this intimation via Part B, and it is essential to furnish a reply whenever an intimation in Form DRC-01B is received.
Procedure to File Part B of Form DRC-01B
The taxpayer receiving an intimation in Form DRC-01B can respond through Part B by following a simple step-by-step procedure:
- Login to the GST Portal: Visit the GST portal and log in with appropriate credentials.
- Access Return Compliance Section: Navigate to Services > Returns > Return Compliance.
- View Liability Mismatch (DRC-01B): Click on ‘Liability Mismatch (DRC-01B)’.
- View the Intimation Details: Click on the hyperlink under the Reference Number to view the intimation details.
- Understand the Difference in Liability: Understand the difference in liability and choose an appropriate response based on the provided possibilities.
Provide Necessary Details in Part B:
- If accepting the difference, provide the ARN of DRC-03 through which the difference amount is paid.
- If not accepting the difference, explain the reason by selecting the appropriate option(s) or providing another valid reason.
- Verify and Save the Response: Verify all the details and click on ‘SAVE’.
- File GST DRC-01B: After verifying, click ‘File GST DRC-01B’.
Consequences of Non-Filing Response on Receipt of Intimation in Form DRC-01B
Failure to respond via Part B of Form DRC-01B upon receiving an intimation results in the inability to file a return in Form GSTR-1/IFF for subsequent periods.
Comparison Criteria for Liability Declaration
The comparison is triggered based on two key criteria:
- Exceedance of Pre-defined Limit: When the liability declared in Form GSTR-1 exceeds the liability paid in Form GSTR-3B by a pre-defined limit set by the GSTN.
- Percentage Difference Threshold: If the percentage difference between the liability declared in Form GSTR-1 exceeds a configurable threshold compared to the liability paid via Form GSTR-3B.
Analysing Form DRC-01B: Part A – Intimation Details
Part A of Form DRC-01B provides essential intimation details to the taxpayer. Understanding these details is crucial to formulate an accurate response in Part B. Let’s break down the components of this intimation to facilitate a comprehensive understanding.
Key Intimation Components
- Reference Number: A unique identifier for the intimation, crucial for tracking and responding appropriately.
- Form Type: Specifies the type of form triggering the intimation (e.g., GSTR-1, GSTR-3B).
- Financial Year and Return Period: Provides the relevant financial year and return period for which the intimation is generated.
- Status: Indicates the current status of the intimation.
- Responding Effectively: Part B – Filing the Response
Part B of Form DRC-01B is where the taxpayer provides a response to the intimation received. It is imperative to file a clear and accurate response to avoid any compliance issues. Let’s outline the various steps involved in filing a response effectively.
Possible Response Scenarios
- Accepting the Difference: Providing the ARN of DRC-03 for the paid difference amount, acknowledging and accepting the discrepancy in liability.
- Not Accepting the Difference: Offering a valid reason for not accepting the difference and explaining the rationale behind the disagreement.
- Partial Acceptance: Accepting a portion of the difference and providing a valid reason for the partial acceptance.
Navigating the GST Portal: Filing Part B of Form DRC-01B
Understanding how to access and navigate the GST portal for filing the response in Part B of Form DRC-01B is crucial. Let’s provide a step-by-step guide to ensure a smooth process.
Step-by-Step Guidance
- Access the GST Portal: Log in to the GST portal using the appropriate credentials.
- Locate and Access DRC-01B Response Section: Navigate to the specific section dedicated to DRC-01B responses.
- Input Response Details: Fill in the necessary details based on the chosen response scenario – accepting, not accepting, or partially accepting the difference in liability.
Conclusion
In conclusion, understanding and efficiently utilising Form DRC-01B is crucial for seamless compliance with GST regulations. Responding promptly and accurately to discrepancies ensures a smooth continuation of return filings and compliance with the GST framework. For expert guidance and assistance in navigating GST compliance, trust Vakilsearch to keep you informed and compliant on your GST journey.
