Advisory in respect of introduction of Compliance Pertaining to DRC-01C (Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-R3B)

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..... Advisory in respect of introduction of Compliance Pertaining to DRC-01C (Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-R3B) - Goods and Services Tax - GST Dated:- 6-10-2023 - News - Dear Taxpayers, 1.The Government vide Notification No. 38/2023 Central Tax dated 04th Aug, 2023 inserted the Rule 88D in CGST Rule, 2017 dealing with difference in inp .....

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..... ut tax credit available in GSTR-2B and ITC availed in GSTR-3B . This functionality vis a vis this rule has now started operating on the GST portal. 2. The system now compares the ITC available as per GSTR-2B /2BQ with the ITC claimed as per GSTR-3B /3BQ for each return period. If the claimed ITC exceeds the ITC available as per GSTR-2B by predefined limits, as directed by compe .....

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..... tent authority, the taxpayer shall receive an intimation in the form of Form DRC-01C . 3. Upon receiving the intimation, the taxpayer must file a response using Form DRC-01C Part B . The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03 or provide an explanation for the difference out of the options provided in the form .....

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..... or even choose a combination of both options and file it. 4. In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B , such taxpayers will not be able to file their subsequent period GSTR-1 /IFF. 5. To further help taxpayers with the process, a detailed manual containing the navigation details is available on the GST portal. It offers step-by-step instr .....

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..... uctions and addresses various scenarios related to the functionality. The link is stated below: https://tutorial.gst.gov.in/downloads/news/return_compliance_itc_mismatch_intimation_in_form_gst_drc_01c.pdf Thanking you, Team GSTN - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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