## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Form DRC-01C

In the 50th GST Council meeting held on 11 July 2023, the Indian government introduced a new mechanism to address ITC mismatches between GSTR-2B and GSTR-3B. Subsequently, CGST Rule 88D was notified on 4 August 2023, vide CGST notification 38/ 2023, allowing the GST system to send automatic notifications to taxpayers regarding significant ITC discrepancies between these returns.

If the difference between the ITC available in your GSTR-2B return and the ITC claimed in your GSTR-3B return exceeds a pre-defined limit, you will receive a notification in Form GST DRC-01C.

The ITC mismatch details will be available in Part A of Form DRC-01C. In such cases, you must file Form DRC-01C Part B to provide the necessary details and reconcile the difference.   

## Filing Form DRC-01C Part B

To file Form DRC-01C Part B:

*   Go to the [GST portal](http://www.gst.gov.in/).
*   Click **Login** on the top right corner of the page.
*   On the following page, enter your GST **Username** and **Password** and click **Login**.
*   Click **Services** from the top bar.
*   In the dropdown, hover over _Returns_ and select **Return Compliance**.

![Click Return Compliance under Returns](/in/books/help/images/gst/form-drc-01c/return-compliance.png)

(or)

*   Click **Return Compliance** in the _Dashboard_.
*   On the _Return Compliance_ page, click **View** in the _ITC Mismatch (DRC-01C)_ tile.

![Click View in the ITC Mismatch (DRC-01C) Card](/in/books/help/images/gst/form-drc-01c/itc-mismatch-drc-01c.png)

*   On the _ITC Mismatch (DRC-01C)_ page, you can view the reference number of all the return periods for which you received the notification in Form DRC-01C Part A.

![List of ARNs](/in/books/help/images/gst/form-drc-01c/list-of-arn.png)

**Insight**: You can also select from the **Reference number**, **Return period**, or **Status** options at the top and search for the required details.

### Reference Number

If you select Reference number, enter the _Application Reference Number (ARN)_ and clcik **Search**.

![Enter the reference number to view its details](/in/books/help/images/gst/form-drc-01c/reference-number.png)

If the status of the record is **Pending**, you can file Form DRC-01C.

### Return Period

If you select Return period:

*   Select the financial year for which you want to file Form DRC-01C from the dropdown below the **Financial Year** field.
*   Select the return for which you want to file Form DRC-01C from the dropdown below the **Return period** field.
*   Click **Search**.

![Select the return period to view the ARNs for the period](/in/books/help/images/gst/form-drc-01c/return-period.png)

### Status

If you select Status, select either _Pending_ or _Completed_ as the status from the dropdown and click **Search**.

![Select the status to view ARNs with that status](/in/books/help/images/gst/form-drc-01c/status.png)

*   Click the **ARN** for the period for which you want to file _Form DRC-01C_.

The Form DRC-01C for the ARN entered will be displayed. It contains two parts: Part A and Part B.

Part A contains the section - **Intimation of difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return**. 

Part B contains the section - **Reply by Taxpayer in respect of the intimation of difference in input tax credit**. It is further divided into two sub-parts. In subpart 1, you can make payment for the **Difference in ITC**. In subpart 2, you can select a **Reason** for the _Difference in ITC_ and provide further explanation for the same.

As a taxpayer, you’ll have to make a payment for the **Difference in ITC** or select a **Reason** for the _Difference in ITC_ and provide further explanation for the same in the Part B.

![Form DRC-01C](/in/books/help/images/gst/form-drc-01c/form-drc-01c.png)

### Make Payment for the Difference in Liability Reported

To make payment for the difference in liability reported:

*   In the _1\. Paid the difference amount through DRC-03_ section of the _Part B of Form DRC-01C_, enter the _reference_ _number_ of the period for which you received the DRC-01C Part A notification in the **ARC for DRC-03** text box.
*   Click **Validate**.

![Enter ARN and Click Validate](/in/books/help/images/gst/form-drc-01c/validate-arn.png)

The summary of the payment details that have been paid through DRC-03 towards the difference in ITC will be displayed.

![Payment details of ARN](/in/books/help/images/gst/form-drc-01c/arn-payment-details.png)

*   If you get the error message **Please provide valid ARN for DRC-03**, check the following:
    
    *   Ensure that the ARN is valid and that it corresponds to the DRC-03 and GSTIN for which you received the DRC-01C Part A notification.
    *   Verify that the cause of payment specified in DRC-03 is **ITC mismatch – GSTR-2A/2B to Form GSTR- 3B**.
    *   The DRC-03 has been filed on or after the date on which you received the DRC-01C Part A notification was issued.
    *   The overall tax period aligns with the period for which of the DRC-01 Part A notification was issued.
        *   If you file your GSTR-3B return every month, ensure that the from and to dates match the period.
        *   If you file your GSTR-3B return every quarter, ensure that the period covers at least one month within the quarter.

![How to resolve 'Please provide valid ARN of DRC-03' error](/in/books/help/images/gst/form-drc-01c/invalid-arn-error.png)

*   If you haven’t made payment for the difference in liability reported, click **Click Here for DRC-03**.

![Click 'Click Here For DRC-03' to make payment](/in/books/help/images/gst/form-drc-01c/click-here-for-drc-03.png)

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## Select Reason for the Difference in  ITC

To select a reason for the difference in ITC:

*   In the _2\. Select and explain the reason for difference_ section of the _Part B of Form DRC-01C_, check the checkbox with the relevant reason, and provide a detailed explanation in the text box next to the reason. The reason can be up to 500 characters.
*   If the reason is not specified, check the **Any other reasons** option and provide a detailed explanation in the text box next to it.

![Select the reason for non-payment and provide details](/in/books/help/images/gst/form-drc-01c/reason-for-non-payment.png)

*   Click **Save**.
*   Check the declaration check box at the bottom. The checkbox will be enabled only after you click **Save.** 
*   Select the **Name of Authorized signatory** from the dropdown below the field and enter the **Place** in the text box below the field. The **Designation/Status** and **Date** fields will be auto-populated.
*   Click **Save**. You’ll get a notification that the details have been saved.
*   Click **File GST DRC-01C**. This button will be enabled only when you check the declaration check box and enter the required details in it.

![Declaration](/in/books/help/images/gst/form-drc-01c/declaration.png)

*   Click **Download DRC-01C**. A system-generated draft order will be downloaded into your system as displayed. Check the draft order carefully to rule out any discrepancies.
*   In the pop-up that appears, click **Proceed**.
*   On the following page, you can choose whether you want to file using an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC). Click **File DRC-01C With EVC** or **File DRC-1C With DSC**.
*   Enter the OTP sent to the email address and mobile number of the primary authorized signatory registered on the GST portal, and click **Verify**.

**Note:** If you don’t receive the OTP within 30 seconds, you can click **Resend OTP** to get a new OTP. You request for a new OTP up to 3 times.

![Enter the OTP](/in/books/help/images/gst/form-drc-01c/otp.png)

*   In the pop-up that appears, click **OK**.

With this, you have filed your reply for the DRC-01C Part A notification. You can check the status from the [Status](/in/books/help/gst/form-drc-01c.html#status) option.

To know more about Form DRC-01C, read our FAQs on [Form DRC-01C](/in/books/kb/gst/#drc-01c).

**Warning:** If you don’t file a response to Form GST DRC-01C for a previous tax period within 7 days from the date on which you received the notification, then for the subsequent tax period, you will not be able to file your GSTR-1/IFF return. This will continue until you either deposit the amount specified in the notification or provide an explanation for non-payment.

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