Reconcile Table 3.1 GSTR-3B tax paid against GSTR-1 declared liability and check DRC-01B automated system intimation triggers under CGST Rule 88C.
GST system triggers automated Form GST DRC-01B intimation when tax declared in GSTR-1 exceeds GSTR-3B by more than 20% AND by an amount exceeding ₹25,00,000 (or state specified threshold).
Tax gap is ₹36,000 (20.00%). Discrepancy is below ₹25 Lakhs threshold for automated DRC-01B blocking, but reconciliation is advised.
Rule 88C of the Central Goods and Services Tax Rules governs automated intimations for differences between the liability reported in outward return (GSTR-1/IFF) and the liability discharged through summary return (GSTR-3B).
Taxpayers receiving Part A of Form GST DRC-01B have exactly 7 days to either:
Option 1: Pay the differential liability through Form GST DRC-03 along with applicable Section 50 interest.
Option 2: Submit explanation in Part B of DRC-01B justifying reasons (e.g. data error, timing difference, advance adjustments).
Under Rule 59(6)(d), if a taxpayer fails to respond to DRC-01B or pay the differential tax within 7 days, the GST Portal automatically blocks the filing of GSTR-1 / IFF for subsequent periods until compliance is fulfilled.
| Scenario | GSTR-1 State | GSTR-3B State | Permissible DRC-01B Explanation |
|---|---|---|---|
| Advance Adjusted | Invoiced fully | Tax paid earlier adjusted | Tax paid on advance in earlier month |
| Clerical Typo in GSTR-1 | Over-reported | Actual correct tax paid | Typographical error in GSTR-1 to be amended in next period |
| Credit Note Timing | CN reported in GSTR-1 | Net tax discharged | Credit note effect adjustment |
Taxpayers must file Part B of Form GST DRC-01B or deposit the differential tax via DRC-03 within 7 days from the receipt of the electronic intimation on the portal.
Yes. Under Section 79, if the taxpayer neither pays the amount nor provides an acceptable explanation within 7 days, recovery proceedings can be initiated directly for the self-assessed tax shown in GSTR-1.
Yes. At the end of the quarter, total tax declared across Month 1 & Month 2 IFF plus Month 3 GSTR-1 is compared against quarterly GSTR-3B Table 3.1.