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

Return discrepancy in GST triggers mandatory online explanation; taxpayers must respond to DRC-01B via specified form. Taxpayers must explain material differences between liabilities declared in GSTR 1/IFF and liabilities paid in GSTR 3B/3BQ when the GSTN's automated comparison triggers a DRC 01B intimation due to predefined absolute or percentage thresholds; the required response is to be filed in Form DRC 01B Part B using an automated dropdown for reasons and providing further details when necessary, with a detailed portal manual available for navigation and scenario guidance.