Answer

1. F

   Facts

   Rule 88C sends DRC-01B when GSTR-1 liability exceeds GSTR-3B liability beyond the notified limit. You pay the difference with interest through DRC-03 or explain it in Part B within 7 days.

2. P

   Provisions and law

   • Rule 88C, CGST Rules 2017Where GSTR-1 liability exceeds GSTR-3B liability beyond the notified limit, an intimation in DRC-01B asks the person to pay or explain within 7 days.
   • Sec 50(1), CGST Act 2017Interest is payable on tax paid late for the period of delay at the notified rate (18 percent a year); on a late return it is levied only on the portion paid in cash, except where proceedings under Sec 73, 74 or 74A have started.
   • Rule 59(6), CGST Rules 2017GSTR-1 is blocked in specified cases, such as unfiled GSTR-3B or an unexplained DRC-01B or DRC-01C intimation.
3. A

   Analysis

   If the gap is because some invoices were wrongly reported in GSTR-1, explain and correct through amendment. If tax was really short paid, pay with 18 percent interest from the due date. Not replying blocks your next GSTR-1. From the July 2025 period, 3B liability is auto-filled from GSTR-1 and locked, so new gaps should be rare.

4. C

   Conclusion

   1. 1Compare GSTR-1 and 3B liability for the period.
   2. 2Identify the cause of each gap.
   3. 3Pay true shortfall with interest through DRC-03.
   4. 4File Part B of DRC-01B within 7 days.

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