Answer

1. F

   Facts

   Under Rule 88C, if the tax in GSTR-1 for a period exceeds the tax paid in GSTR-3B beyond a limit, the portal issues DRC-01B. You must pay the difference or explain it in Part B within seven days, otherwise GSTR-1 for the next period is blocked.

2. P

   Provisions and law

   • Rule 88C, CGST Rules 2017Intimation DRC-01B when GSTR-1 liability exceeds GSTR-3B liability beyond a limit
   • Rule 59(6), CGST Rules 2017GSTR-1 is blocked if GSTR-3B is pending, bank details are missing or a DRC-01B or DRC-01C reply is pending
3. A

   Analysis

   Since GSTR-3B liability is now auto-filled and locked from GSTR-1, new gaps mostly come from older periods or GSTR-1A changes. Typical genuine reasons are invoices reported in GSTR-1 of one month but taxed in GSTR-3B of another, or advances already taxed. Explain with amounts, or pay through DRC-03 with interest where tax was short.

4. C

   Conclusion

   1. 1Compare tax by head in GSTR-1 and GSTR-3B for the month
   2. 2Identify timing or reporting reasons
   3. 3Pay any shortfall with interest by DRC-03
   4. 4File the DRC-01B Part B reply within seven days

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