GST
Threshold that triggers a DRC-01C
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Facts
The portal issues DRC-01C only when the excess crosses a limit set by the competent authority. GSTN has not shown the figure on the manual; it is widely reported as both more than ₹25 lakh and more than 20 percent. Check the latest GSTN advisory, as the limit can change.
Provisions and law
- Rule 88D, CGST Rules 2017Intimation DRC-01C when ITC in GSTR-3B exceeds GSTR-2B beyond a limit; reply in 7 days
- Notification 38/2023-CTInserted Rule 88D and Form DRC-01C
Analysis
If the intimation shows a small rupee difference, check whether it is for a different month or combines several months. Read Part A carefully: the period and heads matter. Whether or not you agree with the threshold, the reply is still required to keep GSTR-1 open.
Conclusion
- Read Part A for the exact period and amounts
- Check whether the figures include other months
- Reply in Part B with your reconciliation
- Keep the latest GSTN advisory on file
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