GST
Threshold that triggers DRC-01B
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Facts
Rule 88C applies when the gap exceeds an amount and a percentage recommended by the GST Council. The portal has been reported to use more than ₹25 lakh and more than 20 percent of the GSTR-1 tax. Check the latest GSTN advisory for the current limits.
Provisions and law
- Rule 88C, CGST Rules 2017If GSTR-1 tax exceeds GSTR-3B tax beyond the set limit, intimation in DRC-01B Part A; within 7 days pay through DRC-03 or explain in Part B
Analysis
Both limits need to be crossed for the system to flag it, as reported. A small business with ₹2 lakh gap may not get DRC-01B, but the gap still shows in scrutiny under Sec 61 and can come back as ASMT-10. So reconcile every month even below the threshold.
Conclusion
- Compute GSTR-1 tax minus GSTR-3B tax for each period.
- Check both the rupee gap and the percentage.
- Clear any genuine short payment through DRC-03 with interest.
- Document reasons for differences that are not short payment.
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