Answer

1. F

   Facts

   DRC-01B is a system intimation under Rule 88C. It comes when the tax in your GSTR-1 (or IFF) for a period is higher than the tax you paid in GSTR-3B beyond a set limit. It asks you to pay the gap or explain it within 7 days.

2. P

   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
   • Rule 59(6), CGST Rules 2017GSTR-1 for the next period cannot be filed if a DRC-01B intimation has not been answered or paid
3. A

   Analysis

   The portal compares two returns you filed. GSTR-1 tells the department what you sold, GSTR-3B is where you pay. If you reported ₹1.2 crore of tax in GSTR-1 but paid ₹80 lakh in GSTR-3B, the gap triggers the intimation. It is not yet a demand, but if ignored it blocks your next GSTR-1 and can lead to recovery.

4. C

   Conclusion

   1. 1Open the dashboard, Services, User Services, View Notices and Orders, or the DRC-01B link.
   2. 2Download Part A and note the period and amount.
   3. 3Reconcile GSTR-1, GSTR-3B and books for that period.
   4. 4Pay through DRC-03 or explain in Part B within 7 days.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.