ITC Mismatch in GSTR -2B VS GSTR -3B
Advisory for Online Compliance Pertaining to ITC mismatch -GST DRC-01C or we can say that ITC Mismatch in GSTR -2B VS GSTR – 3B .
Difference in Input Tax Credit (ITC) available in GSTR-2B & ITC claimed in the GSTR-R3B
What is GSTN new features ?
- It is informed that GSTN has developed a functionality to generate automated intimation in Form GST DRC-01C .
- which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B statement & ITC claimed in GSTR-3B return online as directed by the GST Council.
- This feature is now live on the GST portal.
The new functionality in ITC ?
- This functionality compares the ITC declared in GSTR-3B/3BQ with the ITC available in GSTR-2B/2BQ for each return period.
- If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a predefined limit
- Or the percentage difference exceeds the configurable threshold, taxpayer will receive an intimation in the form of DRC-01C.
What to do after intimation ?
- Upon receiving an intimation, the taxpayer must file a response using Form DRC-01C Part B.
- The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03 .
- or provide an explanation for the difference, or even choose a combination of both options.
More in detail ?
- In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such taxpayers will not be able to file their subsequent period GSTR-1/IFF.
Addressing ITC mismatches between GSTR-2B and GSTR-3B is crucial for GST compliance. Regular reconciliation ensures accuracy, smooth audits, and streamlined financial processes for your business.