Received Form GST DRC-01B – the automatic intimation under Rule 88C that the liability declared in your GSTR-1/IFF exceeds the tax paid in GSTR-3B? You have 7 days to respond in Part B, your next GSTR-1 stays blocked until you do, and unlike other notices the unpaid amount is treated as self-assessed tax recoverable directly under Section 79. This free CA-built tool reconciles the difference against the notified reasons, computes interest at 18 percent where payment is due, and generates ready-to-paste Part B explanations within the portal’s 500-character limit, plus a reconciliation annexure for your records.
1Intimation details (from Part A)
Liability comparison as per Part A (Rs)
| Head | Liability per GSTR-1 / IFF | Paid through GSTR-3B | Difference |
|---|---|---|---|
| IGST | 0 | ||
| CGST | 0 | ||
| SGST | 0 | ||
| Cess | 0 | ||
| Total | 0 | 0 | 0 |
2Explain the difference – the notified reasons
These are the five reasons exactly as notified in Form DRC-01B Part B. Enter the amount attributable to each and your specific facts – invoice numbers, periods, amendment references. Specific beats generic.
3Payment of any genuine shortfall + interest (optional)
What is DRC-01B and when is it issued?
Form GST DRC-01B is an automatic, system-generated intimation under Rule 88C of the CGST Rules (in force since 26 December 2022). After you file GSTR-3B, the system compares the tax payable declared in GSTR-1/IFF with the tax actually paid through GSTR-3B for the period. Where the shortfall crosses the system threshold – per the GST Council’s recommendation, currently understood to be a difference above 20 percent and Rs 25 lakh, though the parameter is configurable and not separately notified – Part A of DRC-01B lands on your dashboard with email and SMS alerts.
You must respond within 7 days in Part B: pay the differential with interest via DRC-03, explain it against the notified reasons, or both. Until you respond, Rule 59(6) blocks your next GSTR-1/IFF. If you neither pay nor explain acceptably, the amount is treated as self-assessed tax and is recoverable under Section 79 read with Section 75(12) – after an intimation in Form DRC-01D under Rule 142B. The Gujarat High Court has held (November 2025) that recovery, including of interest, cannot be initiated without the DRC-01D route – advisory letters are not recovery notices.
The five notified reasons – and what they cover
| # | Reason (as in the form) | Typical use |
|---|---|---|
| 1 | Excess liability paid in earlier tax periods in GSTR-3B | Earlier excess payment now netted against the current period |
| 2 | Earlier-period transactions declared in GSTR-1/IFF now, tax already paid in GSTR-3B of that period | Late reporting of old invoices in GSTR-1 where the tax was paid on time |
| 3 | GSTR-1/IFF filed with incorrect details – will be amended in next tax period | Duplicates, typographical errors, wrong tax rates, exempt supplies shown taxable |
| 4 | Mistake in reporting of advances received and adjusted | Table 11A/11B advance reporting errors |
| 5 | Any other reasons (specify) | Credit-note netting differences, QRMP/IFF timing, e-commerce Section 9(5)/52 reporting where the operator pays the tax |
Frequently asked questions
Is DRC-01B a demand notice?
No – it is an automated intimation. But it is sharper than most: liability declared in GSTR-1 is self-assessed tax, so an unpaid and unexplained difference can proceed to direct recovery under Section 79 (after a DRC-01D intimation) without any show cause notice.
What if my GSTR-1 was simply wrong?
Select reason 3, state the specific error (invoice numbers, the nature of the mistake) and amend the GSTR-1 in the next period as promised. A clear, specific explanation closes most DRC-01B intimations without payment.
How is interest calculated if I pay the shortfall?
At 18 percent per annum under Section 50(1), from the GSTR-3B due date of the mismatch period to the date of payment. The portal does not compute it in DRC-03 for this cause – use the calculator on this page and enter the figure manually.
Can I attach my reconciliation to Part B?
No – Part B is a structured form with a 500-character details box per reason and no upload facility. Keep the annexure generated here in your records for any follow-up.
What if I miss the 7-day window?
Your next GSTR-1/IFF stays blocked until you file Part B, and recovery proceedings can be initiated. File Part B even if late – the block lifts immediately on filing.