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Automated Intimation for ITC Discrepancy: Bridging Gaps in GST Reporting

In a recent development, the Goods and Services Tax Network (GSTN) has introduced a crucial functionality on the GST portal to address disparities between Input Tax Credit (ITC) figures in GSTR-2B and those claimed in GSTR-3B. This move aligns with the GST Council’s directive to streamline reporting and ensure accuracy in tax credit utilization.

Intelligent Comparison of ITC Figures

The newly implemented feature systematically 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 surpasses a predefined limit or the percentage difference exceeds a configurable threshold, taxpayers are promptly notified through an automated intimation in the form of DRC-01C.

Responsive Action with Form DRC-01C Part B

Upon receiving an intimation, impacted taxpayers are required to file a response using Form DRC-01C Part B. They have the flexibility to provide details of the payment made to reconcile the difference using Form DRC-03. Alternatively, they can furnish an explanation for the disparity or opt for a combination of both options.

Consequences of Non-Compliance

It is crucial for impacted taxpayers to file a response in Form DRC-01C Part B within the stipulated timeframe. Failure to do so will result in the inability to file subsequent period GSTR-1/IFF. This emphasizes the importance of prompt and accurate reconciliation to maintain compliance with GST regulations.


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