What is Form DRC-01C?

In the 50th GST Council meeting held on 11th July 2023, the Indian government introduced a new mechanism to address ITC mismatches between GSTR-2B and GSTR-3B. Subsequently, CGST Rule 88D was notified on 4th August 2023, vide CGST notification 38/ 2023, allowing the GST system to send automatic notifications to taxpayers regarding significant ITC discrepancies between these returns.

The ITC mismatch details will be available in Part A of Form DRC-01C. In such cases, taxpayers must file to file Form DRC-01C Part B to provide the necessary details and reconcile the difference.