The Central Government issued a notification (no. 38/2023) on 4th August 2023, which introduced some changes to the Central Goods and Services Tax Rules (CGST) Rules. These modifications include both updates to existing rules and the addition of new rules.
The recent amendment to the Central Goods and Services Tax (CGST) Rules has introduced a new rule called Rule 88D. This new rule specifies how to handle any discrepancies or differences in the Input Tax Credit (ITC) available as per the auto-generated statement (GSTR-2B) containing ITC details and the ITC claimed in the return (GSTR-3B). The rule lays out the procedure for reconciling and dealing with such differences to ensure accurate and compliant claiming of Input Tax Credit.
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In response to the newly inserted Rule 88D in the Central Goods and Services Tax (CGST) Rules, the government has introduced a new Form GST DRC-01C. This form is automatically generated by the system and serves as an intimation to notify any differences between the Input Tax Credit (ITC) available in the auto-generated statement (GSTR-2B) containing ITC details and the ITC claimed in the return (GSTR-3B). The purpose of this form is to inform taxpayers about any discrepancies and to facilitate proper reconciliation and compliance with the new rule.
In Part A of the Form GST DRC-01C, the following details will be included:
- Reference Number: A unique identification number assigned to the form for tracking and reference purposes.
- Date: The date when the Form GST DRC-01C is generated or issued.
- GSTIN (Goods and Services Tax Identification Number): The unique 15-digit GST identification number allotted to the taxpayer.
- Legal Name: The name of the taxpayer as mentioned in their GST registration.
These details form the initial section of Part A in the Form GST DRC-01C, serving as basic identification information for the taxpayer and the form itself.
“1. It is noticed that the input tax credit availed by you in the return furnished in FORM GSTR-3B Exceeds the amount of input tax credit available to you in accordance with the auto-generated statement containing the details of input tax credit made available to you in FORM GSTR-2Bfor the period by an amount of Rs. …………… The details thereof are as follows:
2. In accordance with sub-rule (1) of rule 88D, you are hereby requested to either pay an amount equal to the said excess input tax credit, along with interest payable under section 50, through FORM GST DRC-03 and furnish the details thereof in Part-B of FORM GST DRC-01C, and/or furnish the reply in Part-B of FORM GST DRC01C incorporating reasons in respect of that part of the excess input tax credit that has remained to be paid, within a period of seven days.
3. It may be noted that where any amount of the excess input tax credit remains to be paid after completion of a period of seven days and where no explanation or reason for the same is furnished by you or where the explanation or reason furnished by you is not found to be acceptable by the proper officer, the said amount shall be liable to be demanded in accordance with the provisions of section 73 or section 74, as the case may be, of the Act.
4. This is a system generated notice and does not require signature.”
The Part B of the Form GST DRC 01C is dedicated to the Reply by Taxpayer in respect of the intimation of difference in ITC. It shall contain Reference number of intimation and date.
The form starts with
“ I have paid the amount equal to the excess input tax credit, as specified in Part A of FORM GST DRC-01C, fully or partially, along with interest payable under section 50, through FORM GST DRC-03, and the details thereof are as below: Verification
Verification
I ____ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom. When responding to the form, the taxpayer is required to affix their authorised signature along with their name, designation, place, and date.
Source: taxscan
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