GST demands and mismatches are communicated through the DRC series: DRC-01A is a pre-notice intimation, DRC-01 is the formal show-cause notice, DRC-01B flags a GSTR-1 vs GSTR-3B liability mismatch, and DRC-01C flags an ITC mismatch between GSTR-2B and GSTR-3B. Each has a prescribed response.
The DRC notice map
| Form | What it is | Respond via |
|---|---|---|
| DRC-01A | Pre-notice intimation of proposed liability | Part B / DRC-03 payment |
| DRC-01 | Show-cause notice (Section 73/74) | DRC-06 |
| DRC-01B | GSTR-1 vs GSTR-3B liability mismatch | DRC-01B Part B |
| DRC-01C | ITC mismatch (GSTR-2B vs 3B) | DRC-01C Part B |
| DRC-03 | Voluntary payment of tax | (payment) |
| DRC-07 | Summary of the order/demand | Appeal |
DRC-01B and DRC-01C (auto mismatches)
DRC-01B is issued where the liability declared in GSTR-1 exceeds that paid in GSTR-3B beyond a threshold; the taxpayer must explain or pay in Part B before filing the next GSTR-1. DRC-01C is issued where ITC availed in GSTR-3B exceeds that available in GSTR-2B beyond a threshold; the taxpayer must reverse/justify in Part B, failing which the next GSTR-1/IFF is blocked.
DRC-01A and DRC-01 (demands)
DRC-01A is a pre-SCN intimation — responding (with payment via DRC-03 or an explanation) can close the matter early. DRC-01 is the formal show-cause notice under Section 73/74; reply in DRC-06 with reconciliations and request a personal hearing.
Practical points
- Do not ignore DRC-01B/01C — non-response blocks return filing.
- Use DRC-03 to pay admitted dues and quote the ARN in replies.
- Track every notice's DIN and deadline.
- Keep a monthly GSTR-1 vs 3B and 2B vs 3B reconciliation to pre-empt these.
Key takeaways
- DRC-01A: pre-notice; DRC-01: formal SCN (reply DRC-06).
- DRC-01B: GSTR-1 vs 3B liability mismatch.
- DRC-01C: 2B vs 3B ITC mismatch — non-response blocks filing.
- Pay admitted dues via DRC-03; track DIN and deadlines.