DRC-01C Error | New glitches on GST Portal restricting taxpayer from filing GST Return
On recommendation of 50th GST council meeting, CBIC notified rule 88D vide notification No. 38/2023 – Central Tax dated August 04, 2022 under CGST Rules, to deal with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return.
Under rule 88D, GSTN enable Form DRC-01C on GST portal in October 2023, which intimate the taxpayer for any excess input tax credit claimed in GSTR Return (i.e. GSTR-3B)
Form DRC-01C has two parts, the system will automatically issue intimation to the taxpayer in PART-A of the Form DRC-01C if input credit claimed in GSTR-3B exceeds the credit available in auto-generated statement GSTR-B, after receipt of intimation taxpayer has to reply that intimation within 7 days in PART-B of the Form DRC-01C. Non-compliance of the same will lead to initiating recovery action by department under section 73 or 74 of CGST Act and GST return for the succeeding period will be blocked to file until aforesaid intimation resolve.
Now, since this is first month of implementation of Form DRC-01C on GST portal, the system is not able identified which taxpayer have the difference in ITC and liable for intimation and which is not, and because of this glitches, the portal has restricted all the taxpayer to file GSTR-1 for the month of October 2023 by saying;
“Error! The system is checking on compliance for Form DRC-01C. Please try to file GSTR-1 again after some time.”
Since this is implementation phase of new system at GST Portal so it’s taking time to check compliance of Form DRC-01C.
So many grievances have been raised by the taxpayers in this regard, department is working on to resolve the issue. Once the system implemented properly on GST portal, the same issue should not come to the taxpayer’s from upcoming month.
As a Taxpayer what should do to resolve the error?
Since this is not an actual error or discrepancies from the taxpayer part, the error is coming due to the system glitches because its not ready to accept GSTR-1 as portal is still checking compliance of Form DRC-01C. Once the compliance check done by the system, it will issue intimation to the taxpayer who is liable for it, and will allow to file GSTR-1 return by those taxpayer’s who are not liable for intimation by Form DRC-01C.
So as a taxpayer you should wait until system is ready to accept GSTR-1 return. Further a taxpayer can raise ticket with the department for speedy resolution in regard. Grievance ticket can be raised from this link https://selfservice.gstsystem.in
Check out YouTube video from the below link on this topic
Disclaimer
Article written and video recorded above are for the education purpose only, and it does not constitute any legal advice.