Why DRC -01C Error coming Again? Is it will continue to be every month?
GSTN implemented From DRC-01C in month of September 2023 under Rule 88D of CGST Rules.
Form DRC-01C Implemented to deal with mismatches between ITC claimed in form GSTR-3B and input Tax credit (ITC) available in auto generated report Form GSTR-2B. If a taxpayer claimed excess tax credit by a prescribed percentage than what Input tax credit available In form GSTR-2B a system generated auto intimation will be sent to the taxpayer in part-A of Form DRC-01C and taxpayer need to reply that intimation within 7 days in part-B of form DRC-01C.
[Full Procedure for filling DRC-01C can accessed from this link]
Since form DRC-01C implemented in month of September 2023, System starts checking on compliance of Form DRC-01C from return period October 2023. When taxpayer starts filling of GSTR-1 for the period October -2023, an error message was getting populated that “system checking on compliance of Form DRC-01C Please try filling you return in sometime” Many grievances had been lodged in this regard but the error was gone off automatically after first week of November 2023 and the taxpayer who had no differences in form GSTR-3B and GSTR-2B was allowed to file their return. Why this error was occurring last month because this was the first month of Implementation of form DRC-01C, So system was not ready to analyze every taxpayers Return and to issue Intimation, So due to this system glitches all Taxpayer Return were kept on hold for filing GSTR-1 Return.
Since this was the first month, taxpayers expecting this error will not repeat in upcoming month.
But many taxpayers are facing the same issue while filling GSTR-1 for the month of November-2023.
“System is checking on form DRC-01C Compliance, please try filing Return in some”
So the Question is arising whether taxpayers has to face same issue every month and have to follow up with the Department to resolve the glitches.
As per the FAQ issued by the Department on filling form DRC-01C, the intimation regarding differences of ITC will be sent to the taxpayers after filling of the form GSTR-3B of respective month or quarter.
So the practically system have at least 10 days for issuing intimation for mismatch in ITC, in that case there is no need to keep taxpayer on hold from 1st day of month for filing GST Return.
Since provision itself says form DRC-01C intimation will be issued after filling of form GSTR-3B so we can expect DRC-01C error will not repeat in upcoming Returns, and system will be able issue intimation to the concerned taxpayer on or before end of the month.
If error appearing to the taxpayers while filling Nov-2023 return this is only happening because of the system glitches. The taxpayers can raise ticket in this regard on GST portal and wait for some time, if there no mismatches in ITC , this error will go off automatically and the taxpayer will be able to file their return.