DRC-01B Reply Format 2026
REPLY TO INTIMATION OF DIFFERENCE IN LIABILITY — PART B OF FORM GST DRC-01B
[Reply under Rule 88C(2) of the CGST Rules, 2017 — liability reported in FORM GSTR-1 / IFF in excess of that paid in FORM GSTR-3B]
To,
{{officer_designation}}
Registered person: {{client_name}} | GSTIN: {{client_gstin}}
Reference no. of intimation (Part A): {{notice_ref}} dated {{notice_date}}
Tax period: {{tax_period}}
Sir / Madam,
1. Part A of the above intimation states that the tax payable as per the statement of outward supplies in FORM GSTR-1 / IFF for the tax period {{tax_period}} exceeds the tax paid as per the return in FORM GSTR-3B for that period by ₹ {{difference_amount}}. The figures, as verified with our records, are:
| Particulars | IGST (₹) | CGST (₹) | SGST / UTGST (₹) | Cess (₹) | Total (₹) |
|---|
| Liability as per FORM GSTR-1 / GSTR-1A / IFF | | | | | |
| Liability paid as per FORM GSTR-3B | | | | | |
| Difference as per Part A | | | | | {{difference_amount}} |
| Less: paid through FORM GST DRC-03 (Section A below) | | | | | |
| Balance explained in Section B below | | | | | |
A. Amount paid through FORM GST DRC-03
2. To the extent the difference represents tax actually short paid, we have paid the differential liability together with interest under section 50, and the details are: [delete this section if nothing is payable]
| ARN of FORM GST DRC-03 | Paid under head | Tax period | IGST (₹) | CGST (₹) | SGST / UTGST (₹) | Cess (₹) | Interest (₹) |
|---|
| ____________ | Tax / Interest | {{tax_period}} | | | | | |
B. Reasons for the part of the difference that remains unpaid
3. The balance difference does not represent tax short paid. The reasons, under the heads listed in Part B of the form, are: [fill in only the rows that apply; the "Details" column is mandatory on the portal for every reason selected]
| S. No. | Reason (as listed in Part B) | Amount of tax explained (₹) | Details |
|---|
| 1 | Excess liability paid in earlier tax periods in FORM GSTR-3B | ____________ | Tax of ₹ ____________ on the supplies now reported was paid in excess in FORM GSTR-3B of ____________ [month], ARN ____________, and has been adjusted in the current period. Working at Annexure 1. |
| 2 | Transactions of an earlier tax period which could not be declared in FORM GSTR-1 / GSTR-1A / IFF of that period, on which tax was already paid in FORM GSTR-3B of that period, and which are now declared in FORM GSTR-1 / GSTR-1A / IFF of the period under consideration | ____________ | Invoices nos. ____________ dated ____________ were omitted from FORM GSTR-1 of ____________ [month] though the tax was paid in FORM GSTR-3B of that month, ARN ____________. They are reported in the present period only to pass the credit to the recipients. List at Annexure 2. |
| 3 | FORM GSTR-1 / GSTR-1A / IFF filed with incorrect details, to be amended in the next tax period (including typographical errors, wrong tax rates, etc.) | ____________ | Invoice no. ____________ was reported with taxable value / rate / tax of ____________ instead of ____________. FORM GSTR-3B carries the correct tax. The entry will be amended in FORM GSTR-1 of ____________ [month]. |
| 4 | Mistake in reporting of advances received and adjusted against invoices | ____________ | Advance of ₹ ____________ was taxed in FORM GSTR-3B of ____________ [month]; the adjustment in Table 11B of FORM GSTR-1 was not reported / was reported in the wrong period, so the invoice value has been counted again. Working at Annexure 3. |
| 5 | Any other reasons | ____________ | ____________ [e.g. credit notes reported in a later GSTR-1; supply reported under forward charge that is liable under reverse charge in the hands of the recipient; liability discharged through FORM GST DRC-03 before the intimation, ARN ____________] |
4. The reasons at Section B account for the whole of the unpaid difference of ₹ ____________. No amount remains unpaid or unexplained.
5. It is requested that the explanation be accepted, that no recovery under section 79 be initiated in terms of Rule 88C(3), and that the restriction under Rule 59(6)(d) on furnishing FORM GSTR-1 / IFF for the subsequent tax period be lifted. Should any part of the explanation not be found acceptable, we request that the reasons be communicated and an opportunity of being heard be given before any recovery is made.
Verification
I, {{signatory_name}}, 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.
Place: __________________
Date: 1 October 2026
For {{client_name}}
_______________________________
{{signatory_name}}
{{signatory_designation}} — Authorised Signatory
Annexure 1 — Reconciliation of the difference
| Sl. | Particulars | Invoice / document ref. | Taxable value (₹) | Tax (₹) | Period in which tax was paid in GSTR-3B | ARN of that GSTR-3B |
|---|
| 1 | | | | | | |
| 2 | | | | | | |
| 3 | | | | | | |
| Total explained | | | | | |
| Difference as per Part A | | | {{difference_amount}} | | |
| Unexplained balance (should be nil) | | | | | |
- Drafting hint: the clock is seven days from the intimation and there is no provision in Rule 88C for extending it. File Part B on the portal first (Services → Returns → Return Compliance → Liability Mismatch (DRC-01B)); this letter is the working behind the entries and the record for the file.
- Drafting hint: Part B is a self-declaration under verification. Select only the reasons you can prove from filed returns, and quote the ARN of the return in which the tax was actually paid.
- Drafting hint: where part of the difference is genuinely short paid, pay it through FORM GST DRC-03 with interest before filing Part B and report the ARN in Section A. On the DRC-03, select the cause of payment that corresponds to the GSTR-1 vs GSTR-3B liability mismatch and quote the intimation reference.
- Drafting hint: tax declared in GSTR-1 but not carried into GSTR-3B is treated as self-assessed tax (Explanation to section 75(12)), which is why Rule 88C(3) goes straight to recovery under section 79 without a show cause notice. A reasoned Part B reply is the only stage at which the explanation is put on record.
