What is DRC-01B Notice?
DRC-01B is a GST notice issued automatically by the GSTN system under Rule 88C of the CGST Rules, 2017. It is sent when the system detects a difference between:
- Turnover declared in your GSTR-1 (outward supplies), and
- Turnover declared in your GSTR-3B (self-assessed tax) for the same tax period
If the GSTR-1 turnover is higher than GSTR-3B by more than ₹25 lakh or 20% (whichever is lower), the system automatically generates and sends you a DRC-01B notice on the GST portal.
📋 Key Facts About DRC-01B
| Parameter | Details |
|---|---|
| Legal Basis | Rule 88C of CGST Rules, 2017 |
| Issued By | GSTN system automatically |
| Reason | GSTR-1 turnover > GSTR-3B turnover |
| Reply Deadline | 7 days from notice date |
| Reply Portal | GST Portal → Services → Returns → Response to DRC-01B |
| Consequence of No Reply | GSTR-1 filing blocked for next period |
Why Did You Get a DRC-01B?
Common reasons for a DRC-01B notice include:
- Timing difference: You filed GSTR-1 for a period but paid tax in GSTR-3B for the next period
- Credit notes: You issued credit notes in GSTR-1 but did not adjust in GSTR-3B
- Amendments: You amended an invoice in GSTR-1 but GSTR-3B was not updated
- Data entry error: Turnover entered incorrectly in either GSTR-1 or GSTR-3B
- Advances received: Advance tax paid in GSTR-3B but invoice not yet filed in GSTR-1
How to Reply DRC-01B — Step by Step
Check the discrepancy on the GST portal
Log in to gstin.gov.in. Go to Services → Returns → Response to DRC-01B. Note the tax period and the discrepancy amount mentioned in the notice.
Reconcile your GSTR-1 and GSTR-3B figures
Download your GSTR-1 and GSTR-3B for the relevant tax period. Identify exactly where the difference arose — which invoices, credit notes, or adjustments caused the mismatch.
Choose your response type
On the portal you will be asked to select one of two options:
Option A: The difference is due to a genuine reason (timing, credit note, amendment) — explain and pay no additional tax.
Option B: You agree there is a short payment — pay the differential tax via DRC-03.
Draft your reply letter
Write a formal reply citing Rule 88C of the CGST Rules, 2017. Explain the reason for the discrepancy clearly with supporting calculations. Attach reconciliation statement if possible.
Submit on the GST portal within 7 days
Upload your reply on the portal. Keep a copy of the acknowledgment. If the officer is satisfied, no further action will be taken.
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Your DRC-01B reply letter should include:
- Reference to the DRC-01B notice number and date
- Your GSTIN, trade name, and registered address
- The tax period under scrutiny
- Specific reason for the GSTR-1 vs GSTR-3B difference
- Legal citation: "In response to the notice issued under Rule 88C of the Central Goods and Services Tax Rules, 2017…"
- Supporting reconciliation statement (table of differences)
- Request for dropping proceedings if reason is valid
⚖️ Key Legal Provisions for DRC-01B Reply
- Rule 88C, CGST Rules 2017 — Governing provision for DRC-01B
- Section 37, CGST Act 2017 — Furnishing details of outward supplies (GSTR-1)
- Section 39, CGST Act 2017 — Furnishing of returns (GSTR-3B)
- GSTR-1A Amendment — You can amend GSTR-1 figures if error was in GSTR-1
Note: Do NOT suggest manual correction of GSTR-3B Table 3 — GSTN has hard-locked it from July 2025.