Two Types of GST Mismatch Notices
The GSTN system automatically detects differences between your returns and sends two types of mismatch notices:
Turnover Mismatch
DRC-01B Notice
GSTR-1 turnover is higher than GSTR-3B turnover for the same period. Issued under Rule 88C.
Full DRC-01B Guide →ITC Mismatch
DRC-01C Notice
ITC claimed in GSTR-3B is more than ITC available in GSTR-2B for the same period. Issued under Rule 88D.
Full DRC-01C Guide →GSTR-3B vs GSTR-1 Mismatch Notice Reply (DRC-01B)
This is the most common mismatch notice. Your GSTR-1 declared a higher turnover than what you paid tax on in GSTR-3B. The system flags this as potential tax short-payment.
Common Reasons for GSTR-1 vs GSTR-3B Mismatch
- Timing difference — You filed GSTR-1 for a period but paid tax in GSTR-3B for the next month
- Credit notes not adjusted — Credit notes reflected in GSTR-1 but not in GSTR-3B
- Advance receipts — GST paid on advance in 3B before invoice raised in GSTR-1
- Amendment to old invoices — GSTR-1 amendment changed turnover but 3B was not updated
- Data entry error — Turnover entered incorrectly in either return
📋 How to Reply GSTR-3B vs GSTR-1 Mismatch Notice
- Log in to GST portal → Services → Returns → Response to DRC-01B
- Note the period and discrepancy amount
- Identify the exact reason from the list above
- Draft reply citing Rule 88C of CGST Rules, 2017
- Attach reconciliation statement showing invoice-wise difference
- Submit within 7 days of notice date
→ Read the complete DRC-01B reply guide with step-by-step instructions
GSTR-2B vs GSTR-3B ITC Mismatch Notice Reply (DRC-01C)
You claimed more Input Tax Credit (ITC) in GSTR-3B than what appears in your GSTR-2B auto-populated statement. This is typically because your vendors have not filed their GSTR-1 yet.
Common Reasons for GSTR-2B vs GSTR-3B ITC Mismatch
- Vendor non-filing — Supplier hasn't filed GSTR-1, so invoice not in your GSTR-2B
- Timing difference — Vendor filed for next period, ITC shows in next month's GSTR-2B
- Reverse Charge Mechanism (RCM) — RCM ITC not reflected in GSTR-2B
- Import of goods/services — IGST on imports not yet in GSTR-2B
- ISD credit — Input Service Distributor credit not matching
📋 How to Reply GSTR-2B vs GSTR-3B ITC Mismatch Notice
- Log in to GST portal → Services → Returns → Response to DRC-01C
- Download GSTR-2B for the period and identify missing invoices
- Check vendor filing status for non-appearing invoices
- Draft reply citing Rule 88D of CGST Rules, 2017 and Section 16 of CGST Act
- Attach invoice list with vendor GSTINs and explanation for each missing ITC
- Submit within 7 days of notice date
→ Read the complete DRC-01C reply guide with step-by-step instructions
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Quick Comparison — DRC-01B vs DRC-01C
| Feature | DRC-01B | DRC-01C |
|---|---|---|
| Type | Turnover Mismatch | ITC Mismatch |
| Compares | GSTR-1 vs GSTR-3B | GSTR-2B vs GSTR-3B |
| Legal Basis | Rule 88C, CGST Rules | Rule 88D, CGST Rules |
| Reply Deadline | 7 days | 7 days |
| If No Reply | GSTR-1 blocked | GSTR-1 blocked |
| Payment Needed? | Only if short-payment genuine | Only if ITC genuinely ineligible |
| Detailed Guide | DRC-01B Guide → | DRC-01C Guide → |
Frequently Asked Questions — GST Mismatch Notices
What is a GST mismatch notice?
A GST mismatch notice is an automatically generated alert by the GSTN system when it detects differences between your filed returns. There are two types: DRC-01B for turnover mismatch (GSTR-1 vs GSTR-3B) and DRC-01C for ITC mismatch (GSTR-2B vs GSTR-3B). Both require a reply within 7 days.
GSTR-3B aur GSTR-1 mismatch notice ka reply kaise kare?
GSTR-3B aur GSTR-1 mismatch par DRC-01B notice aata hai. Iska jawab 7 din mein GST portal par dena hota hai. Reply mein Rule 88C cite karo aur difference ka reason batao — timing difference, credit note, ya amendment. Gstreplyai.com par 30 second mein free reply generate kar sakte ho.
My vendor didn't file GSTR-1 — will I get a mismatch notice?
Yes. If your vendor hasn't filed GSTR-1, their invoices won't appear in your GSTR-2B. If you claimed that ITC in GSTR-3B, the system will generate a DRC-01C notice. In your reply, cite vendor non-filing as the reason and provide the vendor's GSTIN and invoice details. This is a valid reason and no payment is required.
Do I have to pay tax for every mismatch notice?
No. Most mismatch notices can be resolved by explaining the reason without any payment. You only need to pay if you confirm there was a genuine short-payment of tax (DRC-01B) or genuinely ineligible ITC was claimed (DRC-01C). In most cases — timing differences, vendor non-filing, credit notes — no payment is needed.
What is the penalty for not replying to a GST mismatch notice?
There is no immediate monetary penalty for not replying, but the consequence is automatic blocking of your GSTR-1 for the next period. This prevents your customers from claiming ITC on your invoices — which can seriously damage business relationships. Always reply within 7 days.