GST DRC-01B explained: liability mismatch between GSTR-1 and GSTR-3B

What triggers it

The portal compares outward liability declared in GSTR-1 or IFF with liability paid in GSTR-3B for the same period. Where the shortfall crosses the prescribed limit, DRC-01B Part A is generated and sent by email and on the portal.

How to respond within 7 days

Open the intimation on the portal and file Part B. You can report that the difference has been paid through DRC-03 and give the ARN, explain the difference, or do both for different parts.

Prepare a month-wise table showing liability in GSTR-1 and GSTR-1A against liability in GSTR-3B for the flagged period and adjacent periods. Many differences net off over two or three months, and a table that shows the netting is usually the clearest explanation.

• Invoices reported in GSTR-1 but liability paid in an earlier or later GSTR-3B
• Amendments or credit notes reported later in GSTR-1A or a subsequent GSTR-1
• Invoices wrongly reported in GSTR-1 that were never supplies
• Advances already taxed in an earlier period

If you do not respond

Rule 59(6) blocks filing of GSTR-1 or IFF for the next period until you pay or explain. The unpaid amount is also recoverable under Section 75(12) read with Section 79, and an intimation in DRC-01D can follow. Because GSTR-3B output liability is now auto-populated from GSTR-1 and GSTR-1A and locked, such mismatches should become rarer, but older and transition periods still produce them.

Mistakes to avoid

• Paying the difference without filing Part B, which leaves the block in place
• Giving a vague explanation without period-wise reconciliation
• Ignoring the email because the filing deadline seems far away

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.