Rule 88C: intimation of difference between GSTR-1 and GSTR-3B

How the rule works

For each return period, the system compares output liability in GSTR-1 or IFF with liability paid in GSTR-3B. Where the difference exceeds the notified limits, DRC-01B Part A is issued on the portal and by email, setting out the gap.

Within 7 days, the taxpayer must use Part B of DRC-01B to either pay the difference with interest through DRC-03, or explain why it is not payable, or do a mix of both.

Typical explanations

• An invoice was reported twice or wrongly in GSTR-1 and corrected later through amendment.
• Tax was paid in an earlier or later GSTR-3B, for example on advances.
• A credit note was reported in GSTR-1 of a different period.
• Clerical errors in GSTR-1 corrected through GSTR-1A.

If you do not respond

Under Rule 59(6), a taxpayer who has neither paid nor explained the difference cannot file GSTR-1 or IFF for subsequent periods. Any amount that remains unpaid can be recovered under Section 79. Now that GSTR-3B liability is auto-populated from GSTR-1 and locked, fresh mismatches should be rarer, but older periods and amendments can still trigger intimations.

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.