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New GST Rule Alert: DRC-01C Notices Now Triggered Automatically – What You Must Do Within 7 Days!

 Table of Contents

  1. What is DRC-01C?
  2. Why Are You Getting This Notice?
  3. New Automated GST Rule Effective March 2025
  4. 7-Day Deadline: What You Must Do
  5. Consequences of Ignoring the Notice
  6. FAQ

 What is DRC-01C?

DRC-01C is an intimation issued under Rule 88C of the CGST Rules when:

  • Your GSTR-1 shows outward supplies (sales made)
  • But those supplies don’t match GSTR-3B (actual tax paid)

It’s GSTN’s way of telling you: “Hey, you reported high sales, but didn’t pay tax accordingly—explain or pay the difference.”

 Why Are You Getting This Notice?

You’re likely getting a DRC-01C because of:

  • Mismatched invoices between GSTR-1 and GSTR-3B
  • Clerical errors in reporting outward supplies
  • Intentional underreporting in GSTR-3B to delay tax payments

Even inadvertent mistakes will now be flagged due to automation.

 New Automated GST Rule (Effective March 2025)

From March 2025, the GSTN system is auto-issuing DRC-01C notices based on real-time reconciliation algorithms.

What’s new?

  • You no longer wait for a manual assessment.
  • You’ll receive DRC-01C as soon as the system finds a mismatch.
  • The countdown starts immediately once it lands.

 7-Day Deadline: What You Must Do

Once you receive DRC-01C:

 Step 1: Log in to GST Portal → Services → Returns → Rule 88C intimation
 Step 2: View the difference and justification field
 Step 3: Either:

  • Pay the differential tax via DRC-03, or
  • Submit your explanation if the mismatch is valid (upload proof)

 Deadline: 7 days from issue date
 If no response – system may block your GSTR-1 filing for next period

 Consequences of Ignoring the Notice

  • Automatic restriction on filing GSTR-1
  • Risk of interest and penalty
  • May trigger further audit or scrutiny notices

FAQ

Q1. Can I file GSTR-1 after 7 days of receiving DRC-01C?
No, unless you respond or pay the dues, your GSTR-1 filing access will be blocked.

Q2. What if my difference is due to round-off or credit notes?
You should submit a clear written justification with proof (invoices, adjustments, credit note records).

Q3. What if I missed the notice completely?
You’ll have to file DRC-03 and pay along with applicable interest. Proactive filing is always safer.

Pro Tip: If you’re seeing recurring DRC-01C notices, get your GSTR-1 and 3B auto-reconciled monthly using tools like ClearGST or Zoho Books.

Start reconciling now. As GST moves to more automation, mismatches will not just invite notices—they’ll restrict your ability to do business.

Stay updated. Stay compliant.
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