DRC-01 Demand Notice for filing GSTR-9 Wrongly

1029 views 2 replies
User Avatar

Sr
26 Points Joined January 2014

Hello,

I self file GST returns, I filed GSTR-9 erroneously for FY 21-22 without expert knowledge & not filling ITC values, thinking its mandatory even though my turn over is less than 2 crores.

Now, GST officer sent notice under DRC-01 with excess ITC claimed tax demand payment,  solely based on this GSTR-9 return and demanding that I claimed excess tax credit in GSTR-3B as its not matching with GSTR-9.

Does this demand legally valid? As per GST notification this return is not mandatory for me. 

How to reply to this notice? Please, advice.

0 Reply Share Follow
On 10 May 2025 at 18:09 Report
Replies (2)
User Avatar

Master in Accounts & high court Advocate
9434 Points Joined December 2011

The situation you're facing involves a notice under DRC-01 for excess ITC claimed, based on discrepancies between GSTR-3B and GSTR-9. Given that your turnover is less than ₹2 crores and GSTR-9 is not mandatory for you, here's how to approach this: Validity of Demand -

*Non-Mandatory Return*: Since GSTR-9 is not mandatory for taxpayers with aggregate turnover below ₹2 crores, the demand based solely on this return may not be legally valid. -

 *GSTR-3B Prevails*: GSTR-3B is the primary return for monthly tax liability, and ITC claims should be based on this return.

Reply to Notice

1. *Acknowledge the Notice*: Respond to the notice, acknowledging the demand and explaining the situation. 

2. *Explain Non-Mandatory GSTR-9*: Clarify that GSTR-9 is not mandatory for taxpayers with turnover below ₹2 crores and that GSTR-3B is the primary return for tax liability.

 3. *Provide Correct Information*: Submit the correct information based on GSTR-3B, highlighting the ITC claims and tax liability. .

4. 

*Request Reconsideration*: Request the GST officer to reconsider the demand based on GSTR-3B. Supporting Documents - 

*Turnover Proof*: Provide proof of turnover below ₹2 crores for the relevant financial year. - *GSTR-3B Returns*: Submit copies of GSTR-3B returns filed for the relevant period. Additional Advice - 

*Consult a GST Expert*: Consider consulting a GST expert or a chartered accountant to ensure a proper response and to avoid any potential issues. -

 *Timely Response*: Respond to the notice within the specified timeframe to avoid any further complications. By following these steps, you can effectively respond to the notice and potentially resolve the issue [1].

2 Reply
On 10 May 2025 at 22:11
User Avatar

Sr
26 Points Joined January 2014

I have replied to the claim as per your suggestions but the GST officer didn't accept the legality of GSTR-9 if turnover is less than 2 crores & issued show cause notice.

They are still demanding the ITC difference based soley on GSTR-9 and asking for supporting documents etc.

The ITC claimed is less than the ITC available in GSTR-2B but still GST Officer is not considering it.

Reply
On 23 September 2025 at 22:24


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading