Getting DRC01C error while trying to file gstr1

Quick Summary
Many users are encountering a DRC01C error when trying to file their GSTR1, even for NIL returns. This error typically indicates an Input Tax Credit (ITC) mismatch between GSTR-3B and GSTR-2B. The recommended solution involves filing a report on the GST self-service portal, which has resolved the issue for some within hours. Alternatively, you can address the DRC01C notice directly on the GST portal by explaining the discrepancy or reversing excess ITC.

I also facing the same problem so filed the complaint let us see, by that time if anyone find solution then please leave reply

Error! The system is checking on compliance for Form DRC-01C. Please try to file GSTR1 again after some time

I also facing the same problem so filed the complaint let us see, by that time if anyone find solution then please leave reply

Error! The system is checking on compliance for Form DRC-01C. Please try to file GSTR1 again after some time

Same problem resolved after complaint in self service portal

For this issue grievance can be filed
When grievance is lodge mention that the no DRC 01C applicable is active.

How to check?
Ans . The process is select Service -> Return -> Return compliance -> ITC Mismatch DRC 01C -> View -> return period.
Select FY and return period of each month take a screenshot of the same.
Select status and take screenshot of the same.
This screenshots are mandatory while filing grievance.


 

DRC-01C is an ITC mismatch notice. It blocks GSTR-1 filing until you respond. Here is what to do step by step:

WHY YOU GOT IT: The GST portal detected that the ITC you claimed in GSTR-3B exceeds ITC available in GSTR-2B by more than the permitted limit (either 20% of GSTR-2B credit or Rs. 25 lakh, whichever is lower applies for the specific rule). This triggers an automatic notice.

HOW TO RESPOND (two options):

1. If the difference is genuine (supplier has not filed GSTR-1 yet):
Log in to GST portal. Go to Returns, then Compliance. Open DRC-01C Part B. Select the option that says the ITC difference is due to pending supplier GSTR-1. File Part B. The block on GSTR-1 is lifted and you can file. Note: you will need to reverse the excess ITC in the next GSTR-3B if it is not subsequently validated by the supplier.

2. If you claimed ITC by mistake:
Log in to the portal. Open DRC-01C Part B. Select the option to reverse the excess ITC. File Part B (this adds the reversal to your GSTR-3B). This unblocks GSTR-1.

IMPORTANT: Do not ignore DRC-01C. A non-response within 7 days can result in a demand notice under Section 73 on top of the GSTR-1 block.

For the full GSTR-2B reconciliation process to avoid future DRC-01C notices: [GSTR-2A vs GSTR-2B reconciliation guide](https://taxgarden.in/blog/gstr-2a-vs-gstr-2b-difference-reconciliation-guide)

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