The system is checking on compliance for Form DRC-01C

The system is checking on compliance for Form DRC-01C

Filing Goods and Services Tax Returns (GSTR) is an integral part of compliance for businesses in India. However, encountering errors while filing can be a common frustration. One such issue that might arise while filing GSTR-1 for October 2023 is related to Form DRC-01C. The error is showing as the system is checking on compliance for Form DRC-01C. Please try to file GSTR1 again after some time .This error may occur due to a discrepancy between the input tax credit (ITC) claimed in GSTR-3B and the ITC available in accordance with the auto-generated statement in GSTR-2B.

As per Rule 88D, if the ITC claimed in GSTR-3B exceeds the available ITC in GSTR-2B, the registered person is intimated of the difference in Part A of FORM GST DRC01C. The steps to rectify this issue involve a systematic approach on the GST portal or utilizing the self-service portal for grievance redressed.

1. One method to address this issue is through the GST portal:

Accessing Tax Liability and ITC Comparison:

Visit the GST portal and navigate to ‘Services,’ then ‘Return,’ followed by ‘Tax Liability and ITC Comparison.’

Select the Financial Year 2023-24 and review the Tax Liability and ITC summary to ensure that the ITC claimed as per GSTR-3B is consistently less than the ITC according to GSTR-2B.

2. Filing a Grievance via Self-Service Portal:

Utilize the self-service portal available at https://selfservice.gstsystem.in/ReportIssue.aspx. Click on ‘Advance Search’ and select ‘No, I want to lodge my complaint.’
Fill in the required details and submit the complaint. After this, wait for a response, which typically takes around 2 days for resolution.

3. Patience and Await Resolution:

Sometimes, waiting for 2-3 days might be a viable option. The tax department might address the issue, making corrections on the portal.

This error generally arises when the ITC claimed in GSTR-3B exceeds the ITC available in GSTR-2B. The correction involves verifying the claimed ITC against the available ITC and addressing any discrepancies. The primary aim is to ensure accurate reporting and compliance with GST regulations.

Remember, this issue might also get rectified automatically by the department. If not, following the outlined steps or waiting for a resolution is advisable. Ensuring correct and reconciled data in GSTR filings is crucial to prevent any potential penalties or issues in the future.

Always keep records of communications, grievance filings, and any actions taken to rectify such errors for future reference and compliance evidence.

Resolving GSTR-1 filing errors related to Form DRC-01C demands attention, but with the right steps, businesses can ensure compliance and accurate reporting in their GST filings.