Explanation
GSTR-1 liability exceeds GSTR-3B — liability mismatch
Trigger: Outward supply liability declared in GSTR-1 exceeds the tax paid in GSTR-3B. The portal auto-generates this when the difference exceeds the specified threshold.
Reply required within: 7 days.
Consequence if ignored: GSTR-1 of the next tax period is blocked. Any ITC availed by the recipient on the basis of the filed GSTR-1 may be under scrutiny.
How to reply: File DRC-01B Part B. Either pay the differential tax (short-paid in 3B), or explain with reason codes — e.g., the 3B was filed with an error, a credit note was issued, advance received, etc.
Prevention: Before filing GSTR-3B, reconcile it against GSTR-1. Use the GSTR-1 vs 3B calculator to identify mismatches.
If ignored
How to respond
File DRC-01B Part B. Either pay the differential tax (short-paid in 3B), or explain with reason codes — e.g., the 3B was filed with an error, a credit note was issued, advance received, etc.
Deadline
You have 7 days from the date of issue to respond. Do not ignore — non-response triggers automatic consequences.