What triggers an automated Form DRC-01C intimation notice?

Form DRC-01C is automatically issued by the GST portal when GSTR-3B claimed ITC exceeds GSTR-2B eligible ITC by a predefined threshold (typically > ₹1 Lakh or > 20% gap).

What is the deadline to reply to a Form DRC-01C notice?

You must submit Part B of Form DRC-01C within 7 calendar days of receiving the notice. Failure to do so blocks GSTR-1/IFF filing for subsequent tax periods.

How does Tally Prime categorize imported GSTR-2B JSON data?

Tally Prime automatically sorts records into 4 categories: Matched, Mismatched (date/value mismatch), Missing in Books (portal only), and Missing in GSTR-2B (books only).

How does TrulyInvoice prevent supplier invoice mismatches?

TrulyInvoice AI parses supplier PDFs, auto-extracts line items, and posts verified F9 Purchase Vouchers directly into Tally Prime via Port 9000 local sync, ensuring 100% data alignment with supplier invoices.

GSTR-2B Reconciliation & Resolving Supplier Mismatches (2026 SOP)

Quick Summary: How Should Businesses Handle GSTR-2B Supplier Mismatches?

Download the static GSTR-2B JSON on the 14th of every month. Import into Tally Prime's GSTR-2B Reconciliation module. Categorize discrepancies: for missing/mismatched supplier bills, use IMS to Reject or mark Pending, and alert suppliers to issue GSTR-1A amendments. Reply to Form DRC-01C within 7 days if flagged.

Section 16(2)(aa): Mandates 100% GSTR-2B matching before claiming ITC in GSTR-3B.
Form DRC-01C: Triggered when GSTR-3B ITC exceeds GSTR-2B by > ₹1L or > 20%.
7-Day Reply Deadline: Must submit Part B explanation or pay tax via DRC-03.
Tally Import: Alt+O > Import GST Returns imports downloaded portal JSON files.

1. The 4 Common Types of GSTR-2B Supplier Mismatches

When performing monthly GSTR-2B purchase reconciliation, mismatches fall into four distinct categories:

Mismatch Category	Root Cause Description	Recommended SOP Resolution
1. Missing in GSTR-2B	Supplier failed to file GSTR-1/IFF by the 13th cutoff date	Defer ITC; request supplier to file GSTR-1 / GSTR-1A
2. Tax Value Mismatch	Data entry typo in taxable value or GST rate by supplier/accountant	Reject in IMS; request supplier GSTR-1A amendment
3. Wrong GSTIN Billed	Supplier uploaded bill against another taxpayer's GSTIN	Reject in IMS immediately to force supplier cancellation
4. Goods in Transit	Invoice uploaded in M1, but physical goods received in M2	Mark 'Pending' in IMS under Section 16(2)(b)

2. Form DRC-01C Notice Response Protocol

If your GSTR-3B ITC exceeds GSTR-2B, the GST portal issues an automated Form DRC-01C (Part A). Follow this 3-step response protocol:

Go to Services > Returns > Return Compliance > ITC Mismatch (DRC-01C).
Select the notice ARN and click Reply (Part B).
Select reason: Import of Goods, Re-credit of ITC (Rule 37/37A), Clerical Typo, or Payment via DRC-03. Submit using EVC/DSC within 7 days.

Automate Purchase Bill Verification for Tally Prime

Prevent internal clerical data entry typos that cause GSTR-2B mismatches.

Data entry mistakes in purchase vouchers (typing errors in invoice numbers or date formats) prevent Tally Prime from auto-matching GSTR-2B entries.

TrulyInvoice AI Automation: Upload supplier PDF bills or WhatsApp scans. AI auto-extracts line items and posts F9 Purchase Vouchers directly to Tally Prime in 15 seconds via Port 9000 local sync.