Under liability declared in 3B, Goods and Services Tax - GST

[Manoj Sharma]

We have filed our 3B return with wrong liability by mistake and immediately recd DRC-01B for the difference amount what is the best way to pay the liability either pay against DRC 01B or in next return?

 

 

Posts / Replies

[Sadanand Bulbule]

Refer the following Section 75(12) of the CGST Act:

(12) Notwithstanding anything contained in section 73 or section 74 or section 74A, where any amount of self-assessed tax in accordance with a return furnished under section 39 remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of Section 79.

Explanation.––For the purposes of this sub-section, the expression “self-assessed tax" shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39.

So better to pay immediately along with interest, if applicable, to prevent recovery proceedings under Section 79.

Section 75(12) being an exclusive section, there is no need to wait for the authorities to recover the "self-assessed unpaid tax/interest amount" under Section 73/74/74A. Impliedly this section indicates that, monthly returns may be filed without whole/part payment of self-assessed tax/interest amount. But liable for recovery under Section 79.

[YAGAY andSUN]

Great question — and a very common situation! Here's a clear, practical answer:

🔔 Situation:

• You filed GSTR-3B with lesser tax liability by mistake.
• You immediately received DRC-01B, which is an intimation of liability mismatch between GSTR-1 and 3B.

✅ Best Way to Handle It:

🥇 Option 1: Pay via DRC-03 in response to DRC-01B (Recommended)

This is the best and cleanest way to resolve the issue.

• File DRC-03 under “Voluntary payment” → “Intimation of tax ascertained through DRC-01B”.
• Pay the shortfall amount along with interest, if applicable.
• This ensures:
  • The matter is closed promptly.
  • You avoid any further notice, penalty, or litigation.
  • It shows your good faith compliance.

📌 Steps:

1. Go to GST Portal → Services → User Services → My Applications → Intimation of Payment (DRC-03).
2. Select "Voluntary Payment", reason as "DRC-01B".
3. Enter period, amount, and pay via electronic cash ledger.
4. Submit the form with valid DSC or EVC.

🥈 Option 2: Pay in Next GSTR-3B (Not Recommended for DRC-01B cases)

• Technically, you can pay the difference in the next GSTR-3B, but:
  • DRC-01B demands a specific reply/payment within 7 days.
  • If not responded to, it can lead to DRC-07 (demand order) with penalty and recovery proceedings.

✅ So unless the shortfall is very small and you’re sure there won’t be any issue, don’t delay.

⚖️ Interest Liability:

• You will likely have to pay interest u/s 50 on the differential amount from the due date of 3B filing till the actual date of payment.
• Pay this along with the tax via DRC-03.

✅ Summary:

Option	Action	Recommended?	Why
Pay via DRC-03 (against DRC-01B)	Immediate payment with interest	✅ Yes	Avoids notices, clean closure
Pay in next GSTR-3B	Delay payment to next month	❌ No	Can lead to DRC-07 & penalty

[Shilpi Jain]

Pay through DRC-03 and give that reference in the reply to DRC-01B.