Upload the intimation, GSTR-2B or GSTR-1, and your Tally register. CATools reconciles every invoice, explains each rupee of the difference, and drafts the Part B reply with an annexure.
You review, decide what to explain or pay, and file.
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A DRC-01C or DRC-01B gives one total difference and seven days to pay or explain it. Finding which invoices make up that number means matching the portal against the books by hand.
3B vs 2B, or GSTR-1 vs 3B. Which invoices cause the gap is left to you.
Download 2B for three months, export the Tally register, VLOOKUP, adjust for reverse charge, late filers and credit notes.
An unanswered DRC-01C can block the next GSTR-1, and an unexplained gap can turn into a show-cause notice.
Doing it by hand first? Read the step-by-step guides: how to reply to a DRC-01C (GSTR-2B vs GSTR-3B) and how to reply to a DRC-01B (GSTR-1 vs GSTR-3B). Not filed yet? check GSTR-3B before filing.
The DRC-01C or DRC-01B PDF. CATools reads the reference, dates, period and amounts; you confirm them.
GSTR-2B (JSON or Excel) and the purchase register for DRC-01C; GSTR-1 and the sales register for DRC-01B. Tally or Busy exports work as they are.
Every rupee of the difference is placed on a line. Choose Explain or Pay per line, copy the Part B reply, download the annexure, and file.
Difference in the notice: ₹1,47,00,000. Every line below comes from matching invoices, and the lines add up to the notice.
| Why the difference arises | Amount (₹) | Treatment |
|---|---|---|
| Reverse charge ITC claimed in GSTR-3B (entered by hand) | 18,00,000 | Explain |
| Invoices in an earlier month's GSTR-2B | 54,00,000 | Explain |
| Supplier filed late: invoice in next month's GSTR-2B | 30,00,000 | Explain |
| In GSTR-2B but not in books (reduces the gap) | −14,40,000 | Explain |
| Invoices not in any GSTR-2B | 32,40,000 | Pay |
| ITC marked 'not available' in GSTR-2B | 18,00,000 | Pay |
| Books show more tax than GSTR-2B on the same invoice | 9,00,000 | Pay |
| Total = difference in the notice | 1,47,00,000 | Explain ₹87.6 L · Pay ₹59.4 L |
Check every line yourself: open this sample (a fictional business) with its notice, GSTR-2B and purchase register files.
Ready to paste into the portal, with amounts by tax head and the legal basis for each explained line.
A PDF reply letter with Annexure A listing every invoice, plus an Excel reconciliation workbook.
Every client's notice in one list, earliest reply date first, with DRC-03 ARN and filing status.
Run the monthly ITC reconciliation before filing GSTR-3B: GSTR-2B against the purchase register, invoice by invoice. Claim only what is in 2B and chase suppliers early.
We're working with a small group of CA firms on real notices. Use CATools free, no card needed, and tell us what works. Pricing will be set with these firms, and early users will be looked after.
Which notices does it handle?
DRC-01C (Rule 88D, ITC in GSTR-3B higher than GSTR-2B) and DRC-01B (Rule 88C, GSTR-1 liability higher than GSTR-3B).
Which files do I need?
The notice PDF, plus GSTR-2B and the purchase register for DRC-01C, or GSTR-1 and the sales register for DRC-01B. Download 2B and GSTR-1 from the portal as JSON or Excel; export registers from Tally or Busy.
Do I need to clean the Tally export?
No. Header rows, ledger-wise tax columns and supplier invoice numbers are handled. Credit and debit notes are picked up too.
Does it file the reply on the portal?
No. You review the draft, choose Explain or Pay for each line, then paste the reply and attach the annexure on the portal yourself.
Who decides what to explain or pay?
You do. CATools suggests a treatment for each line; the reply is a draft for the CA's judgement, not legal advice.
Is client data kept separate?
Each firm sees only its own clients and notices. Download links are signed and expire after an hour.