ITC mismatch intimation (Rule 88D, DRC-01C): how to reply

ITC claimed in GSTR-3B exceeds ITC available in GSTR-2B by more than ₹1 lakh or 20% of 2B ITC, whichever is lower

Filed through GST portal: DRC-01C Part B.

7 days from the notice date. Set by the statute or rules; counted from the notice date.

Unverified: This is to be confirmed against the notified text.

FORM GST DRC-01C Part B: Reply on the input tax credit mismatch, filed through GST portal: DRC-01C Part B.

Unverified: The field list of this form is to be confirmed against the notified text.

• reason code selected, stated explicitly
• invoice- or vendor-wise 2B vs 3B ITC reconciliation table
• DRC-03 reference for any reversal/payment
• note on the ₹1 lakh / 20% threshold basis for the flag

Same discipline as the DRC-01B template but for ITC: reconcile GSTR-2B ITC against GSTR-3B ITC claimed, invoice- or vendor-wise, for the periods flagged (the trigger is excess over ₹1 lakh or 20% of 2B ITC, whichever is lower). Select the applicable reason code and, for any excess accepted, reference the DRC-03 reversal/payment. Keep it factual and complete, the next period's GSTR-1/IFF is blocked until Part B is filed.

1. Reason code and explanation

   Select the applicable reason code on the portal and explain the excess ITC claimed.

2. Invoice/vendor-wise reconciliation

   GSTR-2B vs GSTR-3B ITC reconciliation, invoice or vendor-wise, for the tax period(s) flagged.

3. Payment or reversal of excess ITCOptional

   DRC-03 reference for any excess ITC paid back or reversed on the accepted portion.

4. Prayer

   Request the intimation be closed so the next period's GSTR-1/IFF is not blocked.

• Rule 88D, CGST Rules, 2017