# 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

## Section and form names

- Sections: 88D
- Forms: DRC-01C, GST DRC-01C, FORM GST DRC-01C

## Time limit to reply

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

Unverified: this time limit is to be confirmed against the notified text.

7 days from intimation; Part B mandatory before the next GSTR-1/IFF can be filed

## Reply form

[FORM GST DRC-01C Part B: Reply on the input tax credit mismatch](https://charterai.in/notice/form/gst-drc01c-part-b), filed through GST portal: DRC-01C Part B.

The field list is to be confirmed against the notified text.

## What the reply must include

- 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

## Reply outline

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.

- Reason code and explanation: Select the applicable reason code on the portal and explain the excess ITC claimed.
- Invoice/vendor-wise reconciliation: GSTR-2B vs GSTR-3B ITC reconciliation, invoice or vendor-wise, for the tax period(s) flagged.
- Payment or reversal of excess ITC (optional): DRC-03 reference for any excess ITC paid back or reversed on the accepted portion.
- Prayer: Request the intimation be closed so the next period's GSTR-1/IFF is not blocked.

## Related law

- Rule 88D, CGST Rules, 2017

## FAQ

### What is a ITC mismatch intimation (Rule 88D, DRC-01C)?

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

### What is the time limit to reply to a ITC mismatch intimation (Rule 88D, DRC-01C)?

7 days from the notice date. To be confirmed against the notified text. Set by the statute or rules; counted from the notice date.

### How is the reply to a ITC mismatch intimation (Rule 88D, DRC-01C) filed?

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

### What should the reply include?

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.

Draft this reply: https://charterai.in/sign-up

Canonical: https://charterai.in/notice/gst-itc-mismatch-intimation-rule-88d-drc-01c