GST DRC-01C explained: ITC in GSTR-3B higher than GSTR-2B

Why it was issued

GSTR-2B is built from your suppliers' GSTR-1 filings and the actions you take in the Invoice Management System. If you claimed more ITC in GSTR-3B than 2B supports, the system flags the difference through DRC-01C Part A.

Common genuine reasons

For each genuine reason, list the invoices concerned with supplier GSTIN, invoice number, date and tax, and show the month in which they appear in GSTR-2B. Where a bill of entry is involved, give its number and date.

• Supplier filed GSTR-1 late, so the credit appears in a later month's GSTR-2B
• ITC on imports claimed on the basis of the bill of entry before it reflected
• Reverse charge ITC, which does not come through GSTR-2B in the same way
• ITC of an earlier period claimed in this period within the time limit
• Invoice rejected or kept pending in IMS by mistake

How to respond within 7 days

File Part B on the portal. Either pay back the excess through DRC-03 and give the ARN, or explain the difference with an invoice-wise reconciliation, or combine both. Where credit was claimed wrongly, reverse it with interest rather than arguing.

Consequences of not replying

Rule 59(6) blocks filing of GSTR-1 or IFF for the next period until Part B is filed or the amount paid. The unexplained excess can then be taken up in a show cause notice under Section 73, 74 or 74A, with interest and penalty. Avoid repeat intimations by reconciling GSTR-2B and IMS before every GSTR-3B. A professional can prepare the reconciliation and file Part B within the 7-day window.

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.