GST problem guide · updated October 2026

DRC-01C because Input Service Distributor credit is missing

Branches that receive credit from an Input Service Distributor (ISD) see it in GSTR-2B only after the ISD files GSTR-6 with the distribution. If the branch claims the credit before that, or the ISD distributes a different amount, the branch's GSTR-3B looks excess.

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How ISD credit flows

An ISD registration receives invoices for common services and distributes the credit to branch GSTINs through ISD invoices reported in GSTR-6. From 1 April 2025, distribution of common input services through ISD is mandatory where the conditions apply. The branch gets the credit in its GSTR-2B for the period in which the ISD reports it.

Mismatches occur when the branch accounts for the share based on an internal allocation sheet while the ISD files GSTR-6 late, or with a different allocation.

Steps to resolve

  • Check the ISD credit section of the branch's GSTR-2B for the period and the following months.
  • Obtain the ISD's GSTR-6 and the ISD invoices issued to the branch.
  • Match amounts head-wise. If GSTR-6 was filed late, the credit appears later; explain the timing in Part B.
  • If the ISD distributed a smaller amount, the branch should reduce its claim, through DRC-03 for the flagged period.
  • If the ISD did not file GSTR-6, it must do so; meanwhile the branch should treat the credit as not yet available.

Deadline

The branch must reply to DRC-01C within 7 days, even though the fix depends on the ISD.

What to avoid

  • Taking credit on common services directly at branch level from head office invoices that should go through ISD.
  • Different allocation keys at the ISD and in branch books.
  • Delaying GSTR-6 filing at the head office.

Support

A professional can align ISD distribution with branch claims across all registrations and prepare replies for each branch that received an intimation.

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.

Questions

ISD credit not in GSTR-2B — FAQs

When does ISD credit appear in the branch GSTR-2B?+
In the period in which the ISD reports the distribution in GSTR-6.
Can a branch claim ISD credit before GSTR-6 is filed?+
It should not. Until the ISD invoice reflects in GSTR-2B, the credit is not available to the branch.
Who replies to the DRC-01C, branch or ISD?+
The branch GSTIN that received the intimation must reply, using documents from the ISD.
Can the ISD correct an allocation after filing GSTR-6?+
An ISD can issue ISD credit notes or revised distribution through later GSTR-6 returns where the rules permit. The branch then sees the revised figure in a later GSTR-2B and should align its books with that figure rather than the internal allocation sheet.
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