Rule 88D: intimation of excess ITC over GSTR-2B

What happens under Rule 88D

The system compares credit claimed in GSTR-3B with GSTR-2B for a period or set of periods. If the excess crosses the limits, DRC-01C Part A shows the difference. In Part B the taxpayer must, within 7 days, either reverse or pay the excess with interest through DRC-03, or explain why the claim is correct.

If the amount is neither paid nor explained, or the explanation is not accepted, the officer can start demand proceedings under Section 73, 74 or 74A depending on the period. The portal may also restrict further filings until a response is given.

Common genuine reasons

• Import IGST credit claimed before it appeared in GSTR-2B.
• Reverse charge credit, which does not come from a supplier's GSTR-1.
• Credit of an earlier period claimed in the current period, as allowed by Section 16(4).
• Credit re-claimed after an earlier Rule 37A reversal.
• ISD credit received through the distributor's return.

Preparing the reply

Give a table that bridges GSTR-3B credit to GSTR-2B, invoice by invoice for any significant items, with bills of entry, self invoices and earlier GSTR-2B references. A professional can prepare the reconciliation and file the Part B response within the 7 days.

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.