ITC Mismatch (GSTR-2B/3B): GSTN Advisory on Online Compliance

GSTN has issued an advisory for taxpayers to use the new functionality on the GST portal for online compliance related to input tax credit (ITC) mismatch between GSTR-2B and GSTR-3B. This functionality will enable taxpayers to provide explanations for ITC differences online through a simplified process in compliance with GST Council directives.

Automated Intimation in Form GST DRC-01C

i) GSTN has developed a new functionality to generate automated intimations in Form GST DRC-01C when there is a significant difference between ITC available in GSTR-2B and ITC claimed in GSTR-3B.

ii) This feature compares ITC declared in GSTR-3B/3BQ with ITC available in GSTR-2B/2BQ for each tax period.

iii) If the claimed ITC exceeds available ITC beyond a predefined limit, the taxpayer receives a DRC-01C intimation.

Taxpayer Response in Form DRC-01C Part B

i) Upon receiving DRC-01C, the taxpayer must respond using DRC-01C Part B within the stipulated time.

ii) The taxpayer can either make payment to settle the ITC difference using DRC-03, provide an explanation for the difference, or use both options.

Consequences of Non-Response

i) GSTN has reiterated that if no response is filed in DRC-01C Part B, the taxpayer will not be allowed to file subsequent GSTR-1/IFF.

ii) This measure will prevent misuse of input tax credit.

ITC Mismatch (GSTR-2B/3B): GSTN Advisory on Online Compliance


The new functionality for online ITC reconciliation through DRC-01C will enhance compliance and reduce tax leakage. Taxpayers should respond diligently to any intimation received to avoid disruption in return filing.

Related Posts:

Rule 88D of CGST Rules 2017: Manner of Dealing with ITC Differences of GSTR-2B & 3B

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