DRC-01C Reply Format 2026
REPLY TO INTIMATION OF DIFFERENCE IN INPUT TAX CREDIT — PART B OF FORM GST DRC-01C
[Reply under Rule 88D(2) of the CGST Rules, 2017 — input tax credit availed in FORM GSTR-3B in excess of that available in FORM GSTR-2B]
To,
{{officer_designation}}
Registered person: {{client_name}} | GSTIN: {{client_gstin}}
Reference no. of intimation (Part A): {{notice_ref}} dated {{notice_date}}
Tax period(s): {{tax_period}}
Sir / Madam,
1. Part A of the above intimation states that the input tax credit availed in FORM GSTR-3B for the tax period(s) {{tax_period}} exceeds the input tax credit available as per the auto-generated statement in FORM GSTR-2B by ₹ {{difference_amount}}. The figures, as verified with our records, are:
| Particulars | IGST (₹) | CGST (₹) | SGST / UTGST (₹) | Cess (₹) | Total (₹) |
|---|
| ITC available as per FORM GSTR-2B | | | | | |
| ITC availed as per FORM GSTR-3B | | | | | |
| Excess ITC as per Part A | | | | | {{difference_amount}} |
| Less: paid / reversed through FORM GST DRC-03 (Section A below) | | | | | |
| Balance explained in Section B below | | | | | |
A. Amount paid through FORM GST DRC-03
2. To the extent the excess represents credit not admissible, we have paid an amount equal to that credit, together with interest payable under section 50, and the details are: [delete this section if nothing is payable]
| ARN of FORM GST DRC-03 | Paid under head | Tax period | IGST (₹) | CGST (₹) | SGST / UTGST (₹) | Cess (₹) | Interest (₹) |
|---|
| ____________ | Tax / Interest | {{tax_period}} | | | | | |
B. Reasons for the part of the excess that remains to be paid
3. The balance does not represent inadmissible credit. The reasons, under the heads listed in Part B of the form, are: [fill in only the rows that apply; the "Details" column is mandatory on the portal for every reason selected]
| S. No. | Reason (as listed in Part B) | ITC explained (₹) | Details |
|---|
| 1 | Input tax credit not availed in earlier tax period(s) due to non-receipt of inward supplies of goods or services in the said tax period (including receipt of goods in instalments) | ____________ | Invoices appearing in FORM GSTR-2B of ____________ [month] were not claimed then because the goods were received / the last lot was received on ____________. Credit claimed in the present period on receipt. List with GRN dates at Annexure 1. |
| 2 | Input tax credit not availed in earlier tax period(s) inadvertently or due to mistake or omission | ____________ | Invoices appearing in FORM GSTR-2B of ____________ [month] were omitted from FORM GSTR-3B of that month and are claimed now, within the time limit in section 16(4). List at Annexure 1. |
| 3 | ITC availed in respect of import of goods, which is not reflected in FORM GSTR-2B | ____________ | IGST of ₹ ____________ paid on bills of entry nos. ____________ dated ____________, port code ____________. Copies of bills of entry and payment challans at Annexure 2. |
| 4 | ITC availed in respect of inward supplies from SEZ, which are not reflected in FORM GSTR-2B | ____________ | IGST of ₹ ____________ paid on bills of entry nos. ____________ for supplies received from ____________ (SEZ unit). Copies at Annexure 2. |
| 5 | Excess reversal of ITC in previous tax periods which is being reclaimed in the current tax period | ____________ | ITC of ₹ ____________ was reversed in Table 4(B)(2) of FORM GSTR-3B of ____________ [month] and is re-claimed in Table 4(A)(5) of the present return, disclosed in Table 4(D)(1). Extracts at Annexure 3. |
| 6 | Recredit of ITC on payment made to supplier, in respect of ITC reversed as per rule 37 in earlier tax period | ____________ | ITC of ₹ ____________ reversed under Rule 37 in ____________ [month] for non-payment within 180 days; the supplier was paid on ____________ and the credit is re-availed. Payment proof at Annexure 4. |
| 7 | Recredit of ITC on filing of return by the supplier, in respect of ITC reversed as per rule 37A in earlier tax period | ____________ | ITC of ₹ ____________ reversed under Rule 37A in ____________ [month]; the supplier (GSTIN ____________) has since furnished FORM GSTR-3B for ____________ and the credit is re-availed. |
| 8 | FORM GSTR-3B filed with incorrect details and will be amended in next tax period (including typographical errors, wrong tax rates, etc.) | ____________ | ITC was entered as ₹ ____________ instead of ₹ ____________ in Table 4(A) owing to ____________. The excess of ₹ ____________ will be reversed in Table 4(B) of FORM GSTR-3B of ____________ [month] / has been reversed through FORM GST DRC-03, ARN ____________. |
| 9 | Any other reasons (please specify) | ____________ | ____________ |
4. The reasons at Section B account for the whole of the remaining excess of ₹ ____________. Without prejudice, the balance in the electronic credit ledger did not fall below ₹ ____________ at any time after the credit was availed; to that extent the credit, even if held inadmissible, has not been utilised and no interest under section 50(3) arises.
5. It is requested that the explanation be accepted, that no demand be raised in terms of Rule 88D(3), and that the restriction under Rule 59(6)(e) on furnishing FORM GSTR-1 / IFF for the subsequent tax period be lifted.
Verification
I, {{signatory_name}}, hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.
Place: __________________
Date: 1 October 2026
For {{client_name}}
_______________________________
{{signatory_name}}
{{signatory_designation}} — Authorised Signatory
Annexure 1 — Invoice-wise reconciliation of ITC claimed outside the GSTR-2B of the period
| Sl. | Supplier GSTIN | Invoice / BoE no. and date | Tax (₹) | GSTR-2B period in which reflected | Reason code (Section B) | Remarks |
|---|
| 1 | | | | | | |
| 2 | | | | | | |
| 3 | | | | | | |
| Total explained | | | | | |
| Excess as per Part A | | {{difference_amount}} | | | |
| Unexplained balance (should be nil) | | | | | |
- Drafting hint: seven days from the intimation, with no extension in Rule 88D. File Part B on the portal first (Services → Returns → Return Compliance → ITC Mismatch (DRC-01C)); this letter is the working behind the entries.
- Drafting hint: "the supplier has not yet filed, the invoice will appear in a later GSTR-2B" is not one of the listed reasons, and credit is conditional on the invoice being communicated in GSTR-2B (section 16(2)(aa)). Where that is the real cause, the safer course is to reverse now through DRC-03 and re-claim when the invoice appears.
- Drafting hint: interest is where the money is. Under section 50(3) and Rule 88B(3) interest runs only on credit wrongly availed and utilised — check the lowest balance in the electronic credit ledger before computing it.
- Drafting hint: if the reply is not accepted, the next step is a show cause notice under section 73, 74 or 74A, not recovery. Keep the annexures filed here — they become the first exhibit in that reply.
