Form DRC-01C

In the 50th GST Council meeting held on 11 July 2023, the Indian government introduced a new mechanism to address ITC mismatches between GSTR-2B and GSTR-3B. Subsequently, CGST Rule 88D was notified on 4 August 2023, vide CGST notification 38/ 2023, allowing the GST system to send automatic notifications to taxpayers regarding significant ITC discrepancies between these returns.

If the difference between the ITC available in your GSTR-2B return and the ITC claimed in your GSTR-3B return exceeds a pre-defined limit, you will receive a notification in Form GST DRC-01C.

The ITC mismatch details will be available in Part A of Form DRC-01C. In such cases, you must file Form DRC-01C Part B to provide the necessary details and reconcile the difference.   

Filing Form DRC-01C Part B

To file Form DRC-01C Part B:

Click Return Compliance under Returns


Click View in the ITC Mismatch (DRC-01C) Card List of ARNs

Insight: You can also select from the Reference number, Return period, or Status options at the top and search for the required details.

Reference Number

If you select Reference number, enter the Application Reference Number (ARN) and clcik Search.

Enter the reference number to view its details

If the status of the record is Pending, you can file Form DRC-01C.

Return Period

If you select Return period:

Select the return period to view the ARNs for the period


If you select Status, select either Pending or Completed as the status from the dropdown and click Search.

Select the status to view ARNs with that status

The Form DRC-01C for the ARN entered will be displayed. It contains two parts: Part A and Part B.

Part A contains the section - Intimation of difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return

Part B contains the section - Reply by Taxpayer in respect of the intimation of difference in input tax credit. It is further divided into two sub-parts. In subpart 1, you can make payment for the Difference in ITC. In subpart 2, you can select a Reason for the *Difference in ITC* and provide further explanation for the same.

As a taxpayer, you’ll have to make a payment for the Difference in ITC or select a Reason for the Difference in ITC and provide further explanation for the same in the Part B.

Form DRC-01C

Make Payment for the Difference in Liability Reported

To make payment for the difference in liability reported:

Enter ARN and Click Validate

The summary of the payment details that have been paid through DRC-03 towards the difference in ITC will be displayed.

Payment details of ARN How to resolve 'Please provide valid ARN of DRC-03' error Click 'Click Here For DRC-03' to make payment

Select Reason for the Difference in  ITC

To select a reason for the difference in ITC:

Select the reason for non-payment and provide details Declaration

Note: If you don’t receive the OTP within 30 seconds, you can click Resend OTP to get a new OTP. You request for a new OTP up to 3 times.

Enter the OTP

With this, you have filed your reply for the DRC-01C Part A notification. You can check the status from the Status option.

To know more about Form DRC-01C, read our FAQs on Form DRC-01C.

Warning: If you don’t file a response to Form GST DRC-01C for a previous tax period within 7 days from the date on which you received the notification, then for the subsequent tax period, you will not be able to file your GSTR-1/IFF return. This will continue until you either deposit the amount specified in the notification or provide an explanation for non-payment.

Was this document helpful?
Thank you for your feedback!
Want a feature?
Switch to smart accounting software. Switch to Zoho Books.   Start my free 14-day trial Explore Demo Account


Simplify accounting
and GST filing.