Answer

1. F

   Facts

   Rule 88D sends DRC-01C when ITC in GSTR-3B exceeds GSTR-2B beyond the notified limit. You must pay the excess with interest through DRC-03 or explain the difference in Part B within 7 days.

2. P

   Provisions and law

   • Rule 88D, CGST Rules 2017Where ITC in GSTR-3B exceeds ITC in GSTR-2B beyond the notified limit, an intimation in DRC-01C asks the person to pay or explain within 7 days.
   • Rule 59(6), CGST Rules 2017GSTR-1 is blocked in specified cases, such as unfiled GSTR-3B or an unexplained DRC-01B or DRC-01C intimation.
   • Sec 50(3), CGST Act 2017Interest is payable on ITC wrongly availed and utilised, from the date of utilisation till reversal, at the notified rate (18 percent a year).
3. A

   Analysis

   Valid reasons include RCM credit, import credit, credit of earlier months claimed now, or ITC that appeared in a later 2B. List each difference with invoice details. If you over-claimed, pay through DRC-03 with interest and mention it in Part B. Not responding can block your next GSTR-1. The limit currently notified is understood to be ₹25 lakh and 20 percent; check the latest notification.

4. C

   Conclusion

   1. 1Download DRC-01C and compare 3B ITC with 2B for the period.
   2. 2Prepare a list explaining each difference.
   3. 3Pay any wrong excess through DRC-03 with interest.
   4. 4File Part B with the explanation or payment details within 7 days.

Ignoring DRC-01C blocks GSTR-1 for the next period.

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