Answer

1. F

   Facts

   If the period is closed, pay back the excess ITC with interest through DRC-03, choosing the cause that fits, such as GSTR-2B and GSTR-3B mismatch or Voluntary.

2. P

   Provisions and law

   • Rule 142(2) and (3), CGST Rules 2017Payment before or after a notice is intimated in DRC-03; the officer acknowledges it in DRC-04
   • Sec 50, CGST Act 2017Interest at 18 percent a year on tax paid late
   • Sec 16, CGST Act 2017Conditions for ITC
3. A

   Analysis

   The DRC-03 manual lists 'Mismatch between GSTR-2B and GSTR-3B' as a cause. Interest under Sec 50(3) applies if wrong ITC was used. Example: ₹25,000 excess ITC claimed and used in FY 2025-26; pay ₹25,000 plus interest in DRC-03. For the current year you can also reverse in GSTR-3B Table 4B.

4. C

   Conclusion

   1. 1Identify the excess ITC and the months.
   2. 2Decide whether to reverse in GSTR-3B or pay through DRC-03.
   3. 3Calculate interest where credit was used.
   4. 4File DRC-03 and keep the ARN.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.