Find
If the excess is a genuine mistake, pay it back through DRC-03 with interest under Sec 50(3) if it was used, and quote the ARN in Part B. Paying before a show cause notice avoids penalty in non-fraud cases.
GST
Excess ITC claimed by mistake
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Provisions
Sec 50(3), CGST Act 2017; Rule 88B, CGST Rules 2017; Sec 73, CGST Act 2017
Analysis
If ₹2,00,000 excess was claimed and used for 45 days, interest is about ₹2,00,000 x 18% x 45 / 365, roughly ₹4,438. Paying both through DRC-03 closes the issue at the lowest cost. Waiting for a show cause notice adds penalty risk and more interest.
Close
- Confirm the excess by head
- Check the credit ledger to see if and for how long it was used
- Compute interest under Rule 88B
- Pay tax and interest through DRC-03
- Quote the ARN in Part B and file
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