If you received Form GST DRC-01C, do not pay or admit the mismatch immediately. Download Part A, identify the tax periods and tax heads, reconcile GSTR-3B ITC against the relevant GSTR-2B data and your purchase register, then classify the difference. The GST Portal’s DRC-01C workflow allows the taxpayer to explain the difference or pay the amount, depending on the facts.
The portal wants the ITC difference explained
DRC-01C is not a substitute for an invoice-level reconciliation. Treat the intimation as a trigger to rebuild the exact period.
Taxpayers with GSTR-2B versus GSTR-3B ITC variance
The mismatch may involve claimed ITC, reversals, supplier uploads or other differences captured by portal comparison.
Portal and books do not move at the same speed
Supplier late filing, amendments, credit notes, wrong GSTIN, duplicate booking, ITC reversal/reclaim and period timing are common causes.
Freeze the notice period
Download the notice, archived 2B, GSTR-3B, purchase register, IMS actions and invoice evidence for the same period before making any payment.
| Mismatch bucket | Typical cause | Action |
|---|---|---|
| Timing | Supplier filed/amended later | Document later 2B and eligibility |
| Reversal/reclaim | Credit reversed in another period | Map both return periods |
| Supplier error | Wrong GSTIN/value/credit note | Supplier amendment follow-up |
| Duplicate/ineligible | Book or eligibility problem | Reverse/pay as legally required |
| Unexplained | No supporting record | Investigate before response |
Reconcile → bucket → decide → document
Create buckets for matched eligible, timing, reversed/reclaimed, supplier error, duplicate/ineligible and unexplained. Only the final unexplained/admitted amount should drive payment analysis.
A ₹3 lakh mismatch can contain several different answers
Suppose DRC-01C shows ₹3 lakh excess ITC. Reconciliation finds ₹1.2 lakh supplier invoices reported next month, ₹80,000 already reversed, ₹50,000 duplicate booking and ₹50,000 unsupported. These categories should not be treated as one lump-sum admission.
Portal compliance can escalate
Failure to respond to a system intimation can affect return compliance and may lead to further action. Follow the exact portal due date shown in the intimation.
Every rupee of mismatch gets a bucket
We review notice period, 3B, archived 2B, purchase register, IMS, invoices, reversals/reclaims, supplier amendments and payment history, then prepare the factual response for approval.
What TargoLegal would ask for before filing or responding
The exact pack changes by issue, but these controls prevent the most common hand-off and accountability failures.
The proposed filing, payment, reversal, correction or response should be explained before submission. After filing, retain the ARN/filed PDF and any acknowledgement.
Do not make the problem harder to unwind
Reconcile books and source evidence before deciding tax treatment.
Use the exact period that created the mismatch, notice or filing obligation.
A correction should have a written bridge to the original error.
Save return PDFs, ARN, challans and the approved working.
What to send for a first review
Received DRC-01C? Send the notice PDF and the tax period. The first step is to identify the reconciliation files and mismatch buckets—not to pay blindly.
Related questions
What should I send first?
Send the GSTIN, exact tax period and the document or mismatch that triggered the question. That usually determines the rest of the checklist.
Should I pay before reconciling?
Do not make a blind payment merely because a portal difference appears. Establish the legal and factual basis first, unless an undisputed liability is already clear.
Can the GST Portal data be wrong or incomplete?
Portal data is essential evidence but it still has to be reconciled with books, supplier/customer records and the applicable law.
What should I keep after filing?
Retain the filed return PDF, ARN, payment evidence, reconciliation working and any client-approved summary of adjustments.
When should I involve a GST professional?
Professional review is advisable where the issue affects material tax, ITC, notices, refund, registration status, exports, e-invoicing or multiple return periods.
Official sources used
Legal and portal claims on this page were anchored to the official sources below. Secondary discussions are not used as legal authority.
TargoLegal Research and Editorial Desk · Last legally reviewed: 18 August 2026. GST Portal workflows, notifications and due-date extensions should be rechecked immediately before action.
