Explanation
ITC in GSTR-3B exceeds GSTR-2B — auto-notice
Trigger: ITC claimed in GSTR-3B Table 4A exceeds ITC available in GSTR-2B by any amount. The GST portal issues this automatically the moment GSTR-3B is filed with excess ITC.
Reply required within: 7 days.
Consequence if ignored: GSTR-1 of the subsequent month is BLOCKED — you cannot file next month's outward supply return until DRC-01C Part B is filed on the portal.
How to reply: File DRC-01C Part B on the GST portal. Two options: (a) Pay the difference (ITC excess) via DRC-03 challan, or (b) Explain why ITC is legitimate — e.g., supplier has since filed, 2B has an error, ITC is provisional but will be matched later.
Prevention: Before filing GSTR-3B each month, run a GSTR-2B vs 3B reconciliation. Claim only ITC that appears in GSTR-2B. Carry forward the balance to the month when the supplier files.
If ignored
How to respond
File DRC-01C Part B on the GST portal. Two options: (a) Pay the difference (ITC excess) via DRC-03 challan, or (b) Explain why ITC is legitimate — e.g., supplier has since filed, 2B has an error, ITC is provisional but will be matched later.
Deadline
You have 7 days from the date of issue to respond. Do not ignore — non-response triggers automatic consequences.