Form DRC-01C (Rule 88D)
Form DRC-01C is a system-generated intimation, issued under Rule 88D, that flags an excess of ITC claimed in GSTR-3B over the credit available in GSTR-2B.
DRC-01C is the portal's automatic ITC-mismatch notice under Rule 88D. It fires when the ITC you claim in GSTR-3B runs ahead of your GSTR-2B credit beyond a threshold the portal does not publish — Rule 88D fixes no figure, and GSTN describes it only as a predefined limit and a configurable threshold. You must reply in Part B within 7 days — either pay with interest or explain — or your next GSTR-1 is blocked.
Rule 88D turns the GSTR-2B-versus-3B gap into an enforceable, automated check. The moment your claimed credit runs ahead of GSTR-2B beyond the applicable threshold, DRC-01C lands, and the clock starts. Within seven days you either pay back the excess with interest and report it in Part B, or you furnish reasons — a supplier who filed late, a timing difference, and so on.
Ignore it and the consequences bite: you are barred from filing the next period's GSTR-1 until you respond, and unexplained excess can escalate to a formal demand (Section 73/74 for periods up to FY 2023-24, or the unified Section 74A for FY 2024-25 onwards). This is why 2B reconciliation must happen before filing, not after. It sits alongside GSTR-3B hard-locking in the portal's tightening ITC controls. Documenting a standing reason for each recurring timing difference — a supplier who habitually files late, say — turns a seven-day scramble into a routine reply.
The Recoup angle: Recoup computes your 2B-versus-3B gap pre-filing, so you either fix the mismatch or draft the DRC-01C explanation in advance.