Chapter IX

Payment of tax

¹[Rule 88D. Manner of dealing with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return.-

(1) Where the amount of input tax credit availed by a registered person in the return for a tax period or periods furnished by him in FORM GSTR-3B exceeds the input tax credit  available  to  such  person  in  accordance  with  the  auto-generated  statement containing the details of input tax credit in FORM GSTR-2B in respect of the said tax period or periods, as the case may be, by such amount and such percentage, as may be recommended by the Council, the said registered person shall be intimated of such difference in Part A of FORM GST DRC-01C, electronically on the common portal, and a copy of such intimation shall also be sent to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said difference and directing him to— 

      (a) pay an amount equal to the excess input tax credit availed in the said FORM  GSTR-3B,  along  with  interest  payable  under  section  50,  through FORM GST DRC-03, or

      (b) explain the reasons for the aforesaid difference in input tax credit on the common portal,
   
within a period of seven days.

(2) The registered person referred to sub-rule (1) shall, upon receipt of the intimation referred to in the said sub-rule, either,

     (a) pay an amount equal to the excess input tax credit, as specified in Part A of  FORM  GST  DRC-01C,  fully  or  partially,  along  with  interest  payable under  section  50,  through  FORM  GST  DRC-03  and  furnish  the  details thereof in Part B of FORM GST DRC-01C, electronically on the common portal, or

     (b)  furnish  a  reply,  electronically  on  the  common  portal,  incorporating reasons  in respect  of  the amount  of  excess input  tax  credit  that  has  still remained to be paid, if any, in Part B of FORM GST DRC-01C,

within the period specified in the said sub-rule.

(3) Where any amount specified in the intimation referred to in sub-rule (1) remains to be paid within the period specified in the said sub-rule and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be liable to be demanded in accordance with the provisions of section 73 or section 74 ²[or section 74A], as the case may be.]