The CGST framework is dynamic, evolving to address challenges. Rule 88D is a response to discrepancies between GSTR-2B and GSTR-3B returns. This article delves into the nuances, implications, and insights for taxpayers.

Genesis of Rule 88D

The DRC-01C, “Intimation under Rule 88D: ITC Mismatch GSTR-2B vs GSTR-3B,” marks a new approach to regulate ITC discrepancies, addressing GSTR-1 and GSTR-3B mismatches.

Understanding Rule 88D

Objective: Systematize the notification process for glaring discrepancies.


  1. Intimation via DRC-01C if claimed ITC in GSTR-3B exceeds available ITC in GSTR-2B.
  2. Taxpayer response within a week, providing justification or settling excess ITC.

Rule 88D Implementation

Enforced from 4th August 2023, Rule 88D was conceived in the GST Council’s 50th meeting on 11th July 2023.

Addressing DRC-01C Intimation

Seven-Day Window:

  • Respond within seven days.
  • For interest payments, use DRC-03 form and confirm in Part-B of DRC-01C.

Potential Repercussions

Ignoring DRC-01C may lead to:

  • Barred filing of next GSTR-1.
  • Inability to use Invoice Furnishing Facility (IFF).
  • Demand and recovery provisions triggered, leading to demand notice and adjudication.

Proactive Steps

To evade DRC-01C complications:

  1. Consistently reconcile GSTR-2B with GSTR-3B.
  2. Embrace automation for efficient reconciliations.
  3. Maintain meticulous records for reversals and reclaims.


Understanding Rule 88D is crucial for navigating the GST landscape. With due diligence and proactive measures, taxpayers can ensure transparency and correctness in the Input Tax Credit process.