DRC-01C Notice - What it Means

What does DRC-01C mean?

You claimed more Input Tax Credit (ITC) in GSTR-3B than what is available in your GSTR-2B (auto-generated from your suppliers' filings). This means either your suppliers haven't filed their returns, or you've claimed credit for invoices not reported by suppliers.

What happens if you ignore it

How to respond

The official response form is: Portal response under DRC-01C tab.

• Read the notice carefully and confirm the GSTIN, financial year, and amount match your records.
• Check the underlying mismatch or filing in the GST portal before drafting your reply.
• If the demand is correct, pay via DRC-03 and file the response acknowledging it.
• If the demand is wrong, file the response with supporting documents and reasoning.
• If you are unsure, get a CA to review the notice before the deadline.

Quickest way to handle this

Forward your notice photo to Fylo on WhatsApp. You'll get a personalised explanation referencing the specific amounts, dates, and GSTIN on your notice, plus a draft reply you can copy-paste or hand to your CA - in your preferred Indian language. Free.