New GST Rule: Excess ITC Claims in GSTR-3B Trigger Electronic Notice. Pay or Explain Within 7 Days.

When a registered person claims more input tax credit (ITC) in their GST return (FORM GSTR-3B) than is available in the auto-generated statement (FORM GSTR-2B), they will be notified electronically via FORM GST DRC-01C. The person must either pay the excess ITC with interest through FORM GST DRC-03 or explain the discrepancy within seven days. If no action is taken, or if the explanation is unsatisfactory, the amount may be demanded under sections 73 or 74 of the CGST Act. Notifications emphasize the correct reporting of inter-State supplies and ineligible ITC in returns.

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