The Central Board of Indirect Taxes and Customs (CBIC) has notified Rule 88D for the Manner of dealing with differences in Input Tax Credit (ITC) available in Form GSTR 2B and ITC availed in GSTR 3B, through the Central Goods and Services Tax (Second Amendment) Rules, 2023, with effect from 04.08.2023.

As per the rule, where the amount of ITC availed by a registered person for a tax period furnished by him in FORM GSTR-3B exceeds the ITC available to such person in FORM GSTR-2B which contains the details of ITC in respect of the said tax period, 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 GST 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.

The system-based intimation under proposed rule 88D to the relevant registered person may be provided in situations where the difference between the ITC claimed in FORM GSTR-3B and ITC available as per FORM GSTR-2B is greater than 20% as well as more than Rs.25 lakhs, according to the minutes book of the 50th GST Council meeting.

GST Portal is also following the above-mentioned limits. Please note that the word ‘Prescribed’ has not been used in Rule 88D, which means that the limits need not be notified by a separate notification & a recommendation in the Council meeting would suffice.

To Download Council Meeting minutes book, click here.

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