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Rule 88C of the CGST Rules, 2017

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GST›CGST Rules, 2017›Chapter IX, Payment of Tax

At a glance

Entitlement and conditions

Rule 88C(3)An amount remaining unpaid after the period is recoverable under section 79 if no explanation is given or the officer finds it unacceptable.

Bars, duties and time limits

Rule 88C(2)The person pays the full or partial difference and interest through FORM GST DRC-03 and gives payment details in Part B of FORM GST DRC-01B, or explains the unpaid part there within the same period.

Procedure, powers and definitions

Rule 88C(1)Tax in FORM GSTR-1, as amended in FORM GSTR-1A, or the Invoice Furnishing Facility is compared with FORM GSTR-3B. The specified excess triggers Part A of FORM GST DRC-01B on the portal and by email, requiring payment with section 50 interest or explanation within seven days.

Rule 88C compares outward-supply tax liability with the liability reported in FORM GSTR-3B for the same period. A difference meeting the Council-recommended amount and percentage triggers an electronic intimation. The registered person has seven days to pay or explain, including reasons for any unpaid part. An unpaid amount with no explanation or an unacceptable explanation becomes subject to section 79 recovery.^[1]

Quick facts

Rule 88C, CGST Rules, 2017

Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return

Provision
Act	Central Goods and Services Tax Rules, 2017
Chapter	IX, Payment of Tax
Rule title	Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return
Amendments
Last amendment	10 July 2024: Inserted vide Notification No. 12/2024 - CT dated 10.07.2024.
Amendments	2 footnotes in the CBIC text (table)
Related provisions
Sections	Section 50 of the CGST Act, 2017, Section 79 of the CGST Act, 2017
Forms named	FORM GST DRC-01B, FORM GST DRC-03, FORM GSTR-1, FORM GSTR-1A, FORM GSTR-3B
Structure 88C(1)Difference by recommended amount and percentage 88C(1)Part A intimation and alternative directions 88C(2)(a)Part B payment details 88C(2)(b)Part B reply with reasons 88C(3)Unpaid amount recoverable under section 79
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]

Text

The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Rules as published in the Gazette of India is the legal source.

Rule 88C, verbatim (show)

Rule 88C

¹[Rule 88 C. Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return.-

(1) Where the tax payable by a registered person, in accordance with the statement of outward supplies furnished by him in FORM GSTR-1 ²[, as amended in FORM GSTR-1Aif any,] or using the Invoice Furnishing Facility in respect of a tax period, exceeds the amount of tax payable by such person in accordance with the return for that period furnished by him in FORM GSTR-3B, 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-01B, 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 the differential tax liability, along with interest under section 50, through FORM GST DRC-03; or

(b) explain the aforesaid difference in tax payable 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 that sub-rule, either,-

(a) pay the amount of the differential tax liability, as specified in Part A of FORM GST DRC-01B, fully or partially, along with interest under section 50, through FORM GST DRC-03 and furnish the details thereof in Part B of FORM GST DRC-01B electronically on the common portal; or

(b) furnish a reply electronically on the common portal, incorporating reasons in respect of that part of the differential tax liability that has remained unpaid, if any, in Part B of FORM GST DRC-01B,

within the period specified in the said sub-rule.

(3) Where any amount specified in the intimation referred to in sub-rule (1) remains unpaid within the period specified in that 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 recoverable in accordance with the provisions of section 79.]

1. Inserted vide Notification No. 26/2022 - CT dated 26.12.2022.

2. Inserted vide Notification No. 12/2024 - CT dated 10.07.2024.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Difference by recommended amount and percentage 88C(1)

Questions to answer on the file10 questions

Is this person registered for the comparison period?
Do the higher-side figures come from this person’s furnished GSTR1, including any GSTR1A amendment, or IFF for this same period?
Was a GSTR1A amendment made for these details?
If so: were the amended details used?
Does the lower-side comparison use the prescribed GSTR3B return for the same period?
What is the tax payable in that GSTR1/GSTR1A or IFF, in rupees?
What is the tax payable in GSTR3B, in rupees?
What is the rupee difference between these matched amounts?
Does the actual difference meet the amount condition in the applicable Council recommendation?
Does the actual difference meet the percentage condition in that same recommendation?

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Part A intimation and alternative directions 88C(1)

Questions to answer on the file10 questions

Was this intimation issued on the common portal to this person?
Is the difference intimation in Part A of FORM GST DRC-01B?
Was the intimation electronic?
Was a copy also sent to the currently provided registration email address?
Does it highlight this difference?
Does it give the alternative of payment of the differential amount or explanation of the difference?
Does its payment direction include interest under section 50?
Does it prescribe FORM GST DRC-03 for payment?
Does it allow explanation through the common portal?
Does the direction state a seven-day period?

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Part B payment details 88C(2)(a)

Questions to answer on the file11 questions

On what date did this person receive the intimation?
On what date was this response furnished?
What date follows the seven-day response period?
Was this response furnished electronically?
Was this response on the common portal?
Was this response in Part B of FORM GST DRC-01B?
Was the differential amount paid fully or partially?
Was interest under section 50 paid with it?
Was that payment through FORM GST DRC-03?
Does Part B furnish details of that actual payment?
On what date was the differential amount and applicable interest actually paid through DRC-03?

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Part B reply with reasons 88C(2)(b)

Questions to answer on the file8 questions

On what date did this person receive the intimation?
On what date was this response furnished?
What date follows the seven-day response period?
Was this response furnished electronically?
Was this response on the common portal?
Was this response in Part B of FORM GST DRC-01B?
Was a reply actually furnished to this intimation?
Does that reply incorporate reasons for the unpaid portion, if any?

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Unpaid amount recoverable under section 79 88C(3)

Questions to answer on the file3 questions

Did an amount in this intimation remain unpaid after the specified period?
Was an explanation or reason furnished by this person for that unpaid amount?
Did the proper officer find the furnished explanation or reason unacceptable?

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Amendment history

The CBIC text carries 2 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.^[1]

Amendments to Rule 88C as footnoted in the CBIC text
Note	Change
1	Inserted vide Notification No. 26/2022 - CT dated 26.12.2022.^[2]
2	Inserted vide Notification No. 12/2024 - CT dated 10.07.2024.^[3]

Provisions connected to Rule 88C
Provision	Connection	Words that tie them
Section 50 of the CGST Act, 2017	this provision requires Section 50 of the CGST Act, 2017	88C(1) "under section 50"
Section 79 of the CGST Act, 2017	this provision requires Section 79 of the CGST Act, 2017	88C(3) "section 79"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Notifications (3)

Number	Date	Subject
Notification No. 12/2024-Central Tax	10 July 2024	Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017.
Notification No. 38/2023-Central Tax	4 August 2023	Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017.
Notification No. 26/2022-Central Tax	26 December 2022	Seeks to make fifth amendment (2022) to CGST Rules

See also

Section 50 of the CGST Act, 2017: interest on delayed payment of tax
Section 79 of the CGST Act, 2017: recovery of tax

References

Central Board of Indirect Taxes and Customs. "Rule 88C. Manner of dealing with difference in liability reported in statement of outward supplies and that reported in return". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 2. Retrieved 17 September 2026.
Notification No. 26/2022-Central Tax, dated 26 December 2022: Seeks to make fifth amendment (2022) to CGST Rules. Cited in CBIC footnote 1.
Notification No. 12/2024-Central Tax, dated 10 July 2024: Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017. Cited in CBIC footnote 2.

External links

CGST Rules, 2017, Rule 88C on the CBIC tax information portal