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Rule 88D 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 88D(3)An amount still unpaid after the period, without an explanation or with one the officer rejects, is liable to demand under section 73, 74 or 74A, as applicable.

Bars, duties and time limits

  • Rule 88D(2)Full or partial payment uses FORM GST DRC-03, with details in Part B of FORM GST DRC-01C. Reasons for any unpaid amount are furnished in Part B within the same period.

Procedure, powers and definitions

  • Rule 88D(1)The specified excess triggers Part A of FORM GST DRC-01C through the portal and email. It directs payment of the excess with applicable section 50 interest or an explanation within seven days.

Rule 88D compares credit taken in FORM GSTR-3B with credit available in FORM GSTR-2B for the same period or periods. An excess meeting the Council-recommended amount and percentage triggers an intimation and a seven-day response period. The person may pay or explain the difference. An unpaid amount without an acceptable explanation becomes liable to demand under the applicable statutory determination provision.[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 88D, verbatim (show)

Rule 88D

1[Rule 88D. Manner of dealing with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return.-

(1) Where the amount of input tax credit availed by a registered person in the return for a tax period or periods furnished by him in FORM GSTR-3B exceeds the input tax credit available to such person in accordance with the auto-generated statement containing the details of input tax credit in FORM GSTR-2B in respect of the said tax period or periods, as the case may be, 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 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 an amount equal to the excess input tax credit availed in the said FORM GSTR-3B, along with interest payable under section 50, through FORM GST DRC-03, or

(b) explain the reasons for the aforesaid difference in input tax credit 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 the said sub-rule, either,

(a) pay an amount equal to the excess input tax credit, as specified in Part A of FORM GST DRC-01C, fully or partially, along with interest payable under section 50, through FORM GST DRC-03 and furnish the details thereof in Part B of FORM GST DRC-01C, electronically on the common portal, or

(b) furnish a reply, electronically on the common portal, incorporating reasons in respect of the amount of excess input tax credit that has still remained to be paid, if any, in Part B of FORM GST DRC-01C,

within the period specified in the said sub-rule.

(3) Where any amount specified in the intimation referred to in sub-rule (1) remains to be paid within the period specified in the said 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 liable to be demanded in accordance with the provisions of section 73 or section 74 2[or section 74A], as the case may be.]

1. Inserted vide Notification No. 38/2023 - CT dated 04.08.2023.

2. Inserted (w.e.f. 01.11.2024) ) vide Notification No. 20/2024-CT dated 08.10.2024.

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 88D(1)

Questions to answer on the file8 questions
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Part A intimation and alternative directions 88D(1)

Questions to answer on the file10 questions
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Part B payment details 88D(2)(a)

Questions to answer on the file11 questions
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Part B reply with reasons 88D(2)(b)

Questions to answer on the file8 questions
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Unpaid amount liable to be demanded 88D(3)

Questions to answer on the file3 questions
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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 88D as footnoted in the CBIC text
NoteChange
1Inserted vide Notification No. 38/2023 - CT dated 04.08.2023.[2]
2Inserted (w.e.f. 01.11.2024) ) vide Notification No. 20/2024-CT dated 08.10.2024.[3]
Provisions connected to Rule 88D
ProvisionConnectionWords that tie them
Section 50 of the CGST Act, 2017this provision requires Section 50 of the CGST Act, 201788D(1) "under section 50"
Section 73 of the CGST Act, 2017this provision requires Section 73 of the CGST Act, 201788D(3) "section 73"
Section 74 of the CGST Act, 2017this provision requires Section 74 of the CGST Act, 201788D(3) "section 74"
Section 74A of the CGST Act, 2017this provision requires Section 74A of the CGST Act, 201788D(3) "section 74A"

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 (2)

NumberDateSubject
Notification No. 20/2024-Central Tax8 October 2024Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017
Notification No. 38/2023-Central Tax4 August 2023Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017.

See also

References

  1. Central Board of Indirect Taxes and Customs. "Rule 88D. Manner of dealing with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 2. Retrieved 17 September 2026.
  2. Notification No. 38/2023-Central Tax, dated 4 August 2023: Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017. Cited in CBIC footnote 1.
  3. Notification No. 20/2024-Central Tax, dated 8 October 2024: Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017. Cited in CBIC footnote 2.

External links