TaxTMI 
TaxTMI 
You have availed excess ITC in GSTR-3B as compared to the tax declared by your suppliers in their GSTR-1 DRC-01 Notice how we have claimed ITC Based on Available purchase bills how to rectify this notice
FY 2021-22 ITC EXCESS CLAIMED SUPPLIER NOT FILLED IN GSTR-1
29 Jul 2025 
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Input Tax Credit condition: supplier payment requirement may force reversal with interest or allow retention with documentary proof.
Where ITC in GSTR 3B exceeds supplier reported figures, taxpayers must reconcile GSTR 3B with GSTR 2A/2B and either reverse wrongly availed credit with interest under Section 50(3) or, if supplier non filing is the cause and valid documents exist, defend retention of lawful ITC by invoking the supplier payment condition in Section 16(2)(c) and relevant judicial precedents supporting bona fide recipients. (AI Summary)
Where ITC in GSTR 3B exceeds supplier reported figures, taxpayers must reconcile GSTR 3B with GSTR 2A/2B and either reverse wrongly availed credit with interest under Section 50(3) or, if supplier non filing is the cause and valid documents exist, defend retention of lawful ITC by invoking the supplier payment condition in Section 16(2)(c) and relevant judicial precedents supporting bona fide recipients. (AI Summary)