TaxTMI 
TaxTMI 
Can ITC on DRC-03 paid under section 73 after DGGI investigation be availed? Because as per section 17(5) of CGST, ITC paid under section 74 can't be vailed. and if DGGI comes in to picture can payment under section 73 be made? any case law?
ITC on Payment made under section 73 after DGGI Investigation
15 Sep 2026 
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Input tax credit on DRC-03 payments depends on the demand basis and independent eligibility conditions.
Input tax credit on DRC-03 payments depends on the statutory basis of payment and independent fulfilment of credit conditions. Section 17(5)(i) blocks credit for tax paid under Sections 74, 129 and 130, but not expressly under Section 73. Payment under Section 73 does not itself create entitlement. Credit may be available for an eligible inward supply where statutory conditions are met, while amounts paid to reverse wrongly availed credit cannot be reclaimed merely because payment is made under Section 73. (AI Summary)
Input tax credit on DRC-03 payments depends on the statutory basis of payment and independent fulfilment of credit conditions. Section 17(5)(i) blocks credit for tax paid under Sections 74, 129 and 130, but not expressly under Section 73. Payment under Section 73 does not itself create entitlement. Credit may be available for an eligible inward supply where statutory conditions are met, while amounts paid to reverse wrongly availed credit cannot be reclaimed merely because payment is made under Section 73. (AI Summary)
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When an assessee deposits tax on being DETECTED by DGGI, the element of voluntary deposit is absent. Rather, suppression of fact etc. is clearly present. The ingredients of Section 74 are here. So no case law can help in this scenario.
Clear and clean reply.