if i have to pay DRC - 03 FOR excess ITC CLAIMED then should i set off the amount with ITC or i have pay it with cash ledger.

Reply—As per provision of section 49(4) of CGST Act, the amount available in the Electronic Credit ledger may be used for making any payment Towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed. See Rule 88A.

Therefore, you can make payment through electronic credit ledger.