ITC REVERSAL

This query is : Resolved

Suresh S. Tejwani (Querist)
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24 December 2025 IN THE CASE OF A RESTAURANT BUSINESS PAYING GST @5% WITHOUT ELIGIBILITY TO CLAIM ITC ,WHERE ITC HAS BEEN INADVERTENTLY CLAIMED AND SUBSEQUENTLY REVERSED UNDER WHICH RULE SHOULD SUCH ITC REVERSAL BE REPORTED IN GSTR-9?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 December 2025 For a restaurant business paying GST at 5% (without ITC eligibility), if ITC was inadvertently claimed and later reversed, the reversal must be reported in Table 7H of GSTR‑9 under “Other reversals (Rule 42, Rule 43, and others)”. Since restaurants under 5% GST are not eligible for ITC at all, such reversal is treated as an ineligible ITC reversal and not under Rule 37/37A.

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