Unclaimed ITC relates to FY2023-24 reclaimed in October-2024 but failed to reverse the same
This query is : Resolved
24 December 2024
Good morning sir/s,
In one of my case due to hurry in filing and pressurised by the department un claimed ITC relates to FY2023-24 reclaimed in October-2024 but failed to reverse the same, can we reverse the same in December-2024, since November-2024 return 3B is also filed,
please guide me in this regard (actually the un claimed was ineligible, and party left out the same, but department people called the party and asked to reclaim and reverse the same, in hurry forgot to reverse)
In one of my case due to hurry in filing and pressurised by the department un claimed ITC relates to FY2023-24 reclaimed in October-2024 but failed to reverse the same, can we reverse the same in December-2024, since November-2024 return 3B is also filed,
please guide me in this regard (actually the un claimed was ineligible, and party left out the same, but department people called the party and asked to reclaim and reverse the same, in hurry forgot to reverse)
12 August 2025
Good morning!
This is a common issue, and here’s how you can handle it practically and compliantly:
Situation Recap:
ITC pertaining to FY 2023–24 (unclaimed earlier) was reclaimed in October 2024 (i.e., claimed in GSTR-3B of Oct 2024).
You forgot to reverse this ITC in the next month (Nov 2024) as required.
Now you want to reverse it in Dec 2024 after filing Nov return.
✅ What the GST Law Says:
As per Section 16(2)(aa) and Rule 37, if ITC is wrongly claimed or ineligible, reversal must be done in the next tax period after the month in which ITC was claimed.
Failure to reverse timely attracts interest @18% on the amount from the date of claim till reversal.
The reversal can be made in any subsequent return, but interest will be calculated accordingly.
✅ What You Can Do Now:
1. Reverse ITC in December 2024 GSTR-3B return (since Nov is already filed)
You can reverse the ITC in Dec 2024 by showing the amount in “ITC Reversed” or “Ineligible ITC” section.
This will adjust your liability and reduce any compliance issues going forward.
2. Pay interest for delayed reversal
Calculate interest @18% from the date of claim (Oct 2024) till the date of actual reversal (Dec 2024).
Pay this interest while filing the return or via challan ITNS 280 under appropriate head.
✅ Summary Table:
Action Details
Reverse ITC In Dec 2024 GSTR-3B
Interest @18% from Oct 2024 to Dec 2024 on reclaimed ITC
Compliance Maintain documentation & show interest payment proof
Additional Note:
Since the department prompted you to reclaim and reverse, it’s advisable to maintain communication records for audit purposes.
If there is any penalty or dispute, you can rely on this cooperation.
This is a common issue, and here’s how you can handle it practically and compliantly:
Situation Recap:
ITC pertaining to FY 2023–24 (unclaimed earlier) was reclaimed in October 2024 (i.e., claimed in GSTR-3B of Oct 2024).
You forgot to reverse this ITC in the next month (Nov 2024) as required.
Now you want to reverse it in Dec 2024 after filing Nov return.
✅ What the GST Law Says:
As per Section 16(2)(aa) and Rule 37, if ITC is wrongly claimed or ineligible, reversal must be done in the next tax period after the month in which ITC was claimed.
Failure to reverse timely attracts interest @18% on the amount from the date of claim till reversal.
The reversal can be made in any subsequent return, but interest will be calculated accordingly.
✅ What You Can Do Now:
1. Reverse ITC in December 2024 GSTR-3B return (since Nov is already filed)
You can reverse the ITC in Dec 2024 by showing the amount in “ITC Reversed” or “Ineligible ITC” section.
This will adjust your liability and reduce any compliance issues going forward.
2. Pay interest for delayed reversal
Calculate interest @18% from the date of claim (Oct 2024) till the date of actual reversal (Dec 2024).
Pay this interest while filing the return or via challan ITNS 280 under appropriate head.
✅ Summary Table:
Action Details
Reverse ITC In Dec 2024 GSTR-3B
Interest @18% from Oct 2024 to Dec 2024 on reclaimed ITC
Compliance Maintain documentation & show interest payment proof
Additional Note:
Since the department prompted you to reclaim and reverse, it’s advisable to maintain communication records for audit purposes.
If there is any penalty or dispute, you can rely on this cooperation.
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