CREDIT CLAIMED IN IGST
This query is : Resolved
31 December 2024
THERE IS A CASE IN WHICH THE CREDIT OF IGST OF RS30600/- EACH HAS BEEN CLAIMED.
BUT ACTUALLY IT HAS TO BE CLAIMED IN CGST AND SGST.
NOW WHAT WE HAD TO SELECT AS PLACE OF SUPPLY WHILE PAYING DRC 03?
BUT ACTUALLY IT HAS TO BE CLAIMED IN CGST AND SGST.
NOW WHAT WE HAD TO SELECT AS PLACE OF SUPPLY WHILE PAYING DRC 03?
12 August 2025
When correcting an error where IGST credit was wrongly claimed instead of CGST and SGST, and you're voluntarily reversing the credit via DRC-03, the Place of Supply (POS) selection is important.
✅ Here's how to approach it:
Scenario:
Wrong credit claimed: IGST ₹30,600
Correct credit should have been: CGST ₹15,300 + SGST ₹15,300
You are using DRC-03 to reverse the wrongly claimed IGST credit.
🔍 What to Select in DRC-03:
1. Type of liability:
Choose "Voluntary payment" or "Audit/Investigation" depending on the context.
2. Section:
Select Section 73 or Section 74 (based on whether fraud is involved; generally, it's Section 73 for non-fraudulent cases).
3. Nature of payment:
Select "Input Tax Credit wrongly availed" or similar.
4. Tax Type to be Paid:
Since the credit wrongly availed was of IGST, you have to reverse IGST in DRC-03. So, select IGST under the tax head.
5. Place of Supply (POS):
Select the POS as per the original invoice where the error occurred.
✅ In other words:
Use the Place of Supply mentioned in the invoice for which the IGST credit was wrongly claimed.
This is because POS determines whether the supply was inter-state (IGST) or intra-state (CGST+SGST). Since you claimed IGST, the original invoice must have shown POS outside your state. But if it was actually a local supply, the invoice itself was incorrect or the accounting was.
📝 After DRC-03 Filing:
You can claim the correct CGST + SGST credit via GSTR-3B in the appropriate return period, if still within the time limits (i.e., before 30 Nov of next FY or filing of annual return, whichever is earlier).
🚫 Don't:
Don't change POS in DRC-03 arbitrarily.
Don't try to reverse IGST and simultaneously claim CGST/SGST in the same DRC-03 — claiming has to happen via returns.
✅ Here's how to approach it:
Scenario:
Wrong credit claimed: IGST ₹30,600
Correct credit should have been: CGST ₹15,300 + SGST ₹15,300
You are using DRC-03 to reverse the wrongly claimed IGST credit.
🔍 What to Select in DRC-03:
1. Type of liability:
Choose "Voluntary payment" or "Audit/Investigation" depending on the context.
2. Section:
Select Section 73 or Section 74 (based on whether fraud is involved; generally, it's Section 73 for non-fraudulent cases).
3. Nature of payment:
Select "Input Tax Credit wrongly availed" or similar.
4. Tax Type to be Paid:
Since the credit wrongly availed was of IGST, you have to reverse IGST in DRC-03. So, select IGST under the tax head.
5. Place of Supply (POS):
Select the POS as per the original invoice where the error occurred.
✅ In other words:
Use the Place of Supply mentioned in the invoice for which the IGST credit was wrongly claimed.
This is because POS determines whether the supply was inter-state (IGST) or intra-state (CGST+SGST). Since you claimed IGST, the original invoice must have shown POS outside your state. But if it was actually a local supply, the invoice itself was incorrect or the accounting was.
📝 After DRC-03 Filing:
You can claim the correct CGST + SGST credit via GSTR-3B in the appropriate return period, if still within the time limits (i.e., before 30 Nov of next FY or filing of annual return, whichever is earlier).
🚫 Don't:
Don't change POS in DRC-03 arbitrarily.
Don't try to reverse IGST and simultaneously claim CGST/SGST in the same DRC-03 — claiming has to happen via returns.
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