EXCESS CREDIT REALTED GST REVERSAL
This query is : Open
04 September 2025
An excess amount was mistakenly entered in the IGST column and it was auto adjusted against CGST and SGST. Should the amount be reversed from IGST itself or can it be reversed from where it was used?
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
06 September 2025
Reversal should be made in the ledger from which the credit was actually utilized.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
Since the excess IGST credit was used (auto-adjusted) against CGST and SGST, the reversal should ideally be done by debiting CGST and SGST ledgers where the credit was utilized, not by reversing IGST itself.
Why?
The IGST credit was already consumed against the CGST and SGST liabilities, so to correct the excess, you reverse the credit on the CGST and SGST side.
Practical approach:
Debit CGST and SGST ledgers (where the excess credit was adjusted).
Credit IGST ledger to balance out the excess entry.
Documentation:
Maintain proper records of the reversal for audit and compliance.
08 September 2025
Sir,
have received a GST notice, in which it is said that IGST has been charged more. So I have REVERSE the amount of IGST used from CGST and SGST. So there will be no demand in this, right?
have received a GST notice, in which it is said that IGST has been charged more. So I have REVERSE the amount of IGST used from CGST and SGST. So there will be no demand in this, right?
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