EXCESS CREDIT TAKEN OF ITC IN GSTR-3B

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This query is : Resolved

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If you've claimed excess IGST Input Tax Credit (ITC) in your GSTR-3B for FY 2019-20 and wish to reverse it in FY 2020-21, you have a couple of options. While you can use the DRC-03 form for voluntary disclosure and payment, it's often sufficient to simply reverse the excess ITC directly in your current month's GSTR-3B filing. Reversing via GSTR-3B is a straightforward method and doesn't require specific remarks.

satish kumar Chauhan

satish kumar Chauhan (Querist)
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17 May 2020 Dear sir
We have taken excess credit of ITC of Rs 2500/- of IGST in GSTR-3B during FY 2019-20 and want to reverse the same in FY 2020-21. In this case am i liable to pay Tax through DRC-03 or not. Pl advice me proper treatment of this error in coming GSTR-3B etc.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 May 2020 No need of DRC 03. Reverse it in current month GSTR 3 b and pay through GSTR 3 b.

PAWAN KUMAR

PAWAN KUMAR (Expert)
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17 May 2020 in both the ways, itc can be reversed. There is no issue. DRC-03 is voluntary basis and in this case an intimation with ARN will be generated and communicated to your jurisdictional CGST office. but in GSTR-3B, reversal of ITC can be done and no such remarks can be put. You need to disclose this itc to your CGST Range.
Option is available with you to choose which is the best.

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