Excess ITC credit claimed

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A client accidentally claimed an excess Input Tax Credit (ITC) of Rs. 10,000 in their March 2021 GSTR-3B return. The question is whether to rectify this immediately using Form DRC-03 or if it can be settled in the April 2021 return, considering the financial year change. The advice given is to use DRC-03 to avoid mismatches across financial years.

DIVYESH JAIN

DIVYESH JAIN (Querist)

19 May 2021 Dear Sir,

One of my client has claimed excess itc of Rs. 10,000 by mistake in the month of March 2021 while filing GSTR-3B return. His return is filed on a monthly basis.

Should my client file DRC-03 for March 2021 by making the payment of the excess credit claimed or this liability can be paid in April 2021 also.

Please suggest as in April 2021 the financial year changes.

Regards,
Divyesh Jain

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

19 May 2021 ITC can also be reversed in April return

CA Altamush Zafar

CA Altamush Zafar (Expert)

19 May 2021 Better to make payment through DRC-03 since there has been change in the financial year. This way only one financial year will have mismatch between return and books otherwise both the FY will get impacted

DIVYESH JAIN

DIVYESH JAIN (Querist)

19 May 2021 Thanks for your reply

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