EXCESS LIABILITY & EXCESS ITC CLAIMED FOR SAME AMOUNT DUE TO CLERIKAL MISTAKE IN THE YEAR 2017-18

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A clerical error in 2017-18 led to claiming the same amount for both excess liability and excess Input Tax Credit (ITC). The user has received a notice under Section 61 and is seeking advice on how to proceed. The suggested approach is to explain that the transaction is revenue-neutral, as the excess liability was offset by the excess ITC, resulting in a net nil effect.

RAHUL SAHU

RAHUL SAHU (Querist)
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22 August 2022 EXCESS LIABILITY & EXCESS ITC CLAIMED FOR SAME AMOUNT DUE TO CLERIKAL MISTAKE IN THE YEAR 2017-18
SIR DUE TO CLERICAL MISTAKE I HAVE TAKEN 2 LACS IN LIABILTY AND SAME EXCESS ITC HAS BEEN TAKEN.
NOW WE HAVE RECEIVED NOTICE U/S 61
WHAT TO DO IN BEST

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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22 August 2022 In my opinion You can reply saying that it is a revenue neutral transaction since 2 lacs were excess declared in liability and same amount was taken in input tax credit so eventually the net effect is nil. since the excess amount is set off by excess input tax credit.

RAHUL SAHU

RAHUL SAHU (Querist)
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23 August 2022 Is there any notification/Rule

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