Fy 22-23 --> tyed more in gst 3b vs 2b, any interest?

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Excess ITC claimed in GSTR 3B over 2B is incorrect and may require reversal. However, if not utilized, no interest is payable under Sec 50. Department may still question it, but position is defensible; advisable to reverse voluntarily.

naresh

naresh (Querist)
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29 March 2026 little complex and silly error made by old CA of my client

we got asmt 10 for fy2223 for writing more in 3b vs 2b. we mistakenly didnt see 2b in fy2223.

but my argument is --> anyways, no one can use this typed 3b (as its restricted to 2b by system only), so i didnt utilise it in subsequent months anyways (i checked i didnt exceed 2b in subsequent months from april 2023 onwards).

so my QUESTION IS , as there is no tax enrichment, can department push for recovery of this excess typed in 3b?

my view--> no because system never allows any excess over 2b anyways, its only showing in minus electronic ledger (which is as good as zero).
but can department charge interest for this excess typing?--> my view, no as its anyways as good as zero , right?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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29 March 2026 • Excess ITC in 3B vs 2B → technically incorrect availment
• Department can ask for reversal
• But since ITC was never utilized,
👉 NO interest is payable (as per Section 50 clarification)
• Your position is legally defensible and strong

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naresh

naresh (Querist)
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29 March 2026 thank u, interest clarification u/s. section 50 is for igst as its central act. any corresponding for cgst/sgst clarification?

Rakesh Mishra

Rakesh Mishra (Expert)
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02 April 2026 System will allow excess 3B vs 2B with highlighting the figures in red color while submitting the returns wo your first argument is quashed. Department will ask for reversal, better you suomoto reverse it. Regarding interest, it will be not levied (say waved off) until you utilize the said excess ITC.

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