During the year 2019-20, I claimed 23000 ITC on vehicle repair/insurance. But now I come to know that ITC on vehicle repair/insurance is not allowable under GST Law. Anybody please suggest me what to do next. I have near about 50000 ITC credit available during the month of September-2020 and have not filed GSTR-3B yet.
17 October 2020
DRC 03 not required adjust it against available credit while filling September GSTR 3 b. Such reversal allowed upto September GSTR 3 b.
19 October 2020
You can either reverse the credit by filing DRC-03 or Reverse the credit in Sept 2020 GSTR-3B.Both are correct. DRC-03 is more better option as it will avoid carry forward effect in Annual Return of FY 19-20.
CAclubindia
