How to show reversal of ITC in GSTR 9C

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This discussion addresses how to report the reversal of Input Tax Credit (ITC) for cess incorrectly availed on a car purchase in GSTR 9C. While the reversal was made in the subsequent month's 3B, it appeared as a cess liability. The advice given is not to show it as a liability in GSTR 9C, but rather declare it as ineligible ITC, noting the reversal in the relevant 3B. However, it's noted that GSTR 9C might automatically display this as a rate-wise liability.

CA Parul Saxena

CA Parul Saxena (Querist)
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26 December 2023 A car was purchased and cess of Rs.2Lakhs was there in default 3B and by mistake i availed it. Then in next month return i show reversal of cess and this automatically shown as cess liability in payment section.
My question is now in GSTR9C whether to show this Rs.2Lakhs as liability in 9Q?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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28 December 2023 No need to show it as liability as you have already done reversal. you can declare it as an ineligible ITC and mention that the same has been reversed in particular months' 3B.

CA Parul Saxena

CA Parul Saxena (Querist)
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28 December 2023 But in 9C it is automatically shown in ratewise liability declaration...

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