19 June 2021
A real estate company opted new scheme which released by department as on 01.04.2019 which is 1% and 5% without ITC. A s on 01.04.2019 there is a balance of rs 7 lakhs in credit ledger and this balance is stil remain in credit ledger. The company neither take any input tax in GSTR-3B nor paid any Liability through credit ledger balance till the period of JAN 2020. But in the period FEB 2020 & March 2020 the GST liability paid in GSTR -3B by the credit ledger.
So the question is '' can we use ITC which is in credit ledger from 01.04.2019 to released gst liability for the current periods '' Q 2 : Should we reverse ITC which stays in credit ledger''
19 June 2021
You cannot use itc to pay taxes.
Reversal of itc is on your option. You may voluntarily reverse it to claim it in p&l.
If you have paid taxes through itc it will not be treated as payment and interest will be applicable.
19 June 2021
@ CA R SEETHARAMAN Utilisation of itc is debarred for real estate companies for new projects as well as those projects (old projects) in which option was taken to pay gst on lower rates.
CAclubindia
