ITC

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This discussion addresses the correct treatment of Input Tax Credit (ITC) for the financial year 2017-18 that was claimed in FY 2018-19, even if the expense was recorded in FY 17-18. While the legal availment of ITC is considered correct, it should have been reported in Table 8C of the GSTR9 for 2017-18. It can be shown as current year ITC in the 2018-19 annual return, though incorrect reporting in the prior year's return might lead to penalties depending on the amount.

Vijendra thakkar

Vijendra thakkar (Querist)

11 August 2020 In case GST credit for the period FY 17-18 was not taken in books or GSTR-3B or Annual return (nor shown as ITC on inward supplies received during 2017-18 but availed during April to September, 2018) and the same is taken in FY 18-19 but expense pertaining to the same is considered in FY 17-18.
For Eg:
FY 17-18: Exp. A/c Dr. 118 (Including GST of Rs.18) To Party A/c Cr. 118
FY 18-19 (Sept 18): GST A/c Dr. 18 To Exp. A/c Cr. 18

What is the treatment of such ITC in GSTR9/9C?

Lekhraj sood

Lekhraj sood (Expert)

12 August 2020 You were to show this in table 8C of GSTR9 of 2017-18.

Vijendra thakkar

Vijendra thakkar (Querist)

12 August 2020 Sir, what is the treatment in FY 18-19 since it was not shown in FY 17-18 GSTR-9

Lekhraj sood

Lekhraj sood (Expert)

13 August 2020 You can show it under current year ITC in 2018-19 annual return. Legally the availment of ITC is correct . However,there is wrong reporting in the 2017-18 return.At the most there can be some penalty -depends on the amount involved as well.

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