ITC Claim Help

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This query is : Resolved

Quick Summary

A business purchased materials invoiced on March 6th, 2023, but the goods were scrapped by the seller and never received. A credit note was issued in April 2023. The GSTR-2B still shows the original invoice's ITC as claimable. The user is seeking advice on whether to reverse the ITC now, as it's year-end, or to wait, given the material was never received and the credit note is dated later.

Gaurav Aggarwal

Gaurav Aggarwal (Querist)
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16 April 2023 I purchased a material and the seller raised an invoice on 6th March 2023. But the material was then scrapped at the seller end and did not reach me. The credit not is issued to me in April 23.

The 2B is showing me ITC of that invoice as claimable. What should I do? This is the year end. Please help.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 April 2023 No ITC can be claimed as material not reached. This is one of the condition for claiming ITC.

Gaurav Aggarwal

Gaurav Aggarwal (Querist)
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16 April 2023 Dear sir, thanks for the response.

My doubt is now that the invoice is showing in my 2B, the supplier will upload the credit note in April return. So should I reverse the ITC now itself in 'others' section of ITC Reversed?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 April 2023 Don't claim ITC on it. Reversal will not arise.

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