Itc claimed on repairs on car

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This query is : Resolved

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This discussion addresses how to reverse Goods and Services Tax (GST) Input Tax Credit (ITC) claimed on car repairs in the June 2021 GSTR 3B return for the 2020-2021 period. The advice suggests reducing the existing ITC in the August 2021 GSTR 3B return. If the ITC was utilised, interest at 18% or 24% (depending on interpretation) is payable, calculated from the date of availment to the date of reversal.

ARUN GUPTA

ARUN GUPTA (Querist)

19 September 2021 We have claimed GST on repairs on car in our june 2021 gstr3b returns for the period 2020-2021.how and where We have to reverse the claimed ITC? WHAT IS THE PROCESS OF REVRSE? DO WE HAVE TO PAY INTEREST ON REVRSED ITC? For what period interest will be calculated? Please advise?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 September 2021 Reverse it in August 2021 return. Reduce the respective ITC in GSTR 3b.
Yes, 24% interest payable if ITC utilised.
Calculate interest from availment to reversal.

ARUN GUPTA

ARUN GUPTA (Querist)

19 September 2021 Will We have to reverse ITC or reduce the existing ITC?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 September 2021 Reduce existing ITC.