ITC not to be taken in accounts & GSTR-3B

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This query is : Open

Quick Summary

This discussion addresses how a GST-registered business should handle Input Tax Credit (ITC) that appears in GSTR-2B and auto-populates in GSTR-3B, but is not eligible or applicable to the business. The core issue is how to accurately reflect this amount in GSTR-3B when it shouldn't be claimed or taken into accounts. Guidance suggests either showing it in the reversal column or availing the net amount after adjustments, advising to verify business alignment and invoice validity.

Neha

Neha (Querist)
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13 January 2024 Sir/Madam

If a GST registered person has ITC showing in his GSTR 2B and this figure is getting auto populated in GSTR 3B Part 4 (Eligible ITC) .
But this ITC is not to be taken in accounts neither claimed in GSTR-3B as it does not pertain to the business of Taxpayer.
How to depict this amount in 3B.
Should ITC available (whether in full or part) figure in Part 4. Eligible ITC be reduced by the amount not to be claimed or do we show it in some other part of Return 3B

Please Guide
Thanks in Advance

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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13 January 2024 you can show it in reversal column or can avail net off only.

RAJA P M

RAJA P M (Expert)
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14 January 2024 Yes I agreed with Expert opinion. Before that contact and discuss the particular person who is filed with Your GSTIN. After that decide what you do (reversal or take or leave)