A business claimed Input Tax Credit (ITC) on a car in their GSTR3B return in May 2021. The GST office has now contacted them, stating the ITC is ineligible and must be reversed. The ITC has not yet been utilised and remains in the credit ledger. The business is seeking advice on whether to reverse it via DRC-03 or through the current month's GSTR3B return, as the ITC has not been used.
in May 2021 we claimed ITC on Car in GSTR3B Return, now we received call from GST office it is ineligible reverse it.we have ITC Credit in Credit ledger till now we have not used this ITC
They informed reverse it through DRC03 , GSTR3B this month return we can reverse this CAR ITC