ITC reclaimed which was reversed under Table 4(B)(1) in earlier tax period

This query is : Resolved

PARDEEP KAPIL (Querist)
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21 May 2025 Dear Sirs : During Februray 2025 GST say Rs.5,000 on purchase of plant and machinery was clubbed with cost and accounted in books of accounts. The ITC - GST Rs.5,000 was mentioned in Table 4(B) 1 and GSTR3B filed.... Now the dealer wants to reverse and claim ITC Rs.5,000 ITC in GSTR3B of April 2025. Kindly suggest.... Can reduce Rs.5,000 from coloumn 49(A) (5) manually.... Please advise... Kind Regards

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 May 2025 Issue Summary
In Feb 2025, GST of ₹5,000 paid on purchase of plant and machinery was capitalised (clubbed with cost), and the ITC was not availed.

It was disclosed in GSTR-3B, Table 4(B)(1) as "ITC available but not availed".

Now, the taxpayer wishes to reverse the capitalisation and claim the ITC of ₹5,000 in April 2025.

Key Compliance Points
Eligibility Period:

As per Section 16(4) of the CGST Act, ITC can be claimed on or before 30th Nov of the following financial year, or before filing the annual return (whichever is earlier).

Since the invoice pertains to Feb 2025, claiming ITC in April 2025 is within the eligible time frame.

Reversal of Capitalisation:

You must rectify the accounting treatment in your books:

Debit Input GST Account with ₹5,000.

Reduce the cost of plant and machinery by ₹5,000.

This ensures that the asset value is adjusted, and GST is shown as ITC in books.

GSTR-3B Reporting for April 2025
Report the ITC of ₹5,000 in:

Table 4(A)(5) – "All other ITC".

There is no need to adjust or reduce any amount manually in Table 4(B) or Table 4(C).

Do not try to adjust Column 49(A)(5) manually in the return – that field reflects system-calculated figures based on your 4A/4B inputs.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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23 May 2025 Dear Sir : Thank you very much for adetailed reply... Kind Regards

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