ITC Reversal & re-claim statement [FY 2023-24]

This query is : Resolved

yogesh waghchaure (Querist)
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22 April 2025 One of our client received an intimation from the department for the reversal & reclaim statement for the IGST balance reflecting in GSTR 2B for FY 2023-24. Client after discussion with the GST officer reversed the ITC as per intimation received from the department but while re-claiming the same in table 4D(1) added this ITC in Table No: 4A(5) - All other ITC. Now the same amount is reflecting in ITC Reversal & re-claim statement as a balance. Also what to do with the excess ITC which was claimed in Table 4A(5) ???

So what can we do in this scenario. Please guide.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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12 August 2025 Background:
Client reversed ITC as per department intimation (correct step).

While re-claiming, ITC was added in Table 4A(5) – All Other ITC instead of the appropriate table (Table 4D(1) - Reversal & Reclaim).

Result: ITC Reversal & Re-claim statement ledger shows a balance (unreconciled amount).

Excess ITC claimed in 4A(5) is causing mismatch.

What can be done:
1. Correct the Re-claimed ITC entries in the next GSTR-3B:
ITC which was re-claimed incorrectly in 4A(5) should be reversed out in the next GSTR-3B filing.

This means, reduce ITC claimed in 4A(5) by the excess amount wrongly claimed.

Then, claim the ITC correctly in Table 4D(1) in the next period as per department’s instructions.

2. Adjust through Debit/Credit Note if applicable:
If the ITC was claimed on invoices, consider issuing a credit note or adjustment in books to align with correct ITC figures.

3. Maintain clear reconciliation:
Maintain proper reconciliation between the Electronic Credit Ledger and the ITC claimed in GSTR-3B and GSTR-2B.

Monitor the Reversal & Re-claim statement ledger to ensure no balance remains unaddressed.

4. Filing of amended GSTR-1 (if required):
If invoices or credit notes were reported wrongly, consider amending GSTR-1 for the relevant period to align with the correct ITC treatment.

5. Communication with GST Officer:
Keep communication records with GST Officer and take written confirmation for the correct treatment.

If required, submit clarifications or rectifications online on the GST portal.

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