ITC REVERSE AND RECLAIM
This query is : Resolved
15 October 2025
Dear sir,
in 2024-2025 1 party raised invoice on me and i not claim the input. i reverse that amount in gstr-3b in others coloum which go reverse and reclaim ledger.in 2025-2026 party done correction
but what to do of amount lying in ledger
please advice with legal view
with thanks
in 2024-2025 1 party raised invoice on me and i not claim the input. i reverse that amount in gstr-3b in others coloum which go reverse and reclaim ledger.in 2025-2026 party done correction
but what to do of amount lying in ledger
please advice with legal view
with thanks
15 October 2025
If ITC was reversed earlier due to a supplier’s error or missing details and now the supplier has corrected it, GST rules allow you to re-claim that ITC in the subsequent returns.
As per recent GST amendments, you should reclaim the eligible ITC in your GSTR-3B by appropriately disclosing it in the “ITC reclaimed” field/column as per the guidance mentioned in GST notifications and the portal.
The re-claimed ITC must correspond to the invoices rectified or corrected by the supplier in their returns (through amended GSTR-1 or by reporting correct details).
As per recent GST amendments, you should reclaim the eligible ITC in your GSTR-3B by appropriately disclosing it in the “ITC reclaimed” field/column as per the guidance mentioned in GST notifications and the portal.
The re-claimed ITC must correspond to the invoices rectified or corrected by the supplier in their returns (through amended GSTR-1 or by reporting correct details).
15 October 2025
Ensure that the supplier has uploaded/corrected the invoice data in GSTR-1 and paid the corresponding taxes in their GSTR-3B.
Once visible in your GSTR-2B as eligible, you can re-claim the amount directly in GSTR-3B in the table meant for reclaiming ITC previously reversed.
There is no need to keep the ITC as a liability or as a permanently reversed amount—duly re-claim it in your current return cycle as per matching principles.
No interest is required to be paid if re-claimed within the allowed period, provided all GST conditions are fulfilled by both parties.
Once visible in your GSTR-2B as eligible, you can re-claim the amount directly in GSTR-3B in the table meant for reclaiming ITC previously reversed.
There is no need to keep the ITC as a liability or as a permanently reversed amount—duly re-claim it in your current return cycle as per matching principles.
No interest is required to be paid if re-claimed within the allowed period, provided all GST conditions are fulfilled by both parties.
15 October 2025
Relevant Rules
Section 16(2)(c) of the CGST Act and Rule 37A provide for reclaim when the supplier later pays the tax and corrects the invoice details.
Such reclaim is permitted only if the earlier reversal was due to supplier reporting failures and has since been resolved.
Section 16(2)(c) of the CGST Act and Rule 37A provide for reclaim when the supplier later pays the tax and corrects the invoice details.
Such reclaim is permitted only if the earlier reversal was due to supplier reporting failures and has since been resolved.
15 October 2025
As soon as the condition for reclaim is met (supplier’s correction), you should move the amount from “reversal” back to “re-claim” in your GSTR-3B.
Keep documentation and supplier communication as evidence for future GST audits.
If the period for reclaim (usually up to the 30th November of the next financial year) is not over, you are legally entitled to re-claim the previously reversed ITC as soon as the mistake is rectified. No special treatment is needed for the amount in your ledger beyond this process.
If you have further specifics on the nature of the correction, the process may vary, but the above steps and legal view cover the standard scenario under the GST law as of FY 2025-26.
Keep documentation and supplier communication as evidence for future GST audits.
If the period for reclaim (usually up to the 30th November of the next financial year) is not over, you are legally entitled to re-claim the previously reversed ITC as soon as the mistake is rectified. No special treatment is needed for the amount in your ledger beyond this process.
If you have further specifics on the nature of the correction, the process may vary, but the above steps and legal view cover the standard scenario under the GST law as of FY 2025-26.
15 October 2025
SIR, my question is that 1 party raised wrong invoice to me in2024-2025 and i reverse of that invoice input in others so it is reflecting in reverse and reclaim ledger.later party amended as remove my gst no and put correct gst no. i want to now what i have to do for amount which is showing in reverse and reclaim ledger
with thanks
with thanks
15 October 2025
If you have already reversed the ITC claimed against the wrong invoice, you do not need to take any further action for that specific entry.
You should not reclaim this reversed ITC in future returns, since your GSTIN is no longer mentioned in the supplier’s revised invoice—reclaim is allowed only if you were previously eligible and the reversal was on technical or payment-related grounds that are later corrected.
Make sure your GSTR-3B and GSTR-2B have been matched and reconciled, and that your books reflect the reversal.
You should not reclaim this reversed ITC in future returns, since your GSTIN is no longer mentioned in the supplier’s revised invoice—reclaim is allowed only if you were previously eligible and the reversal was on technical or payment-related grounds that are later corrected.
Make sure your GSTR-3B and GSTR-2B have been matched and reconciled, and that your books reflect the reversal.
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