Itc reversed or ineligible ITC

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This query is : Resolved

Quick Summary

This discussion addresses how to correctly reverse IGST credit claimed on car insurance payments. It explores the options within GST returns: 'ITC Reversed' versus 'Ineligible ITC', and the sub-options within each. The advice clarifies that 'Ineligible ITC' under Section 17(5) is for blocked credits, while 'ITC Reversed' under Rules 42 & 43 applies to reversals for mixed taxable and exempt supplies. The correct method for reversing IGST on car insurance and calculating associated interest is also discussed.

ARUN GUPTA

ARUN GUPTA (Querist)

23 October 2021 We have taken igst credit on insurance payment in June 2021 gstr return. We want to reverse this IGST CREDIT. THERE are two options in return. One is Itc reversed and other is ineligible Itc. Which option should I go for? Pl clarify?

ARUN GUPTA

ARUN GUPTA (Querist)

23 October 2021 When is ITC REVERSED OPTION IS USED? UNDER ITC REVERSED RULE THERE ARE 2 OPTIONS AGAIN ONE IS AS Per rule 42& 43 of cgst/sgst rules and 2 is others? Which option should be used?

ARUN GUPTA

ARUN GUPTA (Querist)

23 October 2021 Please reply which option to be used and why?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

24 October 2021 If such ITCs are blocked u/s 17(5) then reverse under ineligible itc field else others.
Rule 42 and 43 is about reversal of ITC when you have taxable as well as exempted supplies.

ARUN GUPTA

ARUN GUPTA (Querist)

24 October 2021 We had availed IGST ON CAR INSURANCE Premium. How and under which option we should reverse this ITC? HOW INTEREST AMOUNT WILL BE CALCULATED?

ARUN GUPTA

ARUN GUPTA (Querist)

24 October 2021 There are 2 options in ineligible ITC 1) as per section 17(5) and 2) others. Which option we have to show? And how will we make the payment? How will we calculate and pay the interest at which rate?

ARUN GUPTA

ARUN GUPTA (Querist)

24 October 2021 We had availed IGST ON CAR INSURANCE Premium. How and under which option we should reverse this ITC? HOW INTEREST AMOUNT WILL BE CALCULATED?

ARUN GUPTA

ARUN GUPTA (Querist)

24 October 2021 How to reverse the ITC.