Regarding ITC in GSTR-9
This query is : Resolved
14 April 2023
Client engaged in Petrol business purchased a Tanker and we reversed the ITC on such Purchase later on the Vehicle company issued an Credit Note. Now in GSTR-9 Its showing as excess ITC claimed as it shows Net ITC after the deduction of such Credit Note ,what is the solution while filing GSTR-9???
24 April 2023
There is no GST on Motor Spirit or petrol.
20 July 2025
Got it! Here’s how you can handle this situation in GSTR-9:
Scenario Recap:
Client bought a tanker (used in petrol business) and reversed ITC on the purchase (since vehicles are generally blocked for ITC except for certain vehicles like trucks, tanker, etc.).
Later, the vehicle company issued a credit note (price reduction).
Now, in GSTR-9, it’s showing as excess ITC claimed because the net ITC (after credit note adjustment) appears higher than what was actually eligible.
How to handle it in GSTR-9:
Review the reversal and credit note adjustment:
Since the credit note reduces the value of the tanker purchase, your ITC reversal should also reduce proportionately.
Effectively, the ITC reversed should be reduced by the amount of credit note.
Adjust the excess ITC in GSTR-9:
Under Table 8 (Details of ITC) in GSTR-9, you can provide a reconciliation of ITC.
Show the original reversal of ITC under 8(1)(a) - ITC availed.
Reflect the credit note adjustment under 8(1)(b) - ITC reversed or any adjustments.
If excess ITC is still showing:
You should pay the excess ITC along with interest while filing the GSTR-9 or through a suitable challan.
Disclose the credit note in the details and explain in the reconciliation notes (if applicable).
Maintain proper documentation:
Keep all credit notes and reversal calculations documented to support your figures during any audit.
Summary:
The credit note reduces the purchase value and therefore reduces ITC reversal.
Adjust the reversal in GSTR-9 accordingly.
Pay any excess ITC shown if not adjusted correctly.
Scenario Recap:
Client bought a tanker (used in petrol business) and reversed ITC on the purchase (since vehicles are generally blocked for ITC except for certain vehicles like trucks, tanker, etc.).
Later, the vehicle company issued a credit note (price reduction).
Now, in GSTR-9, it’s showing as excess ITC claimed because the net ITC (after credit note adjustment) appears higher than what was actually eligible.
How to handle it in GSTR-9:
Review the reversal and credit note adjustment:
Since the credit note reduces the value of the tanker purchase, your ITC reversal should also reduce proportionately.
Effectively, the ITC reversed should be reduced by the amount of credit note.
Adjust the excess ITC in GSTR-9:
Under Table 8 (Details of ITC) in GSTR-9, you can provide a reconciliation of ITC.
Show the original reversal of ITC under 8(1)(a) - ITC availed.
Reflect the credit note adjustment under 8(1)(b) - ITC reversed or any adjustments.
If excess ITC is still showing:
You should pay the excess ITC along with interest while filing the GSTR-9 or through a suitable challan.
Disclose the credit note in the details and explain in the reconciliation notes (if applicable).
Maintain proper documentation:
Keep all credit notes and reversal calculations documented to support your figures during any audit.
Summary:
The credit note reduces the purchase value and therefore reduces ITC reversal.
Adjust the reversal in GSTR-9 accordingly.
Pay any excess ITC shown if not adjusted correctly.
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