Regarding ITC in GSTR-9

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Quick Summary

When a credit note is issued for a tanker purchase, it reduces the original purchase value. Consequently, the ITC reversal should also be reduced proportionally. In your GSTR-9, you can adjust this by reflecting the credit note's impact in Table 8, reconciling the ITC availed and reversed. If excess ITC is still claimed, you'll need to pay it along with interest, ensuring all documentation is in order.

Akhil Amara

Akhil Amara (Querist)
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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???

CA SANDESH MAHIPAL

CA SANDESH MAHIPAL (Expert)
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24 April 2023 There is no GST on Motor Spirit or petrol.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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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.

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