Reversal of Input tax credit in GST

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This query is : Resolved

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If you've wrongly availed Input Tax Credit (ITC) in a previous financial year, you can reverse it immediately. The discussion suggests reversing it via your current GSTR-3B filing. There isn't a strict time limit, but it's best to rectify the error as soon as it's noticed to prevent potential interest and penalty charges.

AviGan

AviGan (Querist)
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10 November 2020 Sir/Madam,
I have wrongly availed ITC blocked credit in month of Jan 2020 (FY 19-20). Can I reverse this ITC in GSTR 3 B of October 2020 or should it be done through DRC-03
What is the time period allowed within which wrongly availed ITC can be reversed via GSTR3B.
Thanks for the help in advance

Lekhraj sood

Lekhraj sood (Expert)
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10 November 2020 You can reverse now. There is no time period , it has to be immediately done.Wrong availment of ITC invites interest and penalty.

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AviGan

AviGan (Querist)
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11 November 2020 Sir, should I reverse it via GSTR 3B of October 2020. Or opt for DRC-03. Thank you very much for your guidance.

Lekhraj sood

Lekhraj sood (Expert)
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11 November 2020 You can reverse it in 3B.

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AviGan

AviGan (Querist)
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11 November 2020 Thank you for your guidance . Just one more clarification required .What is the time allowed or what is the last date within which wrongly availed ITC of a particular Financial Year can be reversed.

Lekhraj sood

Lekhraj sood (Expert)
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11 November 2020 immediately on noticing that the credit was wrongly taken.

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