Reversal of unutilized ITC can be paid through ITC

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This query is : Resolved

Quick Summary

If you've reversed unutilised Input Tax Credit (ITC) for a previous period, you can typically pay this reversal amount using your available ITC balance in the credit ledger. Interest will only be charged if your e-credit ledger balance falls below the reversal amount at any point, which would be considered as utilising the credit.

Srimannarayana

Srimannarayana (Querist)

15 January 2025 Sir I have reversed unutilized ITC in ITC tail 4(B)(1) for previous period, can I pay the reversal amount through credit ledger and is there need to pay any interest sir

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

16 January 2025 If you have already declared reversal through 3B, it can be paid through credit ledger through 3B itself if there is sufficient balance and interest will come only if that much balance is not maintained in e credit ledger. that is if balance in e credit ledger falls below the amount to be reversed at any time it wll be taken as utilized.

Srimannarayana

Srimannarayana (Querist)

16 January 2025 Thanking you very much sir

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