Un claimed itc and under declared liability

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This query is : Resolved

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A client failed to claim Input Tax Credit (ITC) and also under-declared their GST liability for FY 2020-21, keeping these entries separate for personal reasons. While the time limit to claim the ITC has passed, the GST liability must still be paid. The advice is to pay the outstanding GST via Form DRC-03 to avoid penalties, as adjustments for the missed ITC claim are no longer possible.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)

16 April 2022 Sir, can we adjust the un claimed ITC against the under declared liability, since the client fails to claim ITC of the year as well as not declared liability to the extent of said ITC i.e. the entries separately accounted due to some personal reasons and forgot disclose the same at the time of filing of GSTR3Bs

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 April 2022 Which period it related to. Such adjustment can be done in annual return.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)

17 April 2022 Good morning sir, this period is for FY 2020-21

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)

17 April 2022 Sir, kindly show me a solution

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 April 2022 Nothing can be done now. Time limit to claim ITC is over. But time limit is not over for payment of GST.
Pay GST through DRC 03 to avoid penalty.

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