UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
This query is : Resolved
TARIQUE RIZVI
(Querist)
09 September 2026
GOOD AFTERNOON SIR
As per the books Credit balance of GST is Rs 50 lacs but the ITC credit on GST portal is 20 lacs. It means an excess Credit as of Rs 30 lacs has been taken inadvertently which can be reversed in computation of income by deducting back to total income.
AM I RIGHT SIR
As per the books Credit balance of GST is Rs 50 lacs but the ITC credit on GST portal is 20 lacs. It means an excess Credit as of Rs 30 lacs has been taken inadvertently which can be reversed in computation of income by deducting back to total income.
AM I RIGHT SIR
09 September 2026
The assumption that excess GST credit of ₹30 lakhs can be deducted from total income to reduce income tax liability is incorrect. GST ITC adjustments must be handled by rectifying the accounting entries or reversing ITC under GST laws via GSTR-3B/DRC-03, rather than treating it as a tax deduction.
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