Way to retain loss ITC
This query is : Resolved
04 June 2025
In January 2025 one of my dealer upload 8100 itc to my GST, that invoice was not belongs to me so I was rejected that itc, but in March 2025 he uploaded debit note to same invoice worth of rs 8100 itc, that time by mistake I was accepted that debit note. Here extra 8100 my itc was loss, so kindly suggest me any adjustment or any way to retain my loss itc.....
12 August 2025
Possible ways to fix or retain the lost ITC:
1. File a Refund / Rectification in next GST Return (if eligible)
Check if you can claim refund of excess tax paid or adjust in the upcoming GST returns by:
Filing GSTR-1 amendment by the dealer (if possible).
Correcting your GSTR-2A/2B reconciliation by rejecting the debit note (if window open).
However, since you accepted the debit note, reversal is difficult directly.
2. Reverse and Reclaim ITC via Debit Note / Credit Note
Ask your supplier to issue a credit note canceling the debit note (₹8,100).
Once credit note is issued, you can reclaim ITC in your GST return.
This is the best way to restore your ITC balance.
3. Use Form GST PMT-06 for Adjustment
If you have already paid tax on the debit note amount, you may be able to adjust it through Form GST PMT-06 (payment adjustment) depending on circumstances.
4. File a Written Application with GST Authorities
Explain the situation to your jurisdictional GST officer. Sometimes, relief can be sought if the mistake is genuine and documented.
5. Maintain Proper Documentation
Keep all correspondence, rejection notes, debit note, and acceptance proof handy.
This helps in case of audit or assessment.
Important Points:
Once debit note accepted, reversal is difficult without supplier cooperation.
Supplier’s cooperation in issuing credit note is crucial.
Timely communication with supplier and GST authorities can prevent permanent ITC loss.
Make sure to verify and reconcile ITC before accepting debit/credit notes in future to avoid such issues.
1. File a Refund / Rectification in next GST Return (if eligible)
Check if you can claim refund of excess tax paid or adjust in the upcoming GST returns by:
Filing GSTR-1 amendment by the dealer (if possible).
Correcting your GSTR-2A/2B reconciliation by rejecting the debit note (if window open).
However, since you accepted the debit note, reversal is difficult directly.
2. Reverse and Reclaim ITC via Debit Note / Credit Note
Ask your supplier to issue a credit note canceling the debit note (₹8,100).
Once credit note is issued, you can reclaim ITC in your GST return.
This is the best way to restore your ITC balance.
3. Use Form GST PMT-06 for Adjustment
If you have already paid tax on the debit note amount, you may be able to adjust it through Form GST PMT-06 (payment adjustment) depending on circumstances.
4. File a Written Application with GST Authorities
Explain the situation to your jurisdictional GST officer. Sometimes, relief can be sought if the mistake is genuine and documented.
5. Maintain Proper Documentation
Keep all correspondence, rejection notes, debit note, and acceptance proof handy.
This helps in case of audit or assessment.
Important Points:
Once debit note accepted, reversal is difficult without supplier cooperation.
Supplier’s cooperation in issuing credit note is crucial.
Timely communication with supplier and GST authorities can prevent permanent ITC loss.
Make sure to verify and reconcile ITC before accepting debit/credit notes in future to avoid such issues.
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