Wrong ITC Car Tyre Claim in GSTR-3B

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This query is : Resolved

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If you've mistakenly claimed Input Tax Credit (ITC) on car tyres in your GSTR-3B return, you need to reverse it. The reversal amount should be entered in Table 4B of your GSTR-3B. Remember that ITC on car tyres is generally blocked under Section 17(5)(ab) unless the vehicle is used for specific business purposes like goods transport or resale. You will also need to pay interest on the incorrectly availed ITC.

santosh kr poddar

santosh kr poddar (Querist)
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16 February 2024 I mistakenly claimed ITC on the Car Tyre in GSTR 3B, and now I want to reverse it. In which column of GSTR 3B is it to appear?
Tyre cost is to be included in home delivery expenses and only ITC is to be reversed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 February 2024 Amount of the ITC reversal, enter it in Table 4B of GSTR-3B

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RAJA P M

RAJA P M (Expert)
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16 February 2024 Reverse the ITC as per Mr CA R Seetharaman Sir. Pay interest on ITC claimed.

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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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17 August 2025 Additional Points to Strengthen the Answer:
Under Section 17(5)(ab), ITC on car tyres is blocked if the vehicle is for personal or passenger conveyance (up to 13 seats). So, the ITC for such tyres cannot be claimed even if it was entered in GSTR-3B mistakenly.
ITC may be eligible if the vehicle is used for:
Goods transportation,
Resale business (e.g., dealer),
Passenger transport services,
Driving/training operations.
Upon reversal, the taxpayer must also pay applicable interest (up to 24% p.a.) under Section 50 for the incorrectly availed ITC.
Ensure the amount is reversed in Table 4B of GSTR-3B, and reconcile with GSTR-2B to maintain correct reporting.

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