Advisory Against Excess ITC

This discussion addresses a client who received an excess Input Tax Credit (ITC) notice despite having a significant balance in their electronic credit ledger. The notice demands payment for an amount exceeding the actual ITC balance, potentially due to late GSTR 3B filing. Participants are seeking advice on how to handle this, including the implications of ITC reversal and 18% interest, and whether the discrepancy will be resolved once supplier GSTR1 filings are reflected in GSTR2A.