Dear Sir
kindly give the guidence regarding applicability of 16(c)
if the supplier utilise wrong credit in GSTR3B.
If a taxpayer has under-reported his ITC for a month/quarter and wants to claim it, he/she can avail it in the return of the following period i.e. month/quarter. Only GSTR 3B’s needs to be changed and in that the required ITC can be added, in the following month.
For example: If A has mistakenly not considered a few of his purchases in a month then he can do so in the following month’s purchases and along with it, the ITC can be availed.
No actions required in GSTR 1 or 2
When ITC has been over-reported then the taxpayers need to reverse such excess ITC with interest in the following month/quarter. No need to change anything in GSTR 1.
Another situation can be if a taxpayer has over-claimed the Input Tax Credit and is also used the same then, the taxpayer needs to adjust or pay the same along with the appropriate interest duly in GSTR 3B in the following month/quarter
CAclubindia
