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Blocked credit in Gstr 2B

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Shiva Durg

52 Points Posted on 07 December 2022

Suppose I have a credit reflecting in my GSTR 2b.( eg. input of works contract service relating to construction of immovable property) what action should be done relating to the same?

since it's a blocked credit, the same should not be claimed. Is there any other procedure to be done? like reversing?

Replies (2)

Quick Summary

If you have input tax credit (ITC) reflecting in your GSTR 2B that is considered blocked, such as for works contract services related to immovable property, it cannot be claimed. You must declare this credit under 'All other ITC' in your GSTR 3B and then reverse it. This reversal should be done in the specific columns designated for reversals as per CGST Rules 38, 42, and 43, and Section 17(5).

Rajendra Prasad

Employee Private

1913 Points Posted on 07 December 2022

It has to be included in "4(A)(5) All other ITC" and has to be reversed in "4(B)(1) As per rules 38, 42 and 43 of CGST Rules and sub-section (5) of Section 17" of Form GSTR 3B.