Claim of ITC more than 2B

ITC / Input 413 views 1 replies
User Avatar

1 Points Joined September 2021

If I claim ITC as per books which is not reflected in GSTR-2B,  in such case GST officer will ask me to pay interest only from the period of claim to period of reflection or he will ask to reverse the ITC with interest?

0 Reply Share Follow
On 22 June 2025 at 17:42 Report
Replies (1)
User Avatar

Master in Accounts & high court Advocate
9434 Points Joined December 2011

Claiming Deduction for Write-Off of Unsecured Advance As you've lent an unsecured advance to a partnership firm that's now in insolvency proceedings and likely won't repay the loan, you can claim a deduction for the write-off. Conditions for Claiming Deduction - *Income from Other Sources*: Since you've declared interest income from the loan under "Income from Other Sources" in earlier years, you can claim a deduction for the write-off. - *Loan Becoming Irrecoverable*: You'll need to demonstrate that the loan has become irrecoverable.

The firm's insolvency petition and lack of assets in the balance sheet can serve as evidence. Section 57 of the Income-tax Act You can claim the deduction under Section 57 of the Income-tax Act, which allows deductions for expenses incurred to earn income from other sources. Although the loan itself isn't an expense, the irrecoverable amount can be considered a loss incidental to the earning of interest income. 

Claim the Deduction You can claim the deduction in the year the loan becomes irrecoverable, which appears to be the current year given the insolvency proceedings. Ensure you maintain documentation, such as: -

 *Loan agreement*: Details of the loan provided to the partnership firm. - *Insolvency petition*: Copy of the insolvency petition filed by the firm. - *Balance sheet*: Copy of the firm's balance sheet showing no assets.

Reply
On 23 June 2025 at 10:34


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading