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Reverse Wrong ITC claim on Vehicle purchase

20 March 2022

Our Company purchase one vehicle for managment use on October,2021 and we claim ITC on November,2021 at the time of filling return. Now we reverse that ITC so how to reverse this ITC and how to show it.

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8 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 20 March 2022

Why you want to reverse ITC ?.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 20 March 2022

Since we claim ITC through GSTR-3B , there is an option to reverse ITC through GSTR-3B only..

Check latest month GSTR-3B and you will get the column to reverse it

1 Like

Abhijit Khan (39 Points)
Replied 21 March 2022

Is there any interest come on ITC reversal ?

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 21 March 2022

Yes..It is applicable but if it is not by demand then it may be skipped

sabyasachi mukherjee (26235 Points)
Replied 21 March 2022

There is no demand raised by the department.

1 Like

Abhijit Khan (39 Points)
Replied 21 March 2022

Are you sure there is no demand raise by department...?

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13542 Points)
Replied 21 March 2022

ITC reversal with interest is required if wrong ITC has been availed and utilized.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 21 March 2022

When it is correct ITC but default was on the part of supplier then they pay the interest ..

Else collect the interest from the supplier and pay with interest