Excess ITC claimed FY 2019-20

This discussion addresses how to reverse excess Input Tax Credit (ITC) claimed during FY 2019-20, especially when the annual return hasn't been filed yet. The recommended method is to reverse the excess ITC through Form DRC-03, selecting the 'voluntary' option. While it's possible to set off this excess ITC against a credit balance in your ledger, you must pay the applicable interest (24% p.a.) in cash.