GST - Ineligible Input Tax Credit.

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fresher
194 Points Posted on 30 May 2023

Dear Sir / Ma'am,

I had reported the ineligible ITC (IGST) amount in GSTR9 of f.y. 2021-22.  But the same ineligible amount has not yet been adjusted in the Electronic Credit ledger. Hence when I am going to fill GSTR-3B, then the IGST ITC amount first gets adjusted.

Please guide me on this.

Thanks!

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On 30 May 2023 at 16:59 Report
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Quick Summary
A user is facing an issue where their reported ineligible IGST input tax credit (ITC) for FY 2021-22, declared in GSTR-9, is not reflecting as adjusted in their electronic credit ledger. This is causing the ineligible ITC to be incorrectly set off when filing GSTR-3B. Another user has suggested reversing the amount via DRC-03 to prevent this set-off and ensure the system uses the correct ledger balance. The original poster is now seeking detailed guidance on how to correctly file Form DRC-03, specifically regarding the 'Causes of payment' and the relevant 'Section number'.

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owner
65 Points Posted on 30 May 2023

Greetings

1. Reverse the IGST amount through DRC-3 and then proceed. It will not set-off with the IGST amount. System will automatically use balance of amount available in ledger.

For further query you can mail us at aakash.aca @ gmail.com

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On 30 May 2023 at 19:31
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fresher
194 Points Posted on 31 May 2023

Thank you Akash Sir!

Your Answer was : System will automatically use balance of amount available in ledger.

Ledger  ; Eelctronic Credit Ledger / Cash ledger.

Please confirm.

 

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On 31 May 2023 at 10:24
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GST Practitioner
55067 Points Posted on 03 June 2023
File DRC 03 & setoff the ITC from Electronic Credit Ledger.
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On 03 June 2023 at 23:06
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fresher
194 Points Posted on 06 June 2023

Please help me to file DRC-03.

Please suggest what to select in the below menu in DRC-03.

Causes of payment: Voluntary / Others. 

Section number: which section to choose from 73 to 127.

Please help.

 

 

 

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On 06 June 2023 at 17:48

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