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GST - Ineligible Input Tax Credit.

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Soumyaranjan Samal

fresher

168 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!

Replies (4)

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'.

Akash

owner

50 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