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GST ITC CREDIT

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Fahim Shaikh

141 Points Posted on 18 February 2021

DEAR SIR / MAA'M

MY NAME IS FAHIM SHAIKH I AM RUNNING A DYEING CLOTH BUSINESS

LITTLE BIT QUERY I HAVE THAT I HAVE TO CLEAR WITHIN A WEEK

ACTUALLY I HAVE A DEALER OF GAS CYLINDER WHICH WE ARE MAKING PURCHASE EVERY MONTH FOR DYEING A CLOTH

AT THE TIME OF LOCKDOWN THE GAS SUPPLIER HAD ISSUE 20 BILL TO ME OUT OF THAT 10 BILL IS CORRECT AND BALANCE BILL IS BOGUS BILL

AND I HAVE TAKEN ALL BILL CREDIT IN GST ITC BUT NOW I HAVE TO CLEAR ALL THE MISTAKE OF ITC I HAVE TAKEN OF BOGUS BILL

SO HOW SHOULD I CLEAR MY MISTAKE

KINDLY HELP ME OUT

Replies (4)

Quick Summary

This discussion addresses a query about correcting GST Input Tax Credit (ITC) claims made on bogus bills for a cloth dyeing business. The user mistakenly claimed ITC on 10 out of 20 gas cylinder bills, with the remaining 10 being bogus. The advice provided suggests reversing the incorrect ITC claims, potentially with interest. For current financial year claims, this can be done via GSTR-3B, while previous year claims would require using DRC-03. Interest calculation is suggested from the month of availing ITC until the reversal month.

matesurano

56 Points Posted on 18 February 2021

I think you need to reverse those 10 bills itc with interest.

Fahim Shaikh

141 Points Posted on 18 February 2021

So how to Reverse all entry with int kindly help

matesurano

56 Points Posted on 18 February 2021

Depends, first which year/month's itc and when did u avail it? Did u take them all together/are they same period's bills? Interest needs to be calculated from the month u availed till the month u reverse @ 18% or 24% m not sure along with the principal amount. I m not any expert, just sharing my knowledge. So please wait for expert advice. Thanks.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 18 February 2021

If it relates to current year reverse through GSTR-3B.
If it relates to previous year then reverse through drc-03
In case of further query you can mail me