GST ITC Reversal of FY 2021-22 in Sept22- Liability payable through DRC-03 or GSTR3B

Dear Experts,

Our client is Manufacturing both Taxable and Non-Taxable goods.

ITC Reversal on ineligible payable amount for the FY 2021-22 is going to be reversed in Sep22 (GSTR3B on 20th Oct'2022) .

Whether it is payable through GSTR3B or DRC-03 option to make payment.(ITC Reversal liability)

If we are paying through GSTR3B whether GSTR3B will allow to offset the cash ledger?. Since this liability has not shown in GSTR1.

If we are paying through DRC-03 . It can not be shown in GSTR9 of Annual Return on 31.12.2022(Table 12)

We are going to pay this amount in couple of days. Please treat this an urgent one and KINDLY SUGGEST

Replies (3)
Quick Summary
This discussion seeks urgent advice on how to reverse Input Tax Credit (ITC) for the financial year 2021-22, which is being accounted for in September 2022. The core question is whether this reversal liability should be paid via GSTR-3B or the DRC-03 form. The user is concerned about how the payment method will affect reporting in the GSTR-9 annual return, particularly Table 12.

I am requesting experts opinion in this regard

For reporting in GSTR-9 it is better to go for reversal in GSTR-3B for sept as in any case you are eligible to do so for the FY 21-22 and it can also be explained to the department. 

Thank you very much sir

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