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Gst itc reversal sec 37(3)

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Shweta Gusain

Student

21 Points Posted on 17 April 2019

I have already filed GSTR 3B for the month, March 2019. Giving reference to Central Goods and Services Tax (Second Removal of Difficulties) Order, 2018 dated 31-12-2018 which stated that ITC relating to FY 2017-18 can be reversed till return of March 2019. I have not mentioned the details of reversal of ITC relating to FY 2017-18 of ₹200 (relating to calculation error on rate of GST) was supposed to be reversed but was not entered in the GSTR 3B return although Interest for the above mentioned ITC was paid in this return of March2019.

My questions now is-

(1) Can I reverse the ITC in the April 2019 GSTR 3B return and reflect the same in the Annual Return in ITC Reversal table as other and mention the error ?

(2) What will be the rate of interest in such an event ?

18% or such error be considered malafide intention and 24% will be applicable ?

(3) I have been a diligent Taxpayer since the advent of GST and have paid my taxes timely. Will this error cause trouble for me ?

Replies (1)

CA Ankit Garg

MD | Genuine Filings

492 Points Posted on 18 April 2019

1) See you need to reverse the ITC wrongly taken that is for sure but you won't be able to reflect it in Annual Return as it won't allow rectification made after Mar-19 return.

2 & 3) Since you're reversing ITC wrongly taken on suo-moto basis & considering that, this is a calculation error & the amount involved, it can't be treated as malafide intention, hence 18% interest will be applicable.

Now, the situation is how to rectify this mistake as GSTR-3B for Mar-19 has already been filed, in my opinion what you can do is reverse such ITC in April-2019 return and show that you have adjusted such wrongly taken ITC in Mar-19 return.