GST Sec 18(4)

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does the amount availed as Input tax credit will be actually paid to government or just reversed in ECL u/s 18(4).
Replies (5)
No need to deposit any tax you have to reverse your ITC as your ITC will be lapse
thanks for reply sir. but words of law says "HE SHALL PAY an amount by way of debit in Ecr ledger or ECL"
Sorry Anupama
I actually misread your query , yes You have to fill ITC 03
GST ITC-03 is a Form to file to pay an amount through the common portal, by way of debit in the electronic credit ledger or electronic cash ledger equivalent to credit availed in respect of of input held in stock .

So if there is not enough balance in ECL but the input on stock shown in ITC 03 is Higher then have to pay by Electronic cash Ledger.

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rawat sir then won't it result in double payment of tax for same amount ie first by way of tax already paid to supplier and then again payment equal to value of itc taken ?
You are correct ,... But law reads like that only , Technically if your outward supply is exempted then you cant claim ITC on its inward supplies


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