How Reverse ITC

To reverse ITC in GSTR-9, you should report it in Table 4(A) - "Reversal of ITC" under section 43.

 Here's why: -

Section 42 relates to the "ITC availed" section, which isn't applicable in your case since you're not availing ITC. -

 Section 43 pertains to the "Reversal of ITC" section, which is where you should report the ITC reversal since you've already reversed it in GSTR-3B.

In Table 4(A), you'll need to provide the details of the ITC reversed, including the amount and the reason for reversal (in your case, it's because you're not availing ITC as a works contractor paying tax at 1%).

Remember to carefully review the GSTR-9 instructions.

You shall reverse the ITC in Table 4(A) - "Reversal of ITC" under section 43 of the GSTR-9 form. Section 43 is the appropriate section for reversing ITC in GSTR-9, as it pertains to the "Reversal of ITC" section.

 Here's a brief overview of the relevant sections: -

 Section 42: "ITC availed" - This section is not applicable in your case since you're not availing ITC. -

Section 43: "Reversal of ITC" - This is the correct section for reversing ITC, which you've already done in GSTR-3B. -

Section 44: "ITC not availed" - This section is for declaring ITC that was not availed during the financial year. In Table 4(A), you'll need to provide the details of the ITC reversed, including the amount and the reason for reversal (in your case, it's because you're not availing ITC as a works contractor paying tax at 1%). Remember to carefully review the GSTR-9 instructions and consult a tax professional if you're unsure about any aspect of the filing process.

Under a no-ITC scheme, simply don't take it:

• If you pay 1% (affordable housing under the new real-estate scheme, without ITC), ITC on inputs for that project isn't available. Ideally, don't claim it in 3B at all.

• If claimed by mistake, reverse it in GSTR-3B Table 4(B)(2) (others) with interest if utilised. In GSTR-9, the reversal goes in Table 7H (other reversals).

• For mixed projects (some on 1%/5% without ITC, others with ITC), use the Annexure IV computation (Notf 11/2017 / Rule 42) for reversal, with the final determination at completion.

• Report ineligible ITC never claimed in 4(D)(2), if relevant.