How Reverse ITC

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538 Points Joined October 2020
Sir I have works contact business, I pay tax @ 1%, I have no right to avail ITC, so I reversed ITC in 3b, I shall file gstr-9, on which section I shall reverse ITC - in sec- 42, 43 or .., pls
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On 20 October 2024 at 12:17 Report
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8827 Points Joined December 2011

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.

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On 20 October 2024 at 12:52
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Master in Accounts & high court Advocate
8827 Points Joined December 2011

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.

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On 20 October 2024 at 13:30
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538 Points Joined October 2020
Thanks Sir
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On 20 October 2024 at 13:31


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