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How to rectify excess ITC claimed in GSTR 3B?

Veenu Kumawat (30 Points)

04 April 2019

ITC claimed in GSTR 3B is 10,000 and as per GSTR 2A 8000. What should I do in annual return?

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10 Replies

RUPINI KOTHAMASU (CA-JOB) (502 Points)
Replied 04 April 2019

why should we reverse that ITC when it is actually paid by us? It is the fault of opposite party for not uploading the same in their GSTR1....

RUPINI KOTHAMASU (CA-JOB) (502 Points)
Replied 04 April 2019

But how can we deny our right to claim the genuine ITC and pay more tax without claiming ITC?

RUPINI KOTHAMASU (CA-JOB) (502 Points)
Replied 04 April 2019

sir I am convinced with your answer,
Also suggest me a suitable action in case of large amounts

pritesh (CA Final student) (7101 Points)
Replied 04 April 2019

Don't reverse it... prepare a reconciliation statement of gstr 2a and 3b itc...the difference please note down...if tomorrow dept issue notice try to explain IT

1 Like

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 04 April 2019

Hi Rupini, the answer to your 1st question in the thread is Sec. 16 of CGST Act, 2017, which clearly specifies that recipient can take ITC only when such Tax has actually been paid to the Govt in cash or by adjustment of ITC and Return is furnished by the seller. However, Sec. 41 allows you to take provisional ITC of the same on self assessment basis but it's your liability to keep check on seller that he filed his return and you got your credit or not on time to time basis.

Further, you are right that it's seller duty to show your sales & pay tax on it and if he don't then assessment can be done against him but as per GST provisions if GST department is unable to recover amount from such seller then they have right to recover it from you, so, here Govt. is securing their interest only.

Hence, I suggest you to regularly match your ITC with GSTR-2A data and if there is any discrepancies then remove it hand to hand by coordinating with seller.

I also suggest you, if possible in your line of business, to pay GST portion of Purchase after getting credit of it or when there is absolute surety that you'll get the credit.

Thanks!!

4 Like

Asha Kanta Sharma (Manager - Finance & Accounts) (10519 Points)
Replied 04 April 2019

Why we should forego any amount of taxes paid by us for not the fault of us. If there is any loophole or someone is at fault we must brought is into account and fix it. Why we should ignore even a RUPEE of taxes paid by us.

Ignoring should not helps in the long run nor it will fix the system.

Please guide us all the options as per law that can be taken to fix this for one and all.

RUPINI KOTHAMASU (CA-JOB) (502 Points)
Replied 04 April 2019

Sir , is there still a chance to add such missing invoices pertaining to fy 2017-18 by the supplier now and where can they add. Because GSTR 9 does not have a facility to add these type of missing invoices but the most suitable disclosure may be in Part V, Point 10 of Form GSTR 9.