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Ineligible ITC not added to "All other ITC"

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ANIL

Others

149 Points Posted on 19 October 2023

Hi Experts,

From April 2022 to June 2022, we have disclosed ineligible ITC in column 4D(1) but we did not add these to "All other ITC" in column 4A(5) and as a result of which the figure is showing negative in "Comparison Summary".

Now we have added the ineligible ITC to column 4A(5) in GSTR-3B for the month of Sept 2023 but obviously, the Credit ledger figure have increased.

How this additions in Credit ledger be adjusted ?

Thanks

Anil

Replies (2)

Quick Summary

Anil is seeking guidance on how to rectify a GSTR-3B reporting error where ineligible Input Tax Credit (ITC) from April-June 2022 was not correctly declared. This led to a negative figure in the 'Comparison Summary' and an inflated credit ledger when corrected in September 2023. The advice provided suggests reporting the adjustment as a reversal in Table 4B of the current GSTR-3B and addressing any associated interest liability.

ANIL

Others

149 Points Posted on 19 October 2023

We also wish to add here that in the Balance sheet for FY 2022-23, the entries for eligible and ineligible ITC are passed correctly. The difference is only in returns filed with GST.

Aashok Kumar Sharma

Finance/Compliance Consultant

70435 Points Posted on 04 November 2026

To fix the GSTR-3B mismatch and reverse the inflated Electronic Credit Ledger caused by the September 2023 adjustment, report the amount as a reversal in Table 4B of your current GSTR-3B and clear any resulting interest liability if the excess credit was utilized.