Is ITC set off with Credit ledger

This discussion clarifies how to handle wrongly claimed Input Tax Credit (ITC) in GST returns. If you've claimed ITC incorrectly, you must reverse it via Form DRC-03 before filing GSTR-9 and pay 24% annual interest. While the wrongly claimed ITC amount can be offset using your credit ledger, the interest must be paid from your bank account via cash ledger. GSTR-1 is for outward supplies, and excess ITC claimed in GSTR-3B needs to be paid through the cash ledger and set off using DRC-03.