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Is ITC set off with Credit ledger

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RAKESH KUMAR

86 Points Posted on 26 January 2020

R/ Sir can we setoff iTC with credit ledger while filling GST return 9 I claimed the ITC credit wrongly in GST return 1

Replies (3)

Quick Summary

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.

Anup Agarwal

529 Points Posted on 26 January 2020

What?
ITC can not be claimed in GSTR-1

if you have claimed ITC wrongly then reverse it through Form DRC-03 before filing of GSTR-9 with interest of 24% per annum.
For the amount of wrong ITC, you can use your credit ledger, but for 24% interest you must have to pay through your bank account.

Mondira Saha

GST

2402 Points Posted on 26 January 2020

1 hope is here you can try many more try including me ..

if you pay excess laibility in 17-18 (not claiming ITC) I m taking about output laibily shown excess then you file your gstr 9 in correct value . after it fiLE RFD-01 (EXCESS PAYMENT OF TAX ) and attach your relevant doc

Pankaj Rawat

GST Practitioner

29904 Points Posted on 27 January 2020

Gstr 1 form is for to report Outward Supply .

So if you have claimed the excess ITC in GSTr 3B , then need to PAY IN CASH LEDGER & set off by filing DRC -03

Note : Cannot set-off from credit ledger (Refer Notification 74/2018 CT)