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ITC claim of credit note

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RAKESH KUMAR

86 Points Posted on 26 January 2020

R/Sir I have claimed ITC of credit note and no reverse in September 2018 and March 2019 can I reverse it. GST R 9 whether through credit ledger or cash ledger

Replies (2)

Quick Summary

If you've claimed ITC on a credit note and need to reverse it for GST R9, you must make a voluntary payment using form DRC-03. This payment should be made through the cash ledger, and interest at 24% per annum will apply. While you can use your credit ledger to offset this liability, the interest portion must be paid in cash. Notification 74/2018 CT confirms that liabilities in GSTR-9 can be settled via the Electronic Cash Ledger.

Anup Agarwal

529 Points Posted on 26 January 2020

Before filing GSTR-9, make voluntary payment of your ITC Reversal through form DRC-03, you can use your credit ledger for it.
but you will have to pay interest at the rate of 24% p.a. through cash ledger.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 26 January 2020

Yes you need to pay tax in cash ledger with interest @ 24% (as per section 50) & set-off the same by filing DRC-03.

Note : As per Notification 74/2018 CT , any liability arising in GSTR 9 can be paid off by Electronic Cash Ledger .
So you cannot set-off by Credit ledger