A unit excess claimed itc in October 18 and subsequently reversed in may 19 finding errors. Now gst office issues notice for show cause together with excess itc and corresponding period intt and penalty, whether excess itc reversal by unit in may 19 of same amount justify the notice
If you are sure that excess reversal of itc has been reversed in May 2019, you can disclose the same to officer. however, since scn is issued, you will have to prepare reply to scn. Since, you have voluntary reversed such ITC, penalty should not be levied.
If any reversals of ITC made in subsequent months need to reversed along with Interest either at 18% or 24% of provision relavent to said section of ACT.
If reversal of same amount has been done in may 19, and the excess ITC wrongly considered in October 18, but from oct to may 19 the electronic credit ledger balance was constantly above the wrong inputs taken, so interest is still leviable, because the unit has not consumed the excess itc which was erroneously credited in Oct 19
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