Good Morning,
One dealer was having purchase bill of IGST of Rs.500000 (Basic Value) plus IGST of Rs.90000 in FY 19-20. While filing GSTR-3B, dealer wrongly claimed ITC of this bill in CGST of Rs.45000 and SGST of Rs.45000 instead of claiming IGST ITC of Rs.90000. GST Department has issued notice to dealer saying that dealer has wrongly claimed ITC in CGST of Rs.45000 and SGST of Rs.45000. There was no other purchase during the FY 19-20 since dealer started business in March 2020.
There was one service bill raised in March 2020 in which there was tax liability of IGST of Rs.36000 which was paid from CGST ITC.
There was no other transactions in FY 2019-20 apart from this one purchase and one sale transaction.
What could be the solution to this situation.
Kindly give your valuable suggestion.
Thank You
CAclubindia
