ITC on Credit notes are accounted in General ledger (Books of Accounts). But the credit notes are not appearing in ITC Report. While doing reconcilation between ECL and GL found that Credit notes are not updated in GSTR3B.
In FY 2021-22, We have reversed ITC on credit note in GSTR3B. This FY ITC Reversal is more than the Previous Financial year and not matching ITC proporationate Ratio. Hence ASMT-10 notice received.
In FY 2021-22 the Following year credit notes are reversed. FY 2018-19, FY 2019-20 and 2020-21. FY 2020-21 is reversed within the time limit. FY 2018-19 and 2019-20 are late reversed by us. We have good ECL Balance.
Questions :
01. Will be there any interest and penalty on late reversal of Credit notes?
02. The proper officer can disallow the Credit notes for the late reversal?
Thank you
CAclubindia
