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ITC Reversal

Rishab Jain (138 Points)

07 May 2018

I have taken double entry for purchase in GSTR3B for March. how did I reverse the ITC ?

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4 Replies

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 07 May 2018

In your next GSTR-3B just deduct that amount from ITC and prepare a reconciliation statement for your reference and also for GST Audit purpose.

Rishab Jain (138 Points)
Replied 07 May 2018

What about Financial Year, as it's jumping.

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 07 May 2018

You cannot help it as there is no revision option.

Pralay Chakraborty (Service) (440 Points)
Replied 07 May 2018

It would be better to reverse the excess credit taken rather to reduce it from ITC. It may be bona-fide for you i future, as you yourself declared the reversal & did not want to hide by adjusting ITC. Reducing ITC may not be helpful to proof bona-fide and to avoid penalty.

This is my personal opinion in order to comply with law. For other solution the case to be examined by facts.