What is diffrence between Reversal of ITC and Amount such itc add black to output liability.?
e.g, When ever we take ineligible ITC. there is two opinion raised as follow to compensate above ITC.
1) Add in output liability OR
2) Claim less ITC
Which option is correct and why??
There is an option for ITC reversal in Table 4.B of GSTR 3B for ITC reversal under head "Others".
Although, if the correction was made through addition to outward liability, it is only a disclosure error and has no revenue impact.
Note: GSTR 9 & 9C - disclosures and comments would be required for the same.
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