ITC taken wrongly

Hi

In June 2019 ITC to the extent of Rs.3,42,299 was taken wrongly and future GST payments were adjusted against this ITC. How to reverse it? Can i reverse while filing March GSTR 3B. Do i have to pay interest or penalty? Also ITC relating to last year to the extent of Rs.2280 wrongly taken is not reversed. Can i reverse previous financial year ITC? How to reverse it?

 

Thanks

Indira K  V

 

Replies (5)
Quick Summary
This discussion addresses how to reverse Input Tax Credit (ITC) that was wrongly claimed and adjusted against future GST payments. It clarifies that reversals can be made in the March GSTR 3B filing, with interest payable under Section 50 of the CGST Act. The possibility of reversing previous financial year's ITC and the relevant time limits for such corrections are also explored.

Yes you cam reverse in March 3B Return. You need to pay Interest under section 50.

Last year ItC need to paid through DRC 03/ now as reversing in returns is time barred now...
First you have to correct with march return
Partially Agree with Mr Sunil Arora.
can Reverse in GSTR 3B of march with payment of interest @ 24% as per Section 50 of CGST Act .

As per the last proviso under Section 39 of CGST Act , that any such rectification can be done by September month return following the end of Fy .

So the time barred will be effective only after September 2020 for Fy 2019-20 .
Hence not required to file DRC 03.
Correction of pervasive assessment year is not possible now it self.

Hi 

 

Thanks for the inputs. Do we have to pay interest if we have not utilized the Input tax credit?

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