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November ITC Claimed in October, what shall i do now?

Jeet (student) (27 Points)

24 December 2020

I claimed the ITC of November invoice in October in GSTR-3B, and now i am filing the GSTR-3B for November, and system has auto-calculated and populated the invoice amounts in itc, If I enter the amount in reversal column in itc, I am seeing contravention to rule 36(4) error message. What shall i do now? Please help

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6 Replies

RAJSHREE MUNDRA (CA) (56 Points)
Replied 24 December 2020

No need to worry you can reverse itc claimed in advance

Jeet (student) (27 Points)
Replied 24 December 2020

But, when i enter the amount in reversal section under itc table, i see the below message and itc column is turned red.

For table 3.1 (a, b, c, e) & 3.2 - The information entered by you is in variance with the auto-populated data. The liability has been computed on the basis of the information declared by you in your FORM GSTR-1. Kindly recheck and proceed.

For table 3.1 (d) and 4 - The information entered by you is in variance (>10%) with the auto-populated data. The input tax credit/reverse charge liability has been auto-populated on the basis of the GSTR-2B generated for you. Also, please note that any variance above 10% of the input tax credit in contravention to Rule 36(4) of the CGST Rules, 2017. Kindly recheck and proceed.

Jeet (student) (27 Points)
Replied 24 December 2020

Originally posted by : RAJSHREE MUNDRA
	No need to worry you can reverse itc claimed in advance

But right now those invoices are uploaded by supplier and are showing under 2A. Instead of doing a reversal, can i opt for updating the itc values to 0 for this month? or a reversal is mandatory?

RAJSHREE MUNDRA (CA) (56 Points)
Replied 24 December 2020

The correct way is you should claim itc of the relevant month in the respective relevant month and reverse the excess itc claimed wrongly in the previous month in the reversal column,
rule 36(4) doesn't prevent you from reversal of credit wrongly taken

Jeet (student) (27 Points)
Replied 24 December 2020

Originally posted by : RAJSHREE MUNDRA
	The correct way is you should claim itc of the relevant month in the respective relevant month and reverse the excess itc claimed wrongly in the previous month in the reversal column, rule 36(4) doesn't prevent you from reversal of credit wrongly taken

Okay. Thank you sir for clarifying my doubts. :)