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Reversal of input tax credit

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Student
206 Points Posted on 20 June 2020
what is the procedure or steps to reverse the itc wrongly claimed..?
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On 20 June 2020 at 13:26 Report
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article Assistant
1644 Points Posted on 20 June 2020
Hi Rahul, you can reverse the ITC Wrongly claimed in next GSTR 3B Return.
In the input tax tab, you can give the amount in ITC reversed column.. Interest you can shown In interest and late fee column.
7 Reply
On 20 June 2020 at 13:42
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Student
206 Points Posted on 20 June 2020
What is the interest and late fees rate?
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On 20 June 2020 at 13:58
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Designation
771 Points Posted on 20 June 2020
@ david, why late fee will be levied in case of reverse of wrongly claimed ITC.

@ rahul, in case such wrongly availed ITC have been utilised then you will be liable to pay interest @ 18% from the date of availment.
3 Reply
On 20 June 2020 at 14:46
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article Assistant
1644 Points Posted on 20 June 2020
@ Hemel, There is no late fee for Wrongly claimed ITC... I mentioned that interest should be shown in interest and late fee column.
7 Reply
On 20 June 2020 at 15:43
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accountant
519 Points Posted on 20 June 2020

@ Hemal, Interest @ 18% is for non payment of tax.In case of wrong availment of ITC Interest @ 24% applied.

2 Reply
On 20 June 2020 at 17:39
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Designation
771 Points Posted on 20 June 2020
Can you please share the relevant section and i would request you to understand the scenario when it's 24% is levied.
3 Reply
On 20 June 2020 at 18:22
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article Assistant
1644 Points Posted on 20 June 2020
18% is right. 24% apply only when excess claim of ITC
7 Reply
On 20 June 2020 at 20:00
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Student
206 Points Posted on 20 June 2020
For example if i have Rs.2 lacs (cgst 1 lac and sgst 1 lac)itc which includes wrongly taken itc of Rs. 40k(cgst 20k & sgst 20k). And my output liability is only 50k. so by setting off i don't have any liablity to pay. So how can someone say that i have utilised the wrongly taken itc.??
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On 20 June 2020 at 20:09
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4215 Points Posted on 21 June 2020
At present there is no excess utilised ITC
12 Reply
On 21 June 2020 at 08:12
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article Assistant
1644 Points Posted on 21 June 2020
@ Rahul, here is this case you are not utilised the ineligible ITC. There is no issue. However you have to shown it in the GSTR 3B return and reverse the ineligle ITC...
7 Reply
On 21 June 2020 at 08:58


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