Reversal of input tax credit

This discussion clarifies the process for reversing Input Tax Credit (ITC) that was wrongly claimed. You can reverse the ITC in your next GSTR 3B return by entering the amount in the 'ITC reversed' column. If the wrongly availed ITC was utilised, interest at 18% or 24% may apply from the date of availment, depending on the specific circumstances. It's important to correctly report this reversal even if no tax liability remains after offsetting.