Reversal of ITC

Hello

We have availed GST credit in April month. closed gst input  ledger by transferring the same to Electronic credit ledger.

in sep realized its, ineligible itc that we had availed in April. So from the itc of Sep, deducted ineligible itc of April while filing GSTR3-B of Sep.

Now for deducting ineligible itc availed from April what rectification entry should i pass? 

Expenses amount (with the amount of ineligible itc) Dr

To Electronic Credit Ledger A/C  

               OR

Input GST A/C Dr

To Electronic Credit Ledger A/C  

Please advise

 

Replies (3)
Quick Summary
This discussion addresses the correct accounting entries required when a business needs to reverse Input Tax Credit (ITC) that was incorrectly availed and transferred to the electronic credit ledger. The user seeks advice on rectifying past GST filings by debiting an expense account or the Input GST account to reflect the ineligible ITC.

1st entry is right

but then if i see debit side of input gst ledger, it will show me total including ineligible itc because no reverse entry has been done with this ledger. (input availed, transferred to Ele. credit ledger & reversal shown by debiting expense account)

i have to subtract it manually  from the total of input gst ledger to arrive net ITC ?

Expense A/c Dr
To ITC A/C. Cr.

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