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Reversal of ITC

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aniket agrawal

2 Points Posted on 23 November 2020

in the last month, gst department issued a notice regarding excess claim of ITC. and after reconciliation it is found that some bills were mistakenly claimed twice. so in the return of October in order to set off those excess claim we proceeded to reverse the ITC of IGST but in the credit ledger we don't have that much IGST. So how shall we proceed?

Replies (2)

Quick Summary

If you've received a GST notice for excess ITC claims due to duplicate billing and lack sufficient IGST in your credit ledger for reversal, you should show the excess as 'Other ITC Reversals'. Any applicable interest, calculated from the credit date to the return date at 18% p.a., should be declared under 'Interest and late fees'. This amount will be automatically computed with your current month's liability. Make the payment, preferably via cash challan, and retain reconciliation records for future assessments.

deepa pg

15 Points Posted on 24 November 2020

Show the Excess claimed under Other ITC Reversals.......... and Interest also shown under Interest and late fees.(from the period you take credit to till date of return .18% p.a. )

No issue if there is no other credit the site will auto compute this with the current month Liability to make the payment. ( add with Output tax liability).Make payment and keep this Reconciliation for future assessment and records.