REVERSAL OF ITC FY 2023-24

Yes, correct. This deadline is crucial for compliance with the GSTR-3B return filing for October 2023, which is due on November 20, 2023.            

No fixed "last date" for reversing, but do it soon:

• Sec 16(4)'s deadline (30 November following the FY) limits claiming ITC, not reversing it. Excess ITC can be reversed at any time. Interest under Sec 50(3) at 18% runs from the date of utilisation until reversal, if it was utilised (Rule 88B).

• Reversing in GSTR-3B by the November 2024 return (filed by 20 December) lets you show it correctly in GSTR-9 for FY 2023-24. Later reversals go via DRC-03, with interest.

• If the department detects it first, penalty under Sec 73 (10% of tax, minimum Rs 10,000) or Sec 74 can apply. Voluntary payment before an SCN avoids penalty under Sec 73(5)/(6).