GSTR-10 Final return filed in response of suo moto GST cancellation and same final return is filed without reversal of ITC pending in Electronic Credit Ledger
My query can we reverse ITC through DRC-03 for ITC to be reversed for pending ITC in ECL
OR
Apply for revocation of GSTN with the officer and file last GSTR-3B and reverse ITC in return.
OR
File manual return with the officer for ignore the error and reconsider this return
Hi Adi,
Your situation with filing GSTR-10 (Final Return) without reversing the pending ITC in the Electronic Credit Ledger (ECL) after suo moto GST cancellation is tricky but manageable. Here's a detailed approach:
Yes, ITC reversal can be done through filing Form DRC-03 (challan for payment of tax, interest, penalty, or any other amount).
The amount of ITC to be reversed should be paid along with applicable interest (if any).
After payment via DRC-03, the reversal is accounted, and the Electronic Credit Ledger balance reduces accordingly.
This is the standard method to correct ITC that was not reversed in the final return.
If you think the cancellation was done prematurely or in error, you may apply for revocation of cancellationwithin 30 days of the order of cancellation.
After revocation, you can file pending GSTR-3B returns and reverse ITC properly.
This option is viable only if you are within the time limit and there is a genuine reason to continue GST registration.
Filing a manual or revised GSTR-10 is not permitted as per current GST rules.
GSTR-10 is a final return and cannot be revised once filed.
You cannot simply ignore the error; it may lead to further scrutiny or penalties.
Make the ITC reversal payment using DRC-03 immediately to comply with law.
Maintain communication with the GST officer if needed for clarification.
If revocation of cancellation is possible and beneficial, initiate that process quickly.
Avoid filing manual or revised GSTR-10 as it is not allowed.
CAclubindia
