Wrong ITC entry in GSTR2B

One wrong entry of ITC showing in GSTR2B, supplier wrongly entered our GST number.

1) How to reverse this ITC in GSTR3B? 

If we reverse this ITC in current month, our ITC claim will be correct.

2) But suppose the said supplier reverse it in next month by amending GST number to give credit to actual customer, then our actual ITC of next month will show lesser ITC by that amount. What shall we do in that case?

Because we already reversed that ITC in previous month, now reversal by supplier means double reversal of our ITC.

Please guide.

 

Replies (1)

1. Reversing ITC in GSTR3B: - You can reverse the wrong ITC in the current month by debiting the ITC ledger and crediting the liability ledger. - In the GSTR3B return, report the reversal in the "Adjustments" table (Table 13) under "Additions" (debit). 2. Impact on next month's ITC: - If the supplier corrects the GST number and reverses the ITC in the next month, your ITC claim for that month will indeed be lower by that amount. - To adjust this, you can claim the corrected ITC in the next month's GSTR3B return by debiting the liability ledger and crediting the ITC ledger. - Report the corrected ITC in the "Adjustments" table (Table 13) under "Less: ITC Reversed" (credit).. - Keep a record of the incorrect ITC, reversal, and correction to justify the adjustments in your GSTR3B returns.

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