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Wrongly availed ITC and reversed in GSTR 3b, but reversed in a wrong head

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dsahoo S

1 Points Posted on 27 February 2023

One assessee had wrongly availed some amount in Apr2018 due to error, in the very next month I. e. in May2018 he reversed the same and reported in Gstr3B ... 4(B)1...Under rule 42 and 43... but it should be reversed in 4(B) 2...i.e. it should reported in Others culumn

now dept not considering this reversal, hence dept says the itc claimed in Gstr3b is more than Gstr2a, why because the reversal part is not conisered by dept

they are asking payment to that extent

Replies (3)

Quick Summary

An assessee wrongly availed ITC in April 2018 and reversed it in May 2018's GSTR 3B under the incorrect head. The department is not acknowledging this reversal, leading to a demand for payment as claimed ITC exceeds GSTR 2A. However, reversing ITC under the wrong column is considered a procedural error. The assessee should explain the situation to the department via letter and may find relief in appeals if the issue isn't resolved at the assessment stage.

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Posted on 27 February 2023

Reversal under wrong column is merely a procedural lapse. You are not liable for any reversal if you have already reversed even if it is under wrong head.

You should write a letter explaining the reversal made.