EXCESS ITC TAKEN 2017-18 WHILE ITC REDUCED IN 2018-19 (INPLACE OF REVERSAL)

This query is : Resolved

RAHUL SAHU (Querist)
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26 November 2022 I HAVE TAKEN 131250 EXCESS ITC 2017-18. SO I HAVE TAKEN LESS ITC IN 2018-19. NOW DEPARTMENT HAS ISSUED ME EXCESS ITC TAKEN NOTICE U/S 61.
THEY HAVE TOLD ME THERE IS NO SUCH PROVISION UNDER GST IT SHOULD BE REVERSED. YOU CAN NOT REDUCE IT IN SUBSEQUENT FINANCIAL YEAR.
KINDLY PROVIDE ME BETTER SUGGESTION AND RULING IN THIS REGARD.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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26 November 2022 It is very difficult to prove that you have reduced the same ITC. You will have to prepare reconciliations of both the years 2017-18 and 2018-19 with GSTR-2A and then prove that ITC taken is actually the ITC already taken. It will also depend what disclosures you made while filing GSTR-9/9C of those years.
If nothing works you can simply take the stand that to claim ITC the condition of matching with GSTR-2A was not required during 2017-18 and 2018-19