27 September 2022
Hi, Sir we are running the construction business without ITC and 5% 0r 1% GST payable for non affordable. Sir at the time of 3B filing and payment i have put the ITC into the in eligible table.Even after this ITC was not nullified. Due to this my cash credit was not deducted and the Electronic Credit ITC was got adjusted for Q1(April'22 -June'22). Kindly guide me can I reverse the utilized ITC and can adjust through Cash Ledger in Q2(July'22-Sept'22) without any penalty and interest.
1) Reversed ITC which is said above is CGST-Rs.3,37,032/-, SGST-Rs.3,37,032/-, and IGST-Rs.38,921/-. 2) Out Put payable is CGST-Rs.23,886/-, SGST-Rs.23,886/- .
28 September 2022
Yes, reverse the ineligible ITC and you can adjust through cash ledger in Q2. Interest payable to the extent of output tax payable as stated in 2 above. No penalty.
CAclubindia
