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Capital Goods

MURALIDOSS (INCOME TAX PRACTITIONER) (1314 Points)

05 December 2019

I WAS WRONGLY CLAIMED ITC FOR A CAPITAL GOODS IN GSTR 3B , HOW TO RECTIFY THAT ITC IN FUTURE GSTR 3B?

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21 Replies

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 05 December 2019

You can reverse the wrongly claimed ITC with Interest...

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prasad Nilugal ( GST Practitioner & Accounts ) (14568 Points)
Replied 05 December 2019

When ?. what is the date of Invoice , you wrongly Claim ITC .

SOWJANYA M (840 Points)
Replied 05 December 2019

@ raja if reversal of ITC is done then calculation of interest is applicable?

if wrong ITC on November taken, then reversal of input will be done in December. if so what will be interest calculation?

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 05 December 2019

If availed 10k ITC wrongly then it will be reverse and interest will be payable on 10k amount @ 24%...

@ Mrs. SOWJANYA.,
Are You a senior citizen or Super Senior...?!

1 Like

MURALIDOSS (INCOME TAX PRACTITIONER) (1314 Points)
Replied 05 December 2019

In this case for the month of May 19 GSTR 3B mistakenly claimed input tax for capital goods considered salable item. But GSTR 1 NOT filed so far, can I file the correct amount now?

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 06 December 2019

Dear Muralidoes

You have wrongly availed the ITC :
1.Reverse the same in current gstr 3b & Pay interest on same @ 24% (As per section 50 CGST act)
or
2. No need to reverse in GSTR 3B of current month ,can be paid in cash ledger & file DRC 03 online

Yes file your GSTR1 correctly. (Nothing to do with wrongly claimed ITC)

1 Like

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 06 December 2019

@ Mr Pankaj Rawat Ji.,

Why it's under DRC 03???

MURALIDOSS (INCOME TAX PRACTITIONER) (1314 Points)
Replied 06 December 2019

Pankaj sir,

I have no Credit in my ledger at present. That ITC I was wrongly claimed (i.e 9000/- + 9000/--) and declared also sold in the same month. It means I take 18000/- ITC and sold also 110000/- +( 9800+9800) .

So, now I have to pay interest for the ITC AMOUNT (18000) OR (19800) ? Also that mistake was May month 19. Now June and July only file August Not filed GSTR 3B .How to do? please....

18000 x24% =4320/12 x ????.

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 06 December 2019

Bro,

You are wrongly claim ITC 18000. If You are not claimed or entered in ITC column then You will pay Rs. 19600. Right. Now, You only paid rs. 1600.. right...

Then You must be Paid reverse (or paid0 with Interest @ 24% for the amount Rs. 18000

If it's may then

18000 x 24% / 365 x No.of days (upto date or when you date of pay)

1 Like

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 07 December 2019

@ Sh Raja ji
As per Section 73 read with Rule 142 of CGST Act , Excess claim ITC can pay in cash by filing DRC 03 , moreover many circular being issued ie 94/2019, 71/2018, 58/2018 etc where any reversal of ITC is to be done , have to file DRC 03.

So you have option either reverse it in 3B or can file DRC 03

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RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 07 December 2019

Okay Thank You for the Reference Dear Mr Pankaj Ji...

The said formalities may be apply into any periods...? no need considering in GSTR 3B...?
means

if I excess claim in March and will reverse in April...?
or

Excess claim in October and will reverse in November...?

is it applicable to sales values missed in previous years or current years...?

Also why about if a dealer (& composition dealer ) missed sales value in FY 18-19...?

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 07 December 2019

Dear Mr Raja Ji.
The Tax payer has both option Either reverse in 3B or Pay by DRC 03 , the same has been suggested in my reply above

Yes if FY is changed any ITC need to reverse pertaining to previous fy then in my view (Strongly recommend) that should reverse by filing DRC 03.
Because else you need prepare reco statement for FY

RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 07 December 2019

Yes... I see the reply & recommend by you...

What about the sale values as per my query for both regular & composition?

why it's not through GSTR 3B?