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GSTR9 Reversal of ITC

Anuraag Agrawal (21 Points)

14 March 2024

How can i adjust itc difference in GSTR9?

For example

Table 6(A) shows 10000 IGST as per 3B
Table 8(A) shows 7000 IGST as per 2A

How can i pay 3000 IGST and show same in GSTR9? Those excess ITC is claimed through All Other ITC in 3B

Should i report it under 7(H1) as Ineligible ITC?

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CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13706 Points)
Replied 14 March 2024

Let the difference appear in GSTR-9 and pay the same though DRC-03 with interest if utilized under rule 88B.

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Money Money (413 Points)
Replied 14 March 2024

Certainly! Adjusting the Input Tax Credit (ITC) difference in GSTR-9 involves reconciling the ITC claimed in GSTR-3B with the ITC available in GSTR-2A. Here’s how you can handle the situation you described:

Excess ITC Reported (Table 6(A) > Table 8(A)):
If the ITC claimed in GSTR-9 (Table 6) is more than the ITC in GSTR-3B (Table 8), you need to reduce the excess amount from Table 6B/6H of GSTR-9.
Report this reduced amount in Table 8C of GSTR-9.
Ineligible ITC Claimed Through All Other ITC in 3B:
If the excess ITC claimed in GSTR-9 was originally claimed under “All Other ITC” in GSTR-3B, you should report it under Table 7(H1) as Ineligible ITC.
This ensures that the ineligible ITC is properly accounted for and reconciled.

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