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Ineligable itc availed but not not reversed - treatment in gstr 9

13 June 2019

The entity has availed some Input tax credit in GSTR 3B of July -March 2017, which are ineligible credit. But the haven't reversed in any 3b till March 2019,

So how to treat these ineligable credit in GSTR 9

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6 Replies

Sai Prabhu Narayanan (Articled assitant ) (161 Points)
Replied 14 June 2019

Hello,

First you need to reverse the ITC claimed with interest of 24% and pay the amount through form DRC-03,Then in GSTR-9 table 7 mention the ITC claimed as Itc reversed . in reversal column

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Manoj Punjabi (Accountant) (273 Points)
Replied 15 June 2019

Dear Sai Prabhu I have similar problem. But wrong ITC was not used as set off against gst payable. Wrong ITC was just an entry in GSTR3B. In that case do we have to pay interest. GST was paid every month whatever due. Please suggest.

Sai Prabhu Narayanan (Articled assitant ) (161 Points)
Replied 15 June 2019

Hello Mr. Manoj

In this case , I need some more information i.e ,Month of claiming the ITC , and whether have a paid you tax liability with ITC in any of the month after claiming the ITC , Then only we can make a move regarding this issue ,If you have made Payment in aforesaid manner then ,I think that you must reverse the ITC in the manner mentioned in this thread above ..

ARCHIT CHONGDAR (n.a) (63 Points)
Replied 15 June 2019

But Sir Table 7 refers to ITC reversed and ineligible ITC as declared in the return filled during the financial year.. Soo Do you really think is it the right place show that as they haven't reversed it during any return of 17-18 or till March 19.. I will make the payment through DRC -03 with interest but confused with how to treat this in anual return and GSTR 9C

Sai Prabhu Narayanan (Articled assitant ) (161 Points)
Replied 15 June 2019

To the best of my knowledge ,I think we can park it in Table 7 , In drc -03 there would be a column which would prompt you for which year your are making voluntary payment in that section you must select F.y 2017-18 and elaborate the Instance like which month ,cgst,sgst,payment . this is the only way to reverse it.