ITC mistakenly claimed

24 May 2023

What to do if a supplier who is not eligible to claim ITC, mistakenly set-offs all his outward supply through ITC showing is credit ledger?

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14803 Points)
Replied 24 May 2023

You have reverse input tax credit wrongly taken with interest in GSTR3B .

Rajnish Agrahari (26 Points)
Replied 24 May 2023

Sir, can we rectify this using DRC 03, by paying the liabilities today itself to save the penal interest on the outward tax liability.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 May 2023

Yes you . in GST interest is applicable day wise hence interest @ 18% will applicable from the date of wrongly claimed ITC till you file DRC 03 .

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sabyasachi mukherjee (27579 Points)
Replied 25 May 2023

It's better not to take such input credit.Kindly reverse it.

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