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ITC Reversal

Faheem Akram (802 Points)

09 September 2018

if i have to revese ITC so can i adjust against Current ITC avilable....Interest will be 24% p.a.

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18 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 09 September 2018

Separate column is there for reversal of ITC in 3B put there to Identify later on as for the purpose of better info.

Interest you can pay later when it is demanded while Annual Return or other.

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Vinod Babu (24191 Points)
Replied 09 September 2018

As per section 42(10) of the Act, in case the recipient reduces from his output tax liability the ITC already added thereto for the reason that the supplier has not furnished such liability in his return, such amount would be liable to interest @ 24% as per section 50(3) of the Act.

It can thus be seen that the interest of 24% will be applicable only in one case i.e. where

a. The discrepancy is communicated after matching the returns of supplier and recipient,

b. Such credit is added back to the output tax liability of such recipient

c. Such recipient again takes back such credit before the supplier declares it in his valid return within the prescribed time limit as mentioned above.

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 09 September 2018

Yes... I agreed to Mr Vinod Babu reply...

@ Mr. Faheem Akram.,

I think, You ll Elobrate Your query with some details...

Is Your above said ITC Reversal is "Wrong availed ITC in any previous months or Current month ineligible ITC"...?

** If previous month/s wrong availed then Interest is applicable. You can't adjust current month's ITC. If You are wrongly availed the ITC and it's adjusted to Your output liability then You must pay the liability amount with interest...

So,
Clear Your query.

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Faheem Akram (802 Points)
Replied 09 September 2018

my ragistration was 26/08/2017 but Invoice was issued 17/08/2018 and that time i took ITC of that purchase so what to do?

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 09 September 2018

You need to discuss on the department, they may suggest for revised invoice but as supplier did not agree for the same.

As well as I would like to know in that bill of 17/08/2018 your GSTIN is mentioned?

How's it's possible, when you are not registered on that date.

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(Guest)

Agreed with openion of Vinod Babu and Rohit Tibrewal

RAJA P M ("Do the Right Thing...!!!") (127984 Points)
Replied 09 September 2018

Yes... Better to get revised invoice after the Date of Approved Your registration...

Faheem Akram (802 Points)
Replied 09 September 2018

supplier is refusing to revise Invoice so what to do.???

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 09 September 2018

First check the dates in your query is it correct?

And in the supplier invoice your GSTIN is mentioned?

Please reply to my questions @ Mr. Faheem Akram Ji

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 September 2018

Dear Faheem

Yes , ITC you have claim can be avail by filing ITC 01 .
You can still file ITC 01 as it can be file within 30days from date of registration granted.

Hence file ITC01 & reverse the wrongly claim ITC in your next 3b.

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Faheem Akram (802 Points)
Replied 09 September 2018

#rohit My GSTN is not mentioned that invoice

#pankaj now this tine can i file ITC01

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