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ITC reversal and reclaim

D G MOHAN (PARTNER) (171 Points)

11 October 2023

Invoice issued in August goods received in September. In 3B August returns can we reverse the GST amount in 4 B2 and reclaim in September returns in 4 D1

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11 Replies

Jitendra Peshwani (13 Points)
Replied 11 October 2023

Why, in the first place, would you reverse GST?

In August month, you will not claim ITC for the goods that you haven't received. You will claim ITC only when you have received the goods and you have the Invoice, which in your case, is in the month of September. So you will Claim ITC in the September period.

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D G MOHAN (PARTNER) (171 Points)
Replied 11 October 2023

In that case figures of 2B and 3B of both months will not tally

Jitendra Peshwani (13 Points)
Replied 11 October 2023

Yes, Correct. There will be unclaimed ITC reflecting under 2B in the month of August which can be claimed under 3B in the month of September. And then it will automatically get tallied.

Suresh Kumar (Account) (403 Points)
Replied 12 October 2023

Originally posted by : Jitendra Peshwani
	Yes, Correct. There will be unclaimed ITC reflecting under 2B in the month of August which can be claimed under 3B in the month of September. And then it will automatically get tallied.

correct option

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D G MOHAN (PARTNER) (171 Points)
Replied 12 October 2023

Hope no notice will come if September 3B is Rs 100000 and 2B is 10000

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sabyasachi mukherjee (27574 Points)
Replied 12 October 2023

Itc reversal is possible.

Jitendra Peshwani (13 Points)
Replied 12 October 2023

Even if you get notice under DRC-01B, you can reply and explain in that notice that you have claimed, Unclaimed ITC of previous month and there would be no problem, because it is genuine ITC.

Rajendra Prasad (Employee Private) (1867 Points)
Replied 12 October 2023

Please go through circular 170/02/2022-GST, Dt.06th July 2022, where it has been clarified that any reclaimable ITC related to the ITC available in Form GSTR 2B has to reverse in Table 4(B)(2). And while availing ITC has to sum-up with Table 4(A)(5) and also has to report in Table 4(D)(1).