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ITC Reversal of 2017-18

17 January 2019

ITC inadvertently claimed in 2017-18, but not reversed till September 2018's 3B . Can we reverse it in December 2018's 3B ?

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9 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 17 January 2019

According to me first, wait for an annual return of F.Y. 2017-18

If any adjustment Table than adjust in annual return

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rajat jain (na) (25 Points)
Replied 17 January 2019

Yes you can reverse in the return GSTR-3B upto 31.03.2019

Vaibhav DHingra (128 Points)
Replied 17 January 2019

Dear Rajat,
But order has been issued in respect of sec 16(4) for claiming of ITC and sec 37 (1) for rectification in GSTR 1 .
Nothing has been notified for reversal of ITC . Sec 39(9) still remains same as it provides all errors omissions shall be rectified till filing of September 2018's return

shailendra shukla (Bhopal) (1741 Points)
Replied 17 January 2019

it's better to reverse the itc because it's only increasing your interest liability on the amount you claimed wrongly @ 24% p.a which is also huge

narendra (Accountant) (281 Points)
Replied 17 January 2019

You can reverse the excess ITC by reporting the same under GSTR-3B > Table 4 > Section B (ITC Reversed)

If it pertains to anything other than Rule 42 & 43 of CGST/SGST Act, then report it in "(2) Others".
(for, e.g. excess ITC on inward supplies, excess ITC reported and c/f through TRAN-1, ITC related to inward supplies unpaid for more than 180 days, etc.)

Calculate and add interest on the same in Table 5.1 of GSTR-3B.

Even though the ITC pertains to FY 2017-18, you can still report the same in current period. Some taxpayers have received notices w.r.t. short reporting of Tax Liability / Excess Credit of ITC for FY 17-18 and were advised to pay the same /utilise the credit by reporting it in current 3B returns.

I Agree to Mr. Shailendra. Further delay in reporting will simply increase your interest liability.