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ITC taken wrongly

165 views 5 replies

Indira

1398 Points Joined May 2014

In June 2019 ITC to the extent of Rs.3,42,299 was taken wrongly and future GST payments were adjusted against this ITC. How to reverse it? Can i reverse while filing March GSTR 3B. Do i have to pay interest or penalty? Also ITC relating to last year to the extent of Rs.2280 wrongly taken is not reversed. Can i reverse previous financial year ITC? How to reverse it?

Thanks

Indira K V

Replies (5)

sunil arora

54 Points Joined March 2017

Yes you cam reverse in March 3B Return. You need to pay Interest under section 50.

Last year ItC need to paid through DRC 03/ now as reversing in returns is time barred now...

KRISSHNAN KP

4215 Points Joined February 2018

First you have to correct with march return

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Partially Agree with Mr Sunil Arora.
can Reverse in GSTR 3B of march with payment of interest @ 24% as per Section 50 of CGST Act .

As per the last proviso under Section 39 of CGST Act , that any such rectification can be done by September month return following the end of Fy .

So the time barred will be effective only after September 2020 for Fy 2019-20 .
Hence not required to file DRC 03.