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Reporting of ITC recersal

18 January 2024

Tabke 4(B)1 and 2 of GSTR-3B sets out specified reversals such as rule 38, 42, 43 and section 17(5) and section 16(2)(b), (c).
How is reversal of ITC for non fulfilment of section 16(1) or under other circumstances not covered in specification above supposed to be made?

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7 Replies

viji (CTO) (33 Points)
Replied 18 January 2024

Through GSTR3B you can reverse these ineligible ITCs

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Mohan Kale (376 Points)
Replied 18 January 2024

Of course, but in which column of which table? Please read my question carefully.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 January 2024

@ Mr Mohan,

Can You elaborate with some more details...??

Bcoz,

As per sec 16(1) ITC is available if it's in furtherance of business...

Then ,
what you ask exactly...?

Mohan Kale (376 Points)
Replied 18 January 2024

As per section 16(1) service recipient should be in possession of tax invoice else ITC is not permitted. If the recipient is not in possession of a genuine expenditure then where to show such reversal of ITC?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 January 2024

Is that reclaim or not...??

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Mohan Kale (376 Points)
Replied 19 January 2024

No. Not going to be reclaimed as the efforts to obtaining tax invoices from supplier bore no fruits and the party does not want any trouble on this account. So, the recipient party want to report this ITC as ineligible.

VIRAAJ VASHISHTH (81 Points)
Replied 23 January 2024

ITC Reversal & Reclaim-Important Changes in August 2023 GST Returns

The Goods and Services Tax (GST) system in India has been a subject of constant evolution since its implementation in 2017. To make compliance easier and more efficient, the government regularly revises and updates its policies and procedures. In August 2023, a significant change is set to take place concerning Input Tax Credit (ITC) reversal and reclaim in GST returns. In this blog post, we'll study the details of this crucial development and what it means for businesses.

What are ITC Reversal and Reclaim:

Before we look into the changes, let's clarify what ITC reversal and reclaim mean in the context of GST.

Input Tax Credit (ITC):

Input Tax Credit is a mechanism that allows businesses to claim credit for the taxes they have paid on inputs when calculating the GST they owe. This helps prevent the cascading effect of taxes and reduces the overall tax burden on businesses.