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Reverce ITC through filing of DRC - 03

rajesh jha (64 Points)

03 November 2018

In sep. 2017 i have taken excess credit of 110000 in cgst and sgst.
Can i reverce it through filing of DRC - 03.

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10 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 04 November 2018

Yes you can.....,

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Sanitta joy (23 Points)
Replied 04 November 2018

whether DRC 03 available online?
DRC 03 is mandatory for reverse ITC.

rajesh jha (64 Points)
Replied 04 November 2018

DRC 3 is available on portal

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 04 November 2018

No you can also reveres the ITC in GSTR3b,
yes its option available can also reverse ITC by filing DRC 03

robin garg (ipcc) (275 Points)
Replied 04 November 2018

Adjust it in gstr 3b, drc 3 is for making payment against notice u/s 73 or 74 not for reversal of credit

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gupta gopavarapu (109 Points)
Replied 04 November 2018

As per section 73(1)
Where ITC has been wrongly availed or Utilized for any reason other than the reason of fraud.
As per section - 73(5)
Before serving of notice by department you can pay tax along with interest @ 24%pa as per section-50(3) using above said DRC-03 Facility and also need to inform the proper officer in writing of such payment.

If this is the entity having Refund - u advised not to reverse in GSTR-3B because it will reduce eligible ITC of month ur going to reverse and again u cant claim refund of above 1,10,000.

rajesh jha (64 Points)
Replied 04 November 2018

Every month i have excess itc on gst portal (More than 1.5 lakh) and today my total itc on gst portal is 313700.
When i reverce my itc through DRC 03 then i have to laible to pay interest if i am not utilising the itc which i have wrongly claim.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 05 November 2018

@ Gupta Golavarapu
if the Taxpayer has wrongly claimed the ITC which is being reflected in his credit ledger then why cant he reverse the same in 3b.
Even thoufh a circular was issued in regard to reversal of inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B. (Circular no.58/32/2018) , so i think it can be reverse in 3b also , but... as 3b is interim form & ultimately in future option for such reversal will be made by DRC 03 only but as of now you can also reverse the same under 3b