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Reversal of itc

13 December 2019

Is there any provision that any reversal made during 19-20 on account of wrong ITC availed during 2018-19 shall be setoff from cash balance not from credit balance of 19-20

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5 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 14 December 2019

No....... there is no such provision.
even reversal of ITC can done by filing DRC 03 setoff from Credit ledger

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sujith kumar dasa (banglore) (1496 Points)
Replied 14 December 2019

No such provision, however reversal in next year should be done untill the due dtae for revision of return i.e., september return of next year. If reversal to be done after September return, then do same through DRC-03

Sabita Sahoo (622 Points)
Replied 14 December 2019

There is provision that reversal of ITC shall be added to the output tax liability.what does it mean?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 14 December 2019

As per Section 16 of CGST Act , it's in case if Receptient do pay the supplier within 180 days

Sabita Sahoo (622 Points)
Replied 14 December 2019

When recipient failed to pay the supplier within 180 days,the ITC already availed shall be reversed in col 4B of Gstr3B.If in that period he has more ITC in Table 4 all other ITC column,then net ITC will automatically arrived in net ITC column.Then how it will be added to output tax liability?