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Reverse itc

Hachika Machika (11 Points)

16 April 2018

I have to cancel gst, my supplier missed some invoice for which i have claimed ITC,

Do i need to reverse claimed itc in 3b or should fill form 16 as it is to request for cancelation

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5 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 16 April 2018

But before cancellation u hv to clear off ur liability till that date... So reverse ur itc in gstr3b and pay tax then apply for cancellation mam

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Hachika Machika (11 Points)
Replied 16 April 2018

and do i need to pay tax on stock held while filing for 16,

Divakar (Student CA Final ) (11857 Points)
Replied 16 April 2018

As per Section 29(5) of the CGST Act 2017, the registered taxpayer must pay a considerable amount when the registration is cancelled, by the means of debit in the electronic cash ledger which must be equal to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher.

Hachika Machika (11 Points)
Replied 18 April 2018

Sir not able to return Itc because return is more than input and values are going in negative and portal is goving error for that, So should proceed for cancellation directly without returning excess itc??