Question ID : 40652

ITC Claimed under wrong head

Dear Members, One of our client has claimed IGST credit as CGST/SGST in the month of September 2019. Eg. Purchase Invoice having IGST as 2,20,000 is claimed as 1,10,000 each in CGST/SGST. We found this error in the process of reconciliation of ITC with 2A. As we are yet to file the GSTR 3B for March 2020,can we reverse the CGST/SGST for March 2020 and claim the IGST. (As the CGST/SGST for march is very less reversing the same will lead to a negative figure in GSTR 3B for March 2020. Will this be a problem?) Kindly Advise. Thanks in Advance. Note: We can utilized the wrong ITC claimed for setting of our liability.

Answer ID : 80530

Hi, This will be an issue while filing GSTR-9 and hence it's important to take a corrective action. Since the credit was of IGST there was no excess utilization of credit while paying GST outstanding amounts. Hence, looking at corrective step - partially reverse to the extent credit is available and similarly in the subsequent month too till 2.2 lac is adjusted. This would be reflected on consolidated basis in the annual return for adjustment made post FY 2019-20.

Answer ID : 80542

1. Yes you can reverse the same in March -3b in other reversal column and take input tax credit of IGST. 2. As stated that you had already utilized the same against your liability, then you have to pay the same with interest in March.

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