Clients have excessively claimed ITC during 17-18, but no turnover reported during that year. How to treat such excess claim in GSTR9. Itc as per 2A -IGST16lacs, itc as per 3B igst -14lacs, sgst/cgst- 2lacs each. The ITC of Rs16lacs igst as per 2A, but zero as per books is proposed to be treated as zero in 6B in GSTR9, and the total not utilized in full is to appear in 8E of GSTR9.Kindly advice. Second, what should be the treatment of 2lac each of sgst/cgst claimed in 3b but zero as per 2B and utilization as per books also zero. Should i show zero in 6B which will atomatically be reflected in 8B and therefore difference comes to zero in 8D as well . But we have been adviced to make payment with interest in drc03. Question is are we supposed to make payment of the excess sgst/cgst claimed though it was never utilized in discharging tax liabilities as no turnover during that year. Kindly advice and thank you in advance.
Yes sir you need to reverse the ITC and pay the amount along with interest.
You can just reverse the ITC and not pay any interest because interest is on wrong utilisation of credit and you have just availed credit and not utilised it so you can pay it without interest but AO will litigate on it so you must be ready for litigation and you must win it.
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Thank you
Hello,
You will have to reverse the wrongly claimed ITC of CGST/SGST in 3B of Rs. 2 Lakhs each.
Interest penalty won't be charged to the amount to be reversed since you have only claimed and not utilised the ineligible ITC. (M/s Commercial Steel Engineering Vs State of Bihar (Patna High Court))
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
You just need to reverse the ITC. There is no need to pay interest for the same.
Hi
As per the press release dated 3.7.19, you have to file table 6 and 7 as what you have reported in GSTR 3B, whether correct or not.
Reversals, if any, has to be done through DRC-03. The payment in DRC-03 could be done through utilizing credit ledger balance.
We may discuss the issues further through phone consultation.
For the first question reverse it with DRC - 03 along with interest
For second question if there is no such entry in book than certainly it must be reversed with DRC - 03 along with interest
Why there is no turnover in 2017-18?
