Question ID :
44599
Incorrect reversal of ITC
ITC wrongly reversed in Table 4(B)(1) instead of Table 4(B)(2). How to correct the same. Any option
Posted by
SURAJ KUMAR CHOUDHARY
on
Jan 19, 2024
Filed Under
GST
If and when itc become eligible, claim credit, as your credit will exceed 2B, if you get notice, explain the same
as you are not claiming excess credit you should not have any problem
Posted by
CA Shrawan Suthar on
Jan 26, 2024
Answer ID :
85322
Reclaim the ITC in Table 4(A)(5) which was wrongly reversed under Table 4(B)(1)- Permanent reversal.
There would be a difference in the GST portal captured in Table 4(A)(5) value which is flowing from GSTR-2B in the month in which the correction is being made (by manually entering the wrongly reversed ITC)
You may get a notice in DRC-01C, for the difference in ITC available in GSTR-2B and ITC availed in GSTR-3B. Which need to be replied promptly by specigying the reason that it was a procedural mistake, that the eligble ITC which was supposed to be temporarily reversed in Table 4B(2) has been incorrectly shown and reversed permanently in Table 4(B)(1).
Failure to reply the same, will prevent you from filing the next month's GSTR-1.
Cases which can be relied upon: {to be quoted in the letter reply]
Procedural mistakes cannot take away the substantial benefits.
ABM KNOWLEDGE LTD. Versus COMMISSIONER OF CUS. (APPEALS), MUMBAI-III it is held that “There is no dispute that lapse is there on the part of the Appellant, but it is merely procedural lapse and due to that substantive benefit of Cenvat Credit cannot be denied to the Appellant”.
Hon’ble High Court of Rajasthan in the matter of National Engineering Industries Ltd [2016-TIOL-922-HC-RAJ-CX] held that substantial benefit cannot be denied because of procedural irregularity
Posted by
SREENIVASULU THULASIRAM on
Feb 11, 2024