ITC ENTERED WRONGLY IN NIL RETURN, Goods and Services Tax - GST

[Manali Sharma]

I am filing NIL RETURN of a client since 2017-18 , but in the F.Y. 2019-20 in GSTR-3B I have TAKEN ITC instead of NIL RETURN. what is the treatment for this?

Whether I will be liable to pay taxes?

Posts / Replies

[Ganeshan Kalyani]

Tax is payable on taxable supply. If you have any taxable supply then furnish the same and then take input tax credit. Further, pay net tax liability.

[Himansu Sekhar]

You can write to jurisdictional officer and reverse the same. Final correction will be in annual return

[KASTURI SETHI]

If your client deals in exempted outward supply only and there is no possibility of supply of outward taxable supply in near future, reverse the credit entry with out payment of interest. Credit reversed tantamounts to credit not taken, if not used.

[Ramesh Kothari]

You hv to pay the tax with interest

[Hasmukh Patel]

As per last High Court decision, if ITC is not utilized, then no require to pay interest on it. Only reverce ITC.

[Ganeshan Kalyani]

Sir, please mention the name of the case law for easy reference of our readers.

[Himansu Sekhar]

Commercial steel engg corporation. case = 2019 (7) TMI 1452 - PATNA HIGH COURT. In this case the reversal of the credit in TRAN-1 was done. Hon'ble Court held that the ITC was not availed by the party by mere entry in the TRAN-1