GST eligible ITC personal Item, Goods and Services Tax - GST

[sunando ghosh]

Freelancer registered with GST having very few transactions. One invoice raised for service delivered to client every month and sometimes few purchases invoice for goods /inputs to be used in freelance business.

By mistake in month of June 2022; ordered an item from amazon using GST number above but item was meant for personal use.

The ITC on this appeared in GSTR-2B and consequently in GSTR-3B for June 2022.

To make sure I do not claim this ITC as its for personal item - I deleted the amount in eligible ITC in Table 4A (5) All other ITC column and filed my GSTR-3B.

So far so good.

Last month i returned the item to amazon and therefore now its appearing as ITC reversal in GSTR-2B and GSTR-3B for July 2022.

If i try to delete figure in ITC reversal in GSTR-3B system errors saying it’s not allowed as its reversal and I cannot reduce figure.

Also, if I add unclaimed ITC in figure of eligible ITC now it errors saying we cannot increase ITC as bcz it flows from GSTR-2B.

But if i don’t nullify this; i end up paying GST on returned item on which i never took ITC in first place.

Any way out?

Posts / Replies

[Ganeshan Kalyani]

Sir, the field in table 4(A)(5) in 3B is editable. The amount which you want to add here need to be also shown in table 4(D)(1)

[sunando ghosh]

Reply to Ganesh Kalyani -

yes the filed appears editable but u will get errors if u try to input value see screenshots

https://i.postimg.cc/XJjzVNy3/1.jpg

https://i.postimg.cc/MT3dq7Sb/2.jpg

[Kunal Agrawal]

System will show error. Just ignore it. If any notice is issued for non-reversal, you have to simply show that earlier ITC was not taken so not reversed now.

[Ganeshan Kalyani]

Yes, Sir. It is an alert given to the taxpayer that there is significant variance in the amount punched v/s the amount auto-populated.. You can very well fill up amount as per your working and file return.

[Shilpi Jain]

Agree with the experts. proceed to file after editing and in case any query comes from the department it can be explained