TMI BlogReversal Of ITCX X X X Extracts X X X X X X X X Extracts X X X X ..... One of our client has claimed ITC on Purchases even though he is not required to claim as all sales are exempted sales. And till date he has not reversed ITC on same. So How to show this impact in GSTR-9 . Do i need to reverse in Current month or should it be paid in DRC-03 . - Reply By Shilpi Jain - The Reply = Get it reversed by utilising available credit in DRC-03 before filing GSTR-9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by selecting option 'Other'. If not utilised no interest implication should arise. - Reply By KASTURI SETHI - The Reply = See Notification No.74/18-CT dated 31.12.18 (Serial 9 above Table No.17). It is mandatory to be paid in cash through DRC-03 . - Reply By YAGAY andSUN - The Reply = If the amount is unutilized then interest would not be payable. - Reply By Ganeshan Kalyani - Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Reply = The government should come up with further clarifty on the GST return form. The querist has not utilized the credit. He has only availed. As such there is balance in his electronic credit ledger. The Input tax credit is nothing but the tax already paid by him to his supplier of goods or services. Now, as per provision he has to pay vide Form DRC 03 will be additional payment. - Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y By Shilpi Jain - The Reply = Yes the notification says so but there is no such restriction in law in this regard. Further the said instruction says when paid as part of reco or GSTR 9 .. but if the same is reversed as part of GSTR 3B or for other reasons in DRC 03 then it could be said that the instruction is not available. Further there are case laws under earlier law which state that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reversal of itc is as good as itc never availed Considering this it can be paid through itc balance - Reply By Pavan Mahulkar - The Reply = As per Section 73(5) or 74(5) 5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. Before Issuance of Notice in Form DRC-01 under section 73(1) of CGST ACT can self ascertain the tax liability and pay the same vide DRC-03. While paying the same the dealer may utilize the Credit ledger or cash ledger.. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is mandatory to utilize the cash ledger only to pay the liability as ascertained at the time of Annual Return.. - Reply By Ganeshan Kalyani - The Reply = I have attended a seminar recently where the speaker was of the opinion that if one can correlate the input tax credit available now in electronic credit ledger is the credit pertaining to the period before which the liability have raised t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen input tax credit can be reversed through credit. In this case, I guess it is possible as the querist has no liability. - Reply By Ganeshan Kalyani - The Reply = Generally, the taxpayer has liability and input tax credit all the time the supplies are taking place. In such cases, the proving becomes difficult and hence it is the best way to reverse credit is by resorting to pay through DRC-03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Reply By Himansu Sekhar - The Reply = Should be through DRC03 - Reversal Of ITC - Query Started By: - Tejas Kumar Dated:- 16-8-2019 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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