ITC against TRAN I

[MANASH MUKHERJEE]

Dear Sir,

A taxpayer availed ITC againt TRAN 1 under para 5(a) . But actually the credit should have been on 6(a) , i.e. capital goods. How the things can be corrected or is the credit to be reversed by the taxpayer only on the ground that he wrongly filed TRAN 1 .

With regards,

M.Mukherjee.

AI Summary

Taxpayer Misfiles ITC Claim Under Wrong TRAN 1 Section, Potential Penalty Under CGST Act 2017, Section 122 Discussed. A taxpayer mistakenly claimed Input Tax Credit (ITC) under the wrong section of TRAN 1, filing it under para 5(a) instead of 6(a) for capital goods. The first response advises reversing the credit with interest and penalty to avoid a Show Cause Notice (SCN) under Section 122 of the CGST Act, 2017. The second response suggests submitting a written error report to the jurisdictional office and updating the accounting records. The third response notes that the jurisdictional officer cannot rectify the mistake on the portal, and relief may be possible in adjudication due to the bonafide nature of the error.