ELECTRONIC CREDIT LEDGER-REG

[Kusalava InternationalLimited]

Our Total Turnover is exempted, by mistake every month we are accumulating our input itc in electronic credit ledger with out reversing as per CGST Rule 42&43.Now in our books we transferred itc ledgers amount to expenditure. but how to reverse credit in electronic credit ledger to tally with our books.

[ANITA BHADRA]

In my view , accumulated itc can be adjusted by adding it to outward liability and the details need to be shown in GSTR 2 ( point 11 )

Since GSTR 2 is presently not to be filed , the detail should be provided in GSTR 3B

[Kusalava InternationalLimited]

we don't have any outward liability.

[Alkesh Jani]

Sir, you may reverse the said ITC at Table 4 (B) (1) of GSTR-3B.

Thanks

[YAGAY and SUN]

We endorse the view of our expert.

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of Shri Alkash Jain.

[Ganeshan Kalyani]

The input tax credit can be reversed thru GSTR 3B in table 4 (B) 1 or 2. The electronic credit will be debited by that amount. Thanks.

AI Summary

Reversal of input tax credit: use GSTR 3B Table 4(B)(1) to debit the electronic credit ledger when turnover is exempt.
Accumulated ITC held in the electronic credit ledger despite exempt turnover must be reversed by reporting the reversal in GSTR 3B-adding the amount to outward liability and recording it in Table 4(B)(1) (or Table 4(B)1/2)-which debits the electronic credit ledger; where GSTR 2 is not filed, these details are furnished in GSTR 3B so tax records reconcile with accounting entries.