GSTR9 - Treatment of ITC claimed under wrong head

[TAPAN RAI]

ITC was wrongly claimed under IGST instead of CGST+SGST while filing 3B for Sept 2017. Error detected now during 2A reconciliation. Whether the same can be rectified in GSTR-9 for 2017-18? In what manner?

Thanks & Regards

[KASTURI SETHI]

No. Differential amount (additional liability) has to be paid in cash through From DRC-03 while filing Annual Return. ITC will not be allowed. See Serial 9 below Table No.19 of Notification No.74/18-CT dated 31.12.18. This Notification is comprehensive and worth reading before filing Annual Return.

[TAPAN RAI]

Thank you so much Sir.

My follow-on question is:

Suppose I do not show the CGST+SGST worngly availed in 6B of GSTR-9 and pay the differential tax thru DRC-03.

However, I will also not be able to show the correct IGST which I am eligible to claim - as no additional ITC can be claimed in GSTR-9. This IGST will however reflect in my 2A under 8A of GSTR-9. Hence this ITC would lapse as not availed.

Need your guidance on this issue.

Thanks & Regards

AI Summary

Input tax credit misclassification: pay the tax shortfall in cash; additional ITC cannot be claimed in the annual return. Misclassification of input tax credit under IGST instead of CGST and SGST cannot be corrected by claiming additional ITC in the annual return; the taxpayer must pay the differential tax liability in cash through DRC-03 when filing the annual return and the additional ITC will not be allowed, so any otherwise eligible IGST reflected in reconciliation records will lapse if not availed correctly in the original return.