GST ITC CREDIT REVERSAL BY MISTAKE - can we take now in JUNE 19

[venkataraman swaminathan]

DEAR SIR

Good Morning

While Updating GSTR-3B in GST Portal for the month of March 2018 , by mistake ,

by oversight, in data entry , we updated an entry against ITC Reversal column for a sum of ₹ 65000 + ₹ 65000 CGST / SGST and our ITC Credit is reduced to that extent in the Portal and we paid cash for the GST Payable due amount and filed our GSTR-3B return for March18.

Now This mistake is highlighted and bring to surface while doing Reconcilatino of GSTR-9 / 9c for 17-18 year . Now we are in problem of ₹ 1.3 Lacs as short ITC Credit availament in 17-18 year due to data entry error in GST PORTAL March 18, compared with BOOKS & GSTR-3B & GSTR 9 autopopulated data.

Request Experts guidance on the above mistake.

1) can we take ITC credit of ₹ 1.3 lacs now in JUNE 19 in GSTR-3B and can we utilise for our GST payment for JUNE 19 .

2. (or ) can we apply a refund by manually with the GST Dept.

3. or Suitable guidance to get back / avail the ITC in our books due to data entry error in March 18.

Submitted for kind guidance please.

thanking you

v Swaminathan

[Prudhvi Jakkula]

I suggest one practice, even though not legal.

Consider that reversal is for not complying 180 days payment rule. Means if taxable value along with tax has not been paid to the seller within 180 days then credit should be reversed along with interest. But after payment of consideration to seller then you can avail that reversed credit. In this case there is no time limit for availing ITC.

Treat that reversal as 180 days reversal. So you can claim credit as and when you want.

[KASTURI SETHI]

In the situation explained, neither re-credit nor refund is time barred. Refund can be claimed under Section 54 (1). Period of two years has not elapsed. Once an assessee has availed ITC on the strength of prescribed document, it will never become time barred for the purpose of re-credit i.e. bar of time limitation will not apply. If you have reversed ITC due to oversight or you have paid tax in excess in cash by mistake, it does not mean you should suffer loss.Both the lapses will not hit substantiative right. Better option is to take re-credit. The Common Portal System will accept it. It is itself intimation to the department.The path of claiming refund is tedious. However, if you have any apprehension, you may take re-credit and intimate the jurisdictional GST Officer by way of a letter and get signed and dated acknowledgement. All docs in this context should always be handy, especially for audit.

There are case laws on this issue but these pertain to pre-GST era.

[venkataraman swaminathan]

Dear Sir/ Experts

Thank You very much for the proper guidance on the issue highlighted on ITC .

Thanks

v. Swaminathan

[KASTURI SETHI]

Prescribed docs for availment of ITC are cheques. It is assessee's money and cannot be forfeited because of human error or procedural lapse/technical lapse.

[Harsh V]

Hi,

I have the same issue that i had mistakenly entered normal itc in reversed itc column. Can i re-claim it in GSTR-9 or i have to claim it through GSTR-3B?

Thanks

AI Summary

User Seeks to Reclaim Mistakenly Reversed ITC; Options Include Re-credit or Section 54(1) Refund Application A user mistakenly reversed an Input Tax Credit (ITC) of 1.3 lakhs in their March 2018 GSTR-3B filing, leading to a shortfall. They seek advice on reclaiming this credit in June 2019. Respondents suggest treating the reversal as a 180-day payment rule reversal, allowing the credit to be reclaimed anytime. Another option is to apply for a refund under Section 54(1), as the two-year period has not elapsed. It is recommended to take re-credit and notify the GST Officer, as the portal will accept it. Manual refund claims are considered tedious.