ITC Reversal in GSTR-9 Disclosure

[Pankaj Sharma]

Looking for clarification on reversal of ITC presentation in GSTR-9.

Fact: We have claimed ITC for FY 2017-18 on which reversal required under rule 42 and for the same liability created in books says ₹ 10000+10000. Now this reversal has been show as output tax liability in Table 3(a) of Sept 18 and paid accordingly.

Now, we have disclosed this in Table 12 of GSTR-9 and Tax Payable & Paid in Table 14. Is it correct or not?

Or we have to disclose the same in Table 7(c) and difference shall be negative then how paid amount will be disclosed.

Please discuss and provide valuable suggestion.

[Praveen Nair]

Hi Pankaj

The input tax credit in respect of inputs or input services, which attracts the provisions of section 17(1) or 17(2) of CGST Act, being partly used for the purposes of business and partly for other purposes or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempted supplies, shall be attributed to the purposes of business or effecting taxable supplies... follows Rule 42.

The above section categorically mentions that "the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business."

Making provisions and not reversing at the time of ITC would attract interest on payment, refer section 39(9) of the CGST Act on applicability of interest for omission or incorrect data in the stated returns.

Reversal of output liability as mentioned by you in the GSTR-3B and disclosure under Table 12 in GSTR-9 seems ok.

AI Summary

Clarification Sought on ITC Reversal Disclosure for FY 2017-18 in GSTR-9; Rule 42 and Section 39(9) Cited. A forum participant sought clarification on the correct disclosure of input tax credit (ITC) reversal for the fiscal year 2017-18 in GSTR-9. They initially showed the reversal as an output tax liability in GSTR-3B and disclosed it in Table 12 of GSTR-9, questioning whether this was correct or if it should be in Table 7(c). A respondent advised that ITC related to both business and non-business purposes should follow Rule 42, and the current disclosure in Table 12 seemed appropriate, warning that incorrect reporting could attract interest under section 39(9) of the CGST Act.