TaxTMI 
TaxTMI 
I am filing NIL RETURN of a client since 2017-18 , but in the F.Y. 2019-20 in GSTR-3B I have TAKEN ITC instead of NIL RETURN. what is the treatment for this?
Whether I will be liable to pay taxes?
ITC ENTERED WRONGLY IN NIL RETURN
18 Aug 2019 
7 Replies 
2868 Views Asked by
Input tax credit entry error requires reversal or tax payment; correction can be effected in the annual return.
If taxable outward supplies existed, declare them, pay the tax and adjust ITC; if only exempt supplies and no prospect of taxable supplies, reverse the ITC so it is treated as not taken. Communicate with the jurisdictional officer and correct in the annual return. A cited High Court decision held that a mere entry of ITC in return forms does not amount to availing the credit, supporting reversal without interest where the credit was not utilised. (AI Summary)
If taxable outward supplies existed, declare them, pay the tax and adjust ITC; if only exempt supplies and no prospect of taxable supplies, reverse the ITC so it is treated as not taken. Communicate with the jurisdictional officer and correct in the annual return. A cited High Court decision held that a mere entry of ITC in return forms does not amount to availing the credit, supporting reversal without interest where the credit was not utilised. (AI Summary)