Additional Reversal of Ineligible ITC in Table 7E of GSTR-9

[TAPAN RAI]

Dear Members,

Please guide whether we can do additional reversal of ineligible ITC thru Table 7E of Form GSTR-9. This ITC was earlier availed in monthly return Form 3B during 2017-18 but was not reversed till date.

Para 3 of the Trade Advisory Dt. 26.08.2019 says:-

Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately.

In view of this, what would be the correct way to reverse the ineligible ITC and give proper disclosure in either GSTR-9 or 9C.

Thanks & Regards

CA. Tapan Rai

AI Summary

Reversal of ineligible input tax credit must be paid via DRC-03 and disclosed in annual return and audit remarks.
Reversal of ineligible input tax credit cannot be effected through the annual return; taxpayers must disclose the reversal in the annual return's ITC tables, compute the resulting increase in taxes payable, pay the differential amount through the prescribed cash payment mechanism, and reflect the payment and explanation in the annual audit certification.