Input tax credit claimed on the basis input credit wrongly entered

[mathur ramachandran]

Unutilsed Input credit of previous month was again wrongly entered in 3B return of the subsequent month under the Table input claim resulting in duplication. This sort of error has occured on two other occasions as well. The GST due for each month has been paid in cash.Since such accumulated input credit is available in the credit ledger, the GST liability had to be squared off first against such credit thereby the credit in the cash ledger remained unutilised. However, As at the end of Sep-19 return there is no liabilty for GST, Upto the end of Sep-19 return, the credits in various ledgers are as follows- Balance IN CASH LEDGER:is Credit 245596 -Balance in CREDIT LEDGER is Credit 188699 -AGGREGATE of wrong input claim is as at the end of Sep 19 return is 434295 - NOW in the GST 3B return for October-19, I am proposing to reverse the excess input of 434295 which will make the balance in the CREDIT ledger Dr 245596 and which will in turn offset the credit of 244596 in the cash ledger.- Kindly advise whether the step or procedure adopted to rectify the aforesaid errors is correct - If not, can you kindly advise the alternate procedure

Thanking you,

Ca M S ramachandran

AI Summary

Individual Faces GST Filing Error: Duplicate Input Tax Credit Entries Lead to Surplus; Advised Cash Payment for Correction An individual reported an error in their GST filings, where unused input tax credit from a previous month was mistakenly entered again in the subsequent month's return, leading to duplication. This error occurred multiple times, resulting in a surplus in the credit ledger and an unutilized cash ledger. The individual proposed reversing the excess input credit in the October 2019 return. A respondent advised that although the credit ledger shows a surplus, the appropriate action is to pay the duplicated amount in cash and reverse it under ineligible input tax credit to minimize potential legal issues, as the initial claim was incorrect.