INELIGIBLE ITC IN GSTR3B

[SIVARAMA KUMAR]

Dear experts,

In GSTR 3B return, any amount shown in ineligible ITC column ( not reversed ) where will it get reflected. The EC ledger remain the same and no liability is reduced in GSTR-2A, also. however it gets added to the ITC claimed for the month. when viewed in the provisional claimed and eligble ITC summary.

Please clarify

AI Summary

Ineligible Input Tax Credit not reflected in electronic credit ledger; reconcile returns by adjusting disclosures for accurate ITC.
Ineligible Input Tax Credit reported in the GSTR 3B disclosure column does not affect the Electronic Credit Ledger and functions only as a disclosure; the portal's comparison tool may add disclosed ineligible amounts to credited entries when comparing claimed ITC with purchase records, producing reconciliation differences. To correct ledger and return reconciliation a taxpayer should include the ineligible amount in the credited entries, effect the corresponding deduction, and then disclose it as ineligible ITC so that available credit and reconciliation with purchase records align.