GSTR 9 AND 9C - BLOCKED CREDIT OR WRONG CREDIT ADJUSTMENT

[SAFETAB LIFESCIENCE]

Dear Experts,

If any blocked credit/wrongly availed credit found out while filing GSTR - 9 & 9C to be reversed. Shall we reverse the blocked credit/wrongly availed amount in Electronic Credit Ledger through DRC-03 and interest for the wrong credited amount by Cash ????

AI Summary

Reversing Blocked Credits in GSTR-9: Pay Tax via Credit Ledger, Interest in Cash per Section 41(2), Notification 74/2018. A forum user inquired about reversing blocked or wrongly availed credits while filing GSTR-9 and GSTR-9C, specifically whether such reversals can be made through the Electronic Credit Ledger via DRC-03 and if interest should be paid in cash. One expert confirmed that tax payment through the Electronic Credit Ledger is permissible, but interest must be paid in cash. Another expert emphasized that payments must be made in cash according to GSTR-9 and GSTR-9C instructions, referencing Notification No.74/2018. The discussion concluded that self-assessed tax payments via ITC through DRC-03 are valid under Section 41(2) of the CGST Act.