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

Input Tax Credit utilization may cover self-assessed liabilities in annual returns, permitting reversal via credit ledger despite rule requiring cash.
Where blocked or wrongly availed input tax credit is detected before issuance of any show cause notice, payment of the resulting self assessed output tax by debiting the Electronic Credit Ledger via FORM DRC 03 is consistent with the statutory rule permitting utilization of ITC for self assessed tax; this statutory principle prevails over conflicting amendment rules that prescribe payment from the electronic cash ledger, while interest on the reversal is to be discharged in cash.