ITC Reversals in GSTR3B

[Prem Gomathy]

This is the case of a hospital clinic filing under QRMP scheme. While filing GSTR-3B, the Gross input tax credit comes from GSTR-2B.

Credit which cannot be taken has to be reversed. We have 2 options to reverse credit. First option is to reverse u/s 42 and 43. Another option is to reverse under 'Other Reversals'

So the questions are:

i) There are input goods/services that are fully used to supply exempt services. Under which of the 2 options above is such ITC to be reversed.

ii) What reversal is to be shown in 'Other Reversals?'

iii) Whether instead of considering reversals,we need to consider such credits are ineligible credits?

AI Summary

Debate on ITC Reversals in GSTR-3B for Hospitals: Sections 16, 17, 42, and 43 Under GST QRMP Scheme A discussion on a forum addresses the issue of input tax credit (ITC) reversals in GSTR-3B filings under the Goods and Services Tax (GST) for a hospital clinic using the QRMP scheme. The primary concern is whether ITC used for exempt supplies should be reversed under Sections 42 and 43 or 'Other Reversals.' Participants debate whether such credits are ineligible and discuss procedural nuances, including the implications of Sections 16 and 17 of the GST Act. The conversation also touches on the reversal of TRAN-1 credits and the need for clarity from tax authorities to avoid revenue loss.