ITC availlment

[tejas kulkarni]

one of my client has reversed excess itc in filing DRC-03 on voluntary basis in 2021 for f.y.2019-20. Now can we avail that excess itc reversed ? Because GST act no where specifies time limit of availment of reversed itc voluntarily.

please guide .

[Rajagopalan Ranganathan]

Sir,

Initially, you have reversed excess ITC on what grounds? Now whether the ground under which you have reversed the excess ITC is not valid. If so you have to make a representation to the jurisdictional officer informing him that you are taking back the reversed ITC on the ground that you had reversed the ITC as excess erroneously. You require prior permission from the Department to take back the reversed credit.

[tejas kulkarni]

ITC is reversed on grounds on previous years ITC not available. However ITC was availed within te limit of six months from the end of financial year i.e. before due date of sept return. Now he wants to re avail it.

[Shilpi Jain]

If you have not disclosed this reversed ITC in GSTR-9 of 19-20 you could treat this reversal in DRC-03 as reversal by error of ITC of '21 itself and take it back. Make an intimation to the department of the error that has occurred and mention in that letter that this credit is being re-avalied to rectify the error.

[CA Hemanth Kumar]

Tejas kulkarni,

Apply for refund as excess payment of tax (mentioning the date of DRC-03) so that the department can give you the refund as recredit of input tax credit.

AI Summary

Input tax credit re availment may require departmental permission or error intimation to restore reversed credit Where excess input tax credit was voluntarily reversed via DRC form, the taxpayer may seek restoration either by formally representing to the jurisdictional officer and obtaining permission to take back the credit, or by treating the reversal as an accounting error-intimating the department if the reversal was not disclosed in the annual GSTR 9 and re availing the credit; alternatively, apply for a refund as an excess payment to secure re credit of the input tax.