DRC 01 for Ineligible Credit

[RAGHAV SHARMA]

Hello Experts,

ITC on Motor vehicle is not claimed in GSTR-3B. Department issued DRC-01 on the basis that ineligible credit is not shown in GSTR-3B nor in GSTR-9. Is it valid to issue DRC-01 even for the ITC which is never claimed?

Kindly provide guidance on above matter

Thanks and Regards

Raghav

AI Summary

Taxpayers Urged to Verify GSTR-3B Entries Amid DRC-01 Notices for Ineligible ITC Under GST; Provide Evidence to Authorities A discussion on a forum addresses a query about the issuance of DRC-01 notices for ineligible Input Tax Credit (ITC) under GST. The original poster, who did not claim ITC for motor vehicles, received a notice despite not showing it as ineligible in GSTR-3B or GSTR-9. Respondents advise checking GSTR-3B for auto-populated entries and ensuring ineligible ITC is reversed, not deleted. They suggest providing documentary evidence to the tax authorities to prove no revenue loss occurred. Some respondents criticize the department's actions as harassment due to a lack of understanding of GST laws.