RULE 86B - UTILISED 100% ITC

[Fahiyaz Ahmmed]

If a person not followed rule 86B and utilized 100% ITC instead of 99%, after realising person want to deposit 1% Tax cash trough DRC-03, My question is what section should be selected during deposit 1% Tax through DRC-03.

AI Summary

Correcting GST Compliance Error: Use DRC-03 for 1% Deposit, Mark as Voluntary Under Section 73, Pay Interest. A discussion on a forum addresses a query about correcting an error in Goods and Services Tax (GST) compliance under Rule 86B. The issue involves a person who utilized 100% Input Tax Credit (ITC) instead of the allowed 99% and seeks to deposit the 1% tax via DRC-03. Respondents advise marking the remittance as voluntary under Section 73 of the CGST Act, 2017, and including a note about the error. It is recommended to pay interest for the shortfall period and to reclaim the 1% credit in future GSTR-3B returns while notifying the department.