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.

[Raam Srinivasan Swaminathan Kalpathi]

Please mention remittance as voluntary and under Section 73 of CGST Act, 2017.  In the reasons window a note may be added to the effect that RTP had erroneously utilised 100% ITC instead of 99% in violation of Rule 86B and that the same is now being sought to be corrected by way of remittance of 1% tax through the cash ledger with interest u/s. 50 for the shortfall period.  You may also mention the month of GSTR-3B Returns in which re-credit (1% excess utilised from credit ledger) is being availed.  Thanks 

[PAWAN KUMAR]

Voluntary payment

please do not forget to mention the remark

[Shilpi Jain]

Do not forget to take back the 1% credit that you have paid extra. Take this in your GSTR-3B and make an intimation to the department.

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.