Wrongly Reverse ITC

[Uttam Giri]

In GSTR 3B Wrongly Reverse ITC in Table 4(b)(1) in place of 4(b)(2). Now GST department sens a notice. So what is implications for wrongly filling GSTR 3B?

AI Summary

User Reversed ITC in Wrong GSTR 3B Section; Experts Say Interest May Not Apply, Refund Possible A user mistakenly reversed Input Tax Credit (ITC) in the wrong section of their GSTR 3B form, prompting a notice from the GST department. Experts advised that if the department demands reversal due to ineligible ITC, it must be reversed, but interest may not be required as the ITC is with the department. Refunds for incorrect entries can be sought, subject to conditions. The error, labeled as human, may not necessarily incur penalties if the amount is already paid. The user also queried about potential penalties for reclaiming ITC after permanent reversal, which experts suggested may not apply.