Reclaim of ITC earliear reversed under Rule 42 of GCST Act

[Firm 007]

Dear Members,

I have a query related to Rule 42 of CGST Act, 2017

I transfer some amount of credit to permanent reversal under column 4B (1) of GSTR 3B due to the fact that input will used for exempt supply now the fact has changed and those supply will be considered as taxable. Now i wanted to reclaim the reversed ITC. Am i eligible to reclaim it?

If yes, What document i need to be have with me?

AI Summary

Firm Can Reclaim Input Tax Credit Reversed Under Rule 42 After Supply Change, Within Section 16(4) Time Limit. A firm inquired about reclaiming Input Tax Credit (ITC) previously reversed under Rule 42 of the CGST Act, 2017, due to a change in the nature of supply from exempt to taxable. The response confirmed that the firm could reclaim the ITC, provided it is within the time limit specified in Section 16(4). It was advised to inform the department of the change and explain that the reversal was a disclosure error to avoid disputes.