Regarding ITC show in Electronic Credit Reversal and Re-claimed Statement.

[JIGNESH SITAPARA]

I had reversed some ITC in GSTR-3B table 4(B)(2) in 'others'. Now ITC show in Electronic Credit Reversal and Re-claimed Statement. Now, what to do in this case ?I had reversed some ITC in GSTR-3B table 4(B)(2) in 'others'. Now ITC show in Electronic Credit Reversal and Re-claimed Statement. Now, what to do in this case ?

[Sadanand Bulbule]

Refer the procedure laid down in 37A of the CGST Rules as regards to reversal of input tax credit in the case of non-payment of tax by the supplier and re-availment thereof.

[JIGNESH SITAPARA]

Sir,

This ITC is construction related. Now what to do ?

[Sadanand Bulbule]

You need to first determine what type of construction the ITC relates to. GST law has strict conditions on ITC related to construction under Section 17(5)(c) & (d) of the CGST Act.

[Shilpi Jain]

If its not an eligible credit nothing to do except that you need to reverse it under table 4B1.

If eligible take credit in 4A5 and show it in 4D1 of GSTR-3B

AI Summary

Guidance on Reversing and Reclaiming Input Tax Credit Under Section 37A and Section 17(5) of CGST Act A taxpayer reversed input tax credit (ITC) under GSTR-3B but found it reflected in the Electronic Credit Reversal and Re-claimed Statement. Guidance referenced Section 37A of the CGST Rules, which governs ITC reversal and re-availment when the supplier fails to pay tax. Since the ITC pertains to construction, further analysis is required under Section 17(5)(c) and (d) of the CGST Act, which restricts ITC eligibility for construction-related activities. If the ITC is ineligible, it must be reversed under table 4B1 of GSTR-3B; if eligible, it should be claimed under table 4A5 and shown in 4D1. The discussion emphasizes compliance with specific GST provisions for ITC reversal and re-claiming, particularly in construction-related cases.