Claim of ITC under wrong head - how to correct

[Rajat Gupta]

A taxpayer has claimed ITC under CGST & SGST instead of IGST during FY 24-25. The law allows correction for this in the returns up to 30th Nov 2025. However, he has opted for quarterly filing of returns, which cannot be changed on the portal now.

What is the correct recourse to rectify the mistake?

[Sadanand Bulbule]

In terms of Section 39[9] of the CGST Act, rectification is permissible in the next quarterly GSTR-3B by reversing wrong ITC and availing correct ITC, before 30th November 2025.

[Rajat Gupta]

Hello Sir, thanks for the reply. The issue is that the Quarterly return will be filed only in January 2026. So it cannot be rectified in GSTR-3B before 30th November 2025

[Sadanand Bulbule]

Dear Sir

Agreed. 

So, before 30 Nov 2025, you should inform your GST officer in writing about the error and your plan to correct it in the next return.

If you’ve already used the wrong ITC, reverse it through DRC-03 before that date.

[PAWAN KUMAR]

Dear Sir,

as per the provisions of GST, any wrong ITC taken in wrong head to be reversed in subsequent GSTR-3B, irrespective of taxpayer is monthly or quarterly. Immediate on detection, such correction should be done and further ITC to take in correct head. Please note in case wrong head ITC has bee fully utilized, then interest is payable. If any balance lying in any of the heads like IGST, CGST and SGCT, then no interest is payable as per my view.

[Shilpi Jain]

Is there a possibility to consider this as a wrong ITC pertaining to any invoice related to FY 25-26?

[Rajat Gupta]

wouldnt be possible. This mistake occurred in January 25 and relates to one specific invoice. will adjust it in the ITC already claimed in 25-26 till now

 

[KASTURI SETHI]

Practical approach

Jurisdictional GST Range Officer can help you. In one of my clients case, the Common Portal Officer re-opened freezed GSTR 3B return in order to rectify mistake but the issue was different.

You must request to your Jurisdictional Range Officer in writing before the due date for correction.

 

[Padmanathan KV]

Please see whether ratio in following judgment of Hon’ble Kerala High Court will help:

Rejimon Padickapparambil Alex Versus Union of India, State of Kerala, Goods And Services Tax Network, New Delhi, Commissioner, Office of the Commissioner, State Goods And Service Thiruvananthapuram, State Tax Officer Ernakulam. - 2024 (12) TMI 399 - KERALA HIGH COURT

 

[Pulkit Jain]

If ITC has been claimed under the wrong head (CGST/SGST instead of IGST), the GST law allows the correction only through the subsequent GSTR-3B, not through the portal’s amendment utility.

Since the taxpayer has opted for quarterly filing under QRMP, the rectification can be done in the next available GSTR-3B within the same financial year.

How the correction is made:

1. Reverse the wrongly claimed ITC (CGST + SGST) in the next GSTR-3B under “ITC Reversal – Others”.

2. Re-avail the correct ITC under the IGST head in the same return, provided the invoice is eligible and the time limit of Section 16(4) has not lapsed.

3. Ensure your working papers clearly record the error and the correction, in case of later verification.

Since the law does not allow cross-utilization or reclassification directly on the portal, this is the only practical and accepted method of rectification.

If the taxpayer wants to avoid compliance mistakes going forward, it’s advisable to have the ITC classification reviewed periodically by a professional familiar with GST reconciliations and return cycles.

AI Summary

GST QRMP ITC correction under Section 39(9) when next GSTR-3B due after 30 November 2025 A taxpayer under GST's QRMP scheme wrongly claimed ITC under CGST/SGST instead of IGST for FY 2024-25. Rectification under Section 39(9) is normally done in the next GSTR-3B by reversing the wrong ITC and availing the correct IGST credit before 30 November 2025. Because the next quarterly GSTR-3B falls after that date, suggested courses include: informing the jurisdictional GST officer in writing before 30 November 2025, seeking re-opening of the relevant GSTR-3B on the portal, and, if the wrong ITC has been utilized, reversing it via DRC-03 with applicable interest. Proper documentation and reliance on supportive case law may assist in resolving the issue.