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

Correction of Input Tax Credit classification: reverse wrong head and reavail correct IGST in subsequent GSTR 3B return.
Correction of incorrectly classified Input Tax Credit claimed under CGST/SGST instead of IGST must be made through the subsequent GSTR 3B by reversing the wrongly claimed heads and re availing the correct IGST, subject to the statutory time limit. Taxpayers should notify their jurisdictional officer in writing before the filing deadline, reverse any utilised credit (including by DRC 03 if already used), report the reversal as ITC Reversal - Others, and keep working papers; interest may be payable if the wrong ITC was fully utilised.