TaxTMI 
TaxTMI 
Can i reverse excess input tax credit of f.y 2017-18 on today through DRC3 by using electronic credit ledger balance.?
Reversal of excess input
05 Aug 2019 
17 Replies 
12509 Views Asked by
Reversal of excess input tax credit: timing and ledger choice affect payment route and annual return reporting.
Reversal of excess input tax credit via DRC-03 implicates whether payment may be made from the electronic credit ledger or must be paid from the electronic cash ledger; departmental notification language restricts annual-return DRC-03 payments to the electronic cash ledger, and interest on voluntary reversals is payable in cash. The timing of reversal relative to filing the annual return affects how the reversal is reported and may expose taxpayers to assessment arguments about annual-return liability. Portal functioning and notification interpretation dictate practical treatment. (AI Summary)
Reversal of excess input tax credit via DRC-03 implicates whether payment may be made from the electronic credit ledger or must be paid from the electronic cash ledger; departmental notification language restricts annual-return DRC-03 payments to the electronic cash ledger, and interest on voluntary reversals is payable in cash. The timing of reversal relative to filing the annual return affects how the reversal is reported and may expose taxpayers to assessment arguments about annual-return liability. Portal functioning and notification interpretation dictate practical treatment. (AI Summary)