TaxTMI 
TaxTMI 
ITC reversal
X X X X Extracts X X X X
X X X X Extracts X X X X
....TC reversal<br> Query (Issue) Started By: - SUNIL NATH Dated:- 16-7-2023 Last Reply Date:- 20-7-2023 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Due to auto reflect in ITC setoff in GST portal, we are mistaken to utilize cash and keep balance in credit ledger. Moreover since GSTR-3B is cannot be amended and in case ITC reversal, can interest be levied, if there is sufficient balance in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... cash ledger ? Reply By Amit Agrawal: The Reply: I am not sure if query & factual position is drafted properly, as same sounds contradictory. For example, at one place, it states 'utilising cash and keeping balance in credit ledger' whereas question raised is due to maintaining sufficient balance in cash ledger. Kindly clarify. Reply By KASTURI SETHI: The Reply: Sh.Sunil Nath Ji, By....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... mistake, you utilised Electronic Cash Ledger instead of Electronic Credit Ledger whereas there was sufficient balance in both ledgers. Is it right ? If not, pl.re-draft your query. Reply By SUNIL NATH: The Reply: There is no balance in credit ledger, but balance in cash ledger. Since, we wrongly utilize credit in stead of cash Reply By Amit Agrawal: The Reply: Is this case where 'ITC wron....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gly availed & utilised' while simultaneously having sufficient balance (i.e. exceeding the amount of ITC so wrongly availed & utilised) constantly in cash-ledger? Reply By SUNIL NATH: The Reply: yes sir Reply By GUNASEKARAN K: The Reply: It seems like you're availed ineligible ITC which should be written off from your credit ledger while filling the Table 4 for Eligible ITC in GSTR 3B....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... But you haven't reversed & simultaneously you've utilized the same from your credit ledger against your outward GST Liability. If my understanding is correct; Scenario 1: You have to reverse the ITC with interest in subsequent return by reducing your other eligible ITC during the month and interest part your have to pay separately from your cash ledger. Scenario 2: If the eligible ITC....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... during subsequent month is less than the reversible ITC then your Credit Ledger will show negative value which will reflect as liability. You can pay the same from your cash ledger with interest. Scenario 3: You may file Form DRC-03 for voluntary payment of Tax with interest and pay from Cash ledger. (Since you can file the DRC 3 form immediately which help to reduce your interest part ) Reply....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... By KASTURI SETHI: The Reply: In a nutshell, it is a case of 'over-drafting' from Electronic Credit Ledger. Interest has to be paid notwithstanding having sufficient balance in Electronic Cash Ledger.<br> Discussion Forum - Knowledge Sharing ....