TaxTMI 
TaxTMI 
Claim of GST ITC - Against own Credit Note
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....laim of GST ITC - Against own Credit Note<br> Query (Issue) Started By: - Ashish Jain Dated:- 19-9-2023 Last Reply Date:- 6-3-2024 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>A company dealing in apparel has supplied goods to modern trade like big bazaar, reliance retail, metro etc in FY 2018-19. Such unsold products after sales are returned by the customer back to the company. In the....
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.... above case, at the time of return of goods back to the company, credit note was issued against multiple tax invoice. Since in the FY 2018-19, there was no provision in GSTR1 to report credit note without reference of original invoice, the company claimed ITC on such sales returns. Now the department is seeking reversal of ITC claimed as ineligible. What are the remedies to the same? Reply By Pad....
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....manathan Kollengode: The Reply: Prima facie, the view of the department is correct as Credit note is not a valid document for claiming ITC under Section 16(2)(a). However, you will have argue that the whole process is revenue neutral (as instead of reducing OPT u have added to ITC). Procedural irregularties should not come in between, when in substance there is no loss of revenue to Dept. Howev....
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....er, the matter will most likely be settled in appellate forums only. Reply By Shilpi Jain: The Reply: Agree. The department does not pay any consideration to the procedural irregularities which do not have any effect on the revenue to the exchequer. It is merely a wrong disclosure of the amount, something which should have been reduced from output liability has been mistakenly taken as credit. ....
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.... These kind of instances are many since at such time the GSTR-3B did not accept negative figures so to reduce the liability many had in such instances shown it as ITC. Reply By vijay kumar: The Reply: Ideally, you should have claimed refund of the excess tax paid, subject of course to the conditions involved Reply By KALLESHAMURTHY MURTHY: The Reply: Issue Id: - 118759 You have to explain the....
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.... concern AA with reference to the books of accounts stock receipt entries, and P&L Account for having taken into credit such returned apparel. Show even the delivery challans, payment details and other relevant documents. You need not reverse ITC or go for an appeal unnecessarily. Reply By Arti Negi: The Reply: Does any one have any reference or case law to quote in SCN . In respect of claim of ....
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....excess ITC against it's own credit note issued. Reply By Naveen G: The Reply: Is there any case law on this ?<br> Discussion Forum - Knowledge Sharing ....