TaxTMI 
TaxTMI 
Claim of ITC under wrong head - how to correct
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....laim of ITC under wrong head - how to correct<br> Query (Issue) Started By: - Rajat Gupta Dated:- 1-11-2025 Last Reply Date:- 29-11-2025 Goods and Services Tax - GST<br>Got 9 Replies<br>GST<br>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, whi....
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....ch cannot be changed on the portal now. What is the correct recourse to rectify the mistake? Reply By Sadanand Bulbule: The Reply: 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. Reply By Rajat Gupta: The Reply: Hello Sir, thanks for the reply. The issue is that th....
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....e Quarterly return will be filed only in January 2026. So it cannot be rectified in GSTR-3B before 30th November 2025 Reply By Sadanand Bulbule: The Reply: 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. ....
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.... Reply By PAWAN KUMAR: The Reply: 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 ....
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....in any of the heads like IGST, CGST and SGCT, then no interest is payable as per my view. Reply By Shilpi Jain: The Reply: Is there a possibility to consider this as a wrong ITC pertaining to any invoice related to FY 25-26? Reply By Rajat Gupta: The Reply: wouldnt be possible. This mistake occurred in January 25 and relates to one specific invoice. will adjust it in the ITC already claimed in....
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.... 25-26 till now Reply By KASTURI SETHI: The Reply: 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. Reply By Padmanathan K....
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....V: The Reply: 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 Reply By P....
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....ulkit Jain: The Reply: 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: *....
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.... Reverse the wrongly claimed ITC (CGST + SGST) in the next GSTR-3B under "ITC Reversal - Others". * 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. * Ensure your working papers clearly record the error and the correction, in case of later verification. Since the law does not allow cross....
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....-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.<br> Discussion Forum - Knowledge Sharing ....