TaxTMI 
TaxTMI 
Reclaim of ITC (through TRAN-1) after reversal
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....eclaim of ITC (through TRAN-1) after reversal <br> Query (Issue) Started By: - Raam Srinivasan Swaminathan Kalpathi Dated:- 28-7-2026 Goods and Services Tax - GST <br> Got 3 Replies <br> GST<br> <br> One of the client had on account of a technical glitch in the portal while filing TRAN-1 reversed the eligible ITC in the books of account in 2018. Subsequently, when the GST department provided one m....
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....ore chance to avail the lapsed ITC the client had successfully filed the same in 2022 through TRAN-1 and an acceptance letter was also received from the department. The reversed ITC was reclaimed in the books of account by way of credit to the statement of profit and loss account. Now, department has issued notice claiming GST on this ITC reclaim. One point is this amount does not amount to supply....
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.... and outside the purview of the GST department. Is there any other legal issue which I am overlooking? Experts please advise. Thanks --Reply By: Shilpi Jain The Reply: Just because there is any credit in the P&L or there in any inflow of money, does not give authority for the Govt. to tax it. GST can be levied only if there is any supply as you rightly mentioned. so no GST liability on this cr....
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....edit availment. Prove to dept that this is only a ITC entry and any demand should get dropped --Reply By: KASTURI SETHI The Reply: Dear Sir, " The department has issued notice claiming GST on this ITC reclaim". Please elaborate the above. Thanks. --Reply By: Raam Srinivasan Swaminathan Kalpathi The Reply: Profuse apologies for the typo. "The department has accorded approval for the GST avail....
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....ed in TRAN-1". Thanks <br>***<br> Discussion Forum - Knowledge Sharing....