In this Article we will discuss how to reverse ITC in Annual Return for the financial year 2017-18 and also for FY 2018-19.

Taxpayers has not reversed ITC on many occasions like

  1. Excess claim of ITC,
  2. Reversal of common ITC in Rule 42/43,
  3. Reversal of ITC due to non-payment within 180 days etc.
  4. Reversal of ITC taken in TRAN-1/2 inappropriately and many others

In numerous cases, ITC has not been reversed by taxpayers through GSTR-3B or DRC-03 before 31-03-2019 in case of FY 2017-18 and before 20-10-2019 in case of FY 2018-19.

Now taxpayer wants to reverse this ITC in Annual Return to make good his wrong ITC claim. Question arise how to reverse the ITC in Annual Return ? Whether it should be shown in Table 7 of GSTR-9 which deals with reversal of ITC or Table 13 of GSTR-9 ?

GOODS AND SERVICE TAX GST

It is pertinent to note that Table 7 can be used for showing reversal of ITC which has been reversed within FY 2017-18 itself through GSTR-3B or DRC-03.  Now what to do ?  Further to it mare showing the ITC reversal in Table 7 would not be suffice as amount of ITC should be debited from Input Credit Ledger maintained at GST portal or should be paid through cash ledger as in the case of output tax liability. When taxpayer show the amount of reversal in Table 7 without actually reversing the same, it would be considered as wrong declaration in GSTR-9 (Annual Return). Therefore care must be taken before showing any such reversal in GSTR-9. One can follow below mentioned steps for proper declaration of ITC reversal in his annual return.

i) Taxpayer must prepare a working preferably in tabular format for reversal of ITC containing therein all details apparently clear. This detail should separately show reversal of ITC with respect to IGST, CGST and SGST/UTGST.

ii) Now taxpayer should prepare DRC-03 online by logging in to GST portal and pay the liability of ITC reversal with interest upto date @ 24% per annum. The nature of payment in DRC-03 should be selected as “Voluntarily – 73(5)”. Do not forget to mention clearly in DRC-03 that liability has been paid for ITC reversal for a particular financial year. The details made in tabular sheet should be attached with DRC-03. The DRC-03 should be filed with digital signature or EVC.

iii) Now amount of reversal of ITC through DRC-03 should be reflected at Table 13 of GSTR-9 (Annual Return).

In this way the ITC for FY 2017-18 can be reversed in Annual Return. Hope this article will help the taxpayers in filing their annual return in perspective of ITC reversal.

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95 Comments

  1. Kairav Singh says:

    Sir,
    In FY 19-20 March 2020, I have wrongly claimed ITC CGST&SGST of ₹ 15,000.
    So what to do in GSTR-9.
    Should I reverse through DRC-03 or through 3b of FEB-21.
    And how to show it in GSTR9

  2. Rashmi says:

    If supplier pay tax of feb 20 invoice in 26feb 21 in gstr 9then can i will take this invoices itc in gstr9.i have already taken in feb20gstr3b.

  3. Shahrukh Malik says:

    Dear Sir
    I have taken Sale invoices of 2019-20 in August-2020 GST return. Where to show the amount in GSTR9 of 2019-20? Can I show the amount in Table 10 of GSTR9?

  4. Shahrukh Malik says:

    Dear Sir
    I have reversed ITC of 2019-20 in August-20.
    Now, Where to show the reversal amount in GSTR9? Can I show the amount in Table 8C as negative value?

  5. ANUJ KUMAR GUPTA says:

    Dear Sir

    I need to ask a Query. I am filing GSTR-9 of a Power Transmission Company. The company has been acquired from REC. The erstwhile company has availed ITC of 2.5 Crore on head office expenses distribution to subsidiary.
    Now this ITC of Rs. 2.5 Cr is open in my ITC Ledger on POrtal. However at the time of Audit 31.03.2020 we have written off the ITC Credit in books because transmission business is exempt.

    Now how to show the transaction of writing off ITC in GSTR-9 and how to write off unutilized Credit from ITC Ledger

  6. kapil says:

    1. i have reversed itc of 2018-19 in 2019-20 through GSTR 3b before september where this show in GSTR 9.
    2. My sellers files return after october 2020. so this itc not shown in table 8A. so these itc reverse krna hoga or 2020-21 mein again claim krna hoga. ya claim nhi kr skte or sirf pay krna hai??

  7. RAKESH CHHABRA says:

    Sir, in Dec-20, I have wrongly uploaded my sale invoice in IGST Sale instead of Local Sale and It is amended in Jan-21 GSTR1. In auto populated GSTR3B portal increased liabilities of CGST and SGST. How can i recover my IGST. There in no option to feed -ve figures in GSTR3B.

  8. KRISHNA KUMAR P says:

    Sir,
    I have revered excess ITC availed during FY 2018-19 in 2019-20 from available ITC. Now the ITC as per books and Table 6 of GSTR-9 differs. Any solution.

  9. AJAY says:

    Dear Sir,
    1, ITC Reversed due to rule 37 (180 days) in FY 2019-20 , reclaimed in fy 2021 in sept 20 return , how to show ITC reclaim in gstr 9,
    2. excess ITC Reversed under Rule 42 in FY 1920, correct ITC taken in sept 20 ,3 B , how to reflect ITC in GSTR 9

    3. ITC reversed due to rule 37 in FY 2021 relates to FY 1920 how to show reclaim in gstr 9 , reclaim in sept 2020 , 3 B

  10. sarita says:

    Dear Sir,

    input credit claimed in fy19-20, one scrutiny came and gst officials asked us to remit the whatever inputs not reflecting in GSTR2A was insisted to remit money using DRC-03. Some invoices showed a status of GSTR1 filed and GSTR3B not filed.Those inputs were also asked to remit money and now these parties has filed the GSTR3B and nw it is reflecting in GSTR9 19-20.
    what to do sir for reclaiming that input , Pls advice

      1. nitinkumsgl says:

        ITC REVERSAL DONE THROUGH DRC-03 IS NOT AUTOMATICALLY RECLAIMABLE. YOU MAY APPLY FOR REFUND FOR THOSE REVERSAL WHICH ARE NOW REFLECTING IN GSTR-2A

  11. Bobby p says:

    Itc reversal was not done in GSTR3B returns related to fy 2018-19…how can we made reversal while filing gstr9 for the financial year 2018-19..where we have to report in gstr9

  12. sarita says:

    Dear Sir,

    I have made a wrong reversal of itc under Others in GSTR3B of March2020. but the same is not reflecting in the Annual Return of Fy2019-20. If i am filing the Annual return without showing the reversal wil get reflected in the credit ledger .

    Pls advice

  13. SARITHA says:

    Dear Sir,

    I have passed a reversal in SGST in GSTR3B of march20.but when i opened the Annual Return of 2019-20 that reversal is not reflected. i need to remove it from the credit ledger , if i am filing the annual return without that reversal will it effect the credit ledger. pls advice

  14. Laxmi Khedia says:

    Sir, in 2a import of goods from overseas on bill of entry shows input in Feb 19 but I took the itc of import on May 19 after getting invoice ie in next financial year 19-20…so how I will show it in gate 9 of 2018-19.

  15. kamesh says:

    i have taken excess credit in 2018-19 by mistake can i reverse this in 2020 and pay intrest thru drc03 or i need to reverse everything only thru drc03

  16. subramanian says:

    sir,
    During the financial year 2017-2018 I had an excess input tax credit(GSTR 9) which i did not claim refund and the same was carry forwarded to next year 2018-2019.But my GSTR 9 (2018-2019) again shows in colom 6 K. What should i do ?

  17. KAPIL says:

    1. sir i take excess claim itc of 2017-18 and reversed in 2018-19 3b. in less amount in 4a coloumn of 3b instead of reverse shows in table. now what i can in GSTR 9 of 2018-19
    2. i take itc in 2018-19 of vehicle insurance but reveresed in 2019-20 what treatment of GSTR 9 of 2018-19.
    3. i claim march 2018-19 reverse charge itc in april 2019-20. what treatment of GSTR 9 of 2018-19.

  18. Aseem Mahajan says:

    We claimed excess ITC in 2018-19 but revered in 2019-20. please tell us how to report in annual return of FY 2018-19. Thank you. Can we put negative figure in Table 6.

  19. R.S.Kumar says:

    Hello Sir.
    Please guide me.
    1. If I have availed ITC , but my vendor has not shown invoice in GSTR1 & 3B. will i have to reverse ITC inspite of having Valid Tax Invoice & how & where it will reflect in MY GSTR9.
    2. If i have reversed excess or ineligible ITC claimed of 2017-18 & 2018-19 in GSTR3B of February 2019, where it will reflect in GSTR9.

  20. SANJAY RUPANI says:

    Respected Sir,
    I have some queries regarding GSTR 9 filing For 2018-19.
    A. If my supplier has not shown invoice in his GSTR 1, can I claim ITC as I have valid invoice. Because due to this there is difference in my GSTR 3B n GSTR2A. Where to show this in GSTR 9.
    2. I forgot to show one purchase invoice in my 3b. It shows in 2A . Where to show that invoice in GSTR 9. can I claim ITC on that invoice,
    3. One of my supplier has shown my invoice in IGST instead of CGST & SGST. Hence 2A shows credit amount in IGST & Liability in CGST & SGST. Supplier says he will reconcile this in his GSTR9 .How to show this in My GSTR 9.
    4. If there is difference in my 2A & 3B amount. How to match & where to show in GSTR 9.
    5. If my supplier forgot to show invoice in GSTR 1 & 3B. I have already claim ITC. He is ready to refund tax amount by cash. How to reverse this ITC in GSTR 9.

  21. Dimple says:

    Dear Sir,

    I have claimed excess ITC in GSTR – 3B for the financial year 2018-19 which was not reversed. The reason for claiming the excess GST was:
    1) The supplier had provided a GST invoice stating GST as INR 200 but as per GSTR 2A, the GST was only INR 50
    2) Error on my part as I claimed the same amount twice

    Should I pay GST through DRC-03 now for both 1 and 2? If yes, how should such payment be reflected in GSTR-9?

  22. GAURANG says:

    I HAVE CLAIMED EXCESS ITC IN 21017-18, THAT WAS DULY REVERSED IN 18-19 AND THE REVERSAL AMOUNT WAS MENTIONED IN TABLE 12 OF GSTR-9 ANNUAL RETURN 17-18. HOW TO SHOW TREATMENT IN 18-19 ANNUAL RETURN? PLEASE CLARIFY

  23. VENKAT says:

    Sir,
    I mistakenly[Typing Error] claim ITC in GSTR-3B of Rs.16,46,137 in the Month of April 2019 instead of 16,461.37. I rectify the same in the next month May 2019 return by reversal of ITC as others after deducting the correct ITC of April and May 2019.
    now how will it impact in annual return. and What i need to do for the same?

  24. VENKAT says:

    Sir,
    I mistakenly claimed ITC in GSTR-3B as 16,46,137 instead of 16,461.37 in the month of April 2019. In May 2019, I immediately reversed the same in GSTR-3B after deducting the Correct ITC for the Month of April and May in other Reversals.
    what impacts will it create in GSTR 9 for the year 2019-20?

  25. Maulik says:

    Dear sir
    I did a reversal of ITC for 2018-19 in July 2019 but system deducted the amount of SGST and CGST from IGST. To rectify this, I added the amount deducted in IGST in 3B of September. Now what corrective action to be taken?

  26. MUTHU U N says:

    IF I CLAIMED EXCESS ITC IN SEPTEMBER 2018 AND THE SAME WAS NOT REVERSED IN 18-19,19-20. AT THE TIME OF FILING GSTR 9 & 9C OF 18-19 IN OCTOBER 2020 ONLY, THE EXCESS CLAIMED ITC COMES IN TO NOTICE.
    NOW WHETHER THAT ITC CAN BE

    REVERSED IN SEPTEMBER 2020 GSTR 3B AND PAY INTEREST ALONE THROUGH DRC 03
    OR
    ENTIRE EXCESS CLAIMED ITC WITH INTEREST TO BE PAID THROUGH DRC03

    KINDLY PROVIDE A SUGGESTION.

  27. Vatsal Agarwal says:

    Dear Sir,
    In F.Y 2019-20 our firm has claimed the following ITC in GSTR 3B:
    CGST SGST
    142000 142000
    However, while compiling our books of accounts of F.Y 2019-20 we came to know that the party on whose bill we claimed CGST and SGST of Rs 142000 each has only filed GSTR 1 and Not Filed its GSTR 3B. The firm has closed its registration.
    Now, we have to reverse the ITC that we already claimed in July 2019 as we can make changes for F.Y 2019-20 till September 2020 only.
    Can you kindly guide as to how shall we reverse the ITC of 2019-20 in GSTR 3B of September 2020? As well as its treatment in books of accounts?

  28. Harsha says:

    Hello Sir,
    I have claimed excess ITC in 2018-19 & I have not reversed it till date. Please, guide me in which column should I show the reversal of ITC? And, should I make the payment through DRC03? Also, do we have to add the same in Table 4?

  29. vvs sravan says:

    Dear sir,

    I have claimed excess input in gstr – 3b for the financial year 2018-19 which was not reversed in the financial year 2018-19 & 2019-20. I have some queries please help me on these.

    Example : Input as per books :

    As per books As per GSTr-3b
    Cgst : 900 1000
    sgst : 900 1000

    so I have claimed excess of Rs.100 in gstr-3b in the financial year 2018-19 which was not reversed in the financial year 2018-19 & subsequent years.

    Query :1

    In table no 6a of gstr-3b input will be 1000/- ( data from gstr-3b).

    while segregating the input i,e input on purchases ,services, capital goods and rcm will i need to give break up for 1000/- or 900/-. when i read the technical guidance note issued by icai they mention that difference in table 6j ideally will be zero.

    Please clarify on this also how to rectify this excess input?

  30. saurabh says:

    sir
    how to show in gst r9 if i excess reverse the itc and excess claim of input.
    CGST SGST IGST TOTAL
    ITC as per book 303,859.10 303,859.10 936,990.33 1,544,708.53
    I/P Input from other sources 4,804.99 4,804.99 3,226.02 12,836.00
    Less ITC Return (42,515.23) (42,515.23) (122,579.10) (207,609.56)
    TOTAL 266,148.86 266,148.86 817,637.25 1,349,934.97

    CGST SGST IGST TOTAL
    ITC as per GST 305,154.54 305,154.54 938,685.79 1,548,994.87
    I/P Input from other sources 4,804.99 4,804.99 3,226.02 12,836.00
    Less ITC Return (49,532.47) (45,541.47) (122,579.11) (217,653.05)
    TOTAL 260,427.06 264,418.06 819,332.70 1,344,177.82

  31. Shalini Gupta says:

    Hi Sir,
    I have claimed Excess ITC in FY 2018-19, and forgot to reverse it while filing returns for Fy 2019-20 now the Firm has cancelled its registration. I have only claimed the ITC and not utilized it against payment of GST. Please guide me how can I reverse this ITC in GSTR9 of 2018-19. Do I need to pay DRC-03?

  32. Zubin Mehta says:

    Sir, i claimed input but counterparty not filed gstr1 till date relating to year fy 17-18,18-19 & 9-20, now his gst registration got cancelled, now what to do for input availed by me and if as a recipient of goods i need to reverse it than how to reverse such input and that whether through gstr 3b or drc 03 , as i already have filed gstr9 for 17-18 ?? Please help me with this

  33. Kamal says:

    Sir
    I have claimed excess ITC in 17-18 which I have reversed in GSTR-3B of 18-19. I have shown such reversal in GSTR-9 of 17-18 in Table 12.
    Now while preparing GSTR-9 of 18-19, where I shall show such reversal which pertain to 17-18 but reversed in 18-19 ?

  34. kanish singhal says:

    respected sir
    i have claimed excess itc in f.y.2018-19 and i reversed such excess itc in sep 2019 3b return but such return was filed by us after due date
    now what we do in this scenerio

  35. Kavita Shah says:

    Table 12 specifically reads transactions declared between April to September 2019. But in this case we haven’t reversed it till October right? Say if I find out today that I have claimed excess ITC for the year 2018-19, what is the procedure?

  36. Amit Kaushik says:

    You are saying to show ITC reversal in Table 13 of GSTR 9 but table 13 is for ITC availed during the previous financial Year. Should it not be Table 12 (Reversal of ITC availed during previous financial year. Please clarify

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