ITC reversed in auto populated ITC in GSTR 3B on credit notes with ITC availability as NO, Goods and Services Tax - GST

[Vaishnavi Bubesh]

Dear Experts,

We are having one query regarding ITC auto reduced in auto-populated GSTR-2B amount in GSTR-3B in respect of the credit notes with ITC availability as NO in GSTR 2B due to the reason "POS lies outside the recipient state".

The question is why department is seeking the reversal/reducing the ITC on credit notes even when ITC was not available in respect of original invoices having ITC eligibility as NO due to same reason.

It is resulting in double reduction of ITC i.e., on original invoice ITC is unavailable in GSTR-2B due to POS lying in different state as recipient state as well as ITC is reduced on account of credit note issued against the original invoice.

Thanks in advance

Posts / Replies

[Shilpi Jain]

This is a flaw in the portal. You can proceed to remove the effect of the credit note.

Ensure you make an intimation for this to the dpeartment and keep it in your records so that tomorrow if the department questions the difference in ITC this intimation can be shown.