9911796707
TMI BlogInput tax credit claimed on the basis input credit wrongly enteredX X X X Extracts X X X X X X X X Extracts X X X X ..... Input tax credit claimed on the basis input credit wrongly entered X X X X Extracts X X X X X X X X Extracts X X X X ..... s occured on two other occasions as well. The GST due for each month has been paid in cash.Since such accumulated input credit is available in the credit ledger, the GST liability had to be squared off first against such credit thereby the credit in the cash ledger remained unutilised. However, As at the end of Sep-19 return there is no liabilty for GST, Upto the end of Sep-19 return, the credits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in various ledgers are as follows- Balance IN CASH LEDGER:is Credit 245596 -Balance in CREDIT LEDGER is Credit 188699 -AGGREGATE of wrong input claim is as at the end of Sep 19 return is 434295 - NOW in the GST 3B return for October-19, I am proposing to reverse the excess input of 434295 which will make the balance in the CREDIT ledger Dr 245596 and which will in turn offset the credit of 244596 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the cash ledger.- Kindly advise whether the step or procedure adopted to rectify the aforesaid errors is correct - If not, can you kindly advise the alternate procedure Thanking you, Ca M S ramachandran Reply By SIVARAMA KUMAR: The Reply: Since your GSTR 3B liability gets offsetted firstly from the ITC and then in cash, it would amount to Utilisation of wrong credit, though you have a surpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us cash balance in your cash ledger (Department will view like that) Hence it would be appropriate to pay the amount in cash ₹ 4,34,295/- in the month of October 19 and reverse the same under ineligible ITC , this would help you to minimise the litigations. when availment itself is wrong, reversal cannot be justified. X X X X Extracts X X X X X X X X Extracts X X X X
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