Presentation of Input Tax Credit in Annual Return
Case Studies on Presentation of Input Tax Credit in Annual Return
There have been lot many errors while claiming Input Tax Credit by the Taxpayers. Some of very common errors was inadvertently claiming Excess ITC, Lapse of ITC, Claim of ITC under Wrong Heading, Deposit of RCM but failure to Claim ITC of RCM, Claim of ITC in RCM but failure to pay tax, Error in Reporting of ITC under Import of Goods/Import of Services/Tax Paid under RCM and reporting under “All Other ITC”.
This Article would be an effort in Highlighting the Issues and Suggestive Treatment. However, opinion and views might differ since the suggestive treatment is on the basis of understanding of the Form. Therefore, Professional Judgement has to be exercised before using any of the suggestive actions as discussed below:
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Case Study on ITC Claimed in GSTR-3B
Situation 1: Part Credit claimed till March 2018 and Balance till September 2018
Mr A has a credit of Rs 150000 in Books of Accounts and has out of the said credit, he as claimed Rs 100000 till March 2018 and Rest Rs 50000 from the period April to March 2019.
Reporting in Table 6/Table 13
| Particulars | Amount | Treatment in Annual Return |
| ITC Available in Books of Accounts | Rs 150000 | – |
| ITC Claimed in GSTR-3B (July 2017 to March 2018) | Rs 100000 | Table 6 |
| ITC Claimed in GSTR-3B (April 2018 to March 2019) | Rs 50000 | Table 13 |
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| ITC Claimed in GSTR-3B (July 2017 to March 2018) | Rs 100000 | Table 8B |
| ITC Claimed in GSTR-3B (April 2018 to March 2019) | Rs 50000 | Table 8C |
Situation 2: Part Credit claimed till March 2018 and Part Credit Claimed till March 2019 and Balance could not be claimed
Mr A has a credit of Rs 150000 in Boks of Accounts and has out of the said credit, he as claimed Rs 100000 till March 2018 and Rest Rs 25000 from the period April to March 2019 and Rest Rs 25000 was not claimed by the Taxpayer.
Related Topic:
Claim of ITC under wrong head in GSTR 3B due to wrong filing of GSTR-1 by the supplier
Reporting in Table 6/Table 13
| Particulars | Amount | Treatment in Annual Return |
| ITC Available in Books of Accounts: | Rs 150000 | – |
| ITC Claimed in GSTR-3B (July 2017 to March 2018) | Rs 100000 | Table 6 |
| ITC Claimed in GSTR-3B (April 2018 to March 2019) | Rs 25000 | Table 13 |
| ITC Unclaimed | Rs 25000 | ITC Lapsed |
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| ITC Claimed in GSTR-3B (July 2017 to March 2018) | Rs 100000 | Table 8B |
| ITC Claimed in GSTR-3B (April 2018 to March 2019) | Rs 25000 | Table 8C |
| ITC Unclaimed | Rs 25000 | Table 8E |
Case Study on ITC Reversal in GSTR-3B
Situation 3: Part Reversal Made till March 2018 and Part Reversal made till September 2018
Mr A had reversed ITC of Rs 50000 in Books of Accounts on account of Rule 42 and Rule 43/180 Days Reversal. However, he could only reverse ITC of Rs 25000 till March 2018 and balance ITC of Rs 25000 was reversed from the period April 2018 to September 2018.
Reporting in Table 7/Table 12
| Particulars | Amount | Treatment in Annual Return |
| Total ITC Reversed in Books of Accounts | Rs 50000 | – |
| ITC Reversed in GSTR-3B (July 2017 to March 2018) | Rs 25000 | Table 7 |
| ITC Reversed in GSTR-3B (April 2018 to Sep 2018) | Rs 25000 | Table 12 |
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| ITC Reversed in GSTR-3B (July 2017 to March 2018) | Rs 25000 | Not to be reflected in Table 8 |
| ITC Reversed in GSTR-3B (April 2018 to Sep 2018) | Rs 25000 | Not to be reflected in Table 8 |
Situation 4: Part Reversal Made till March 2018 and Part Reversal made till September 2018 and Balance Reversal could not be made till Filing of Annual Return
Mr A had reversed ITC of Rs 100000 in Books of Accounts on account of Rule 42 and Rule 43. However, he could only reverse ITC of Rs 25000 till March 2018 and Rs 25000 was reversed from the period April 2018 to September 2018. He could not reverse balance ITC of Rs 50000 and wants to reverse in Annual Return.
| Particulars | Amount | Treatment in Annual Return |
| Total ITC Reversed in Books of Accounts | Rs 100000 | – |
| ITC Reversed in GSTR-3B (July 2017 to March 2018) | Rs 25000 | Table 7 |
| ITC Reversed in GSTR-3B (April 2018 to Sep 2018) | Rs 25000 | Table 12 |
| Balance ITC to be Reversed | Rs 50000 | Table 7 and Pay by DRC-03 |
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| ITC Reversed in GSTR-3B (July 2017 to March 2018) | Rs 25000 | Not to be reflected in Table 8 |
| ITC Reversed in GSTR-3B (April 2018 to Sep 2018) | Rs 25000 | Not to be reflected in Table 8 |
| Balance ITC to be Reversed | Rs 50000 | Not to be reflected in Table 8 |
Case Study on Incorrect Reporting of IGST Paid on Import
Situation 5: Incorrect Reporting of IGST Paid on import of Goods under “All other ITC”
Mr A had imported goods and paid IGST of Rs 100000.00. He had other ITC of Rs 50000.00. While filing GSTR-3B, he inadvertently reflected entire ITC in “All other ITC” in Column 4(A)(5) of GSTR-3B. Can he show such amount correctly in GSTR-9.
Reporting in Table 6/Table 7
| Particulars | Amount | Treatment in Annual Return |
| Total IGST Paid on Import | Rs 100000 | Table 6E |
| All Other ITC | Rs 50000 | Table 6B |
| Aggregate ITC | Rs 150000 |
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| Total IGST Paid on Import | Rs 100000 | Table 8H |
| All Other ITC | Rs 50000 | Table 8B |
Case Study on Excess ITC claimed inadvertently in GSTR-3B
Situation 6: Higher Credit claimed in GSTR-3B and Part Wrong availment adjusted till March 2018, Part Adjusted till September 2018 and Part could not be adjusted till filing of Annual Return (Reversal has been made through Table 4(B)(2) of GSTR-3B)
Mr A had Input Tax Credit Books of Accounts of Rs 150000.00 He Inadvertently claimed credit of Rs 1500000.00. Out of which Rs 1000000.00 was reversed till March 2018. Rs 200000.00 was reversed till September 2018 (Reversal has been made through Table 4(B)(2) of GSTR-3B.). and Balance Rs 150000.00 could not be reversed.
| Particulars | Amount | Treatment in Annual Return |
| ITC claimed in GSTR-3B | Rs 1500000 | Table 6B |
| ITC Reversed during July 17 to March 2018 | Rs 1000000 | Table 7H |
| ITC Reversed from April to Sep 18 | Rs 200000 | Table 13 |
| Balance ITC to be reversed | Rs 150000 | Table 7H |
It would be worthwhile to mention that Figures in Table 6B would auto populated in Table 8B. This would result in incorrect preparation of Table 8. But then the form offers not solution in this respect as any other way of filing the form would result in incorrect preparation of Table 9. The handbook released by ICAI also provides as follows:
Related Topic:
Can I claim the ITC of RCM in next year?
Sl. No. 8B: ITC as per sum total of 6(B) and 6(H)
Notes to consider If ITC is wrongly reported in GSTR-3B, the mistake shall get reflected in this clause
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| ITC claimed in GSTR-3B | Rs 1500000 | Table 8B |
| ITC Reversed during July 17 to March 2018 | Rs 1000000 | Not to be reflected in Table 8 |
| ITC Reversed from April to Sep 18 | Rs 200000 | Not to be reflected in Table 8 |
| Balance ITC to be reversed | Rs 150000 | Not to be reflected in Table 8 |
Alternate Approach: There might be an alternative view of showing the ITC in Table 6B as Rs 150000.00 and consequently in Table 8B. (Though might not appear proper on an overall view of the form as all reversal made have to be reported in Table 7). Professional Judgement would be required to be exercised in the matter.
Situation 7: Higher Credit claimed in GSTR-3B and Part Wrong availment adjusted till March 2018, Part Adjusted till September 2018 and Part could not be adjusted till filing of Annual Return (Reversal has been made through netting off subsequent credits in Table 4(A)(5) of GSTR-3B)
Mr A had Input Tax Credit Books of Accounts of Rs 150000.00. He Inadvertently claimed credit of Rs 1500000.00. Out of which Rs 1000000.00 was reversed till March 2018. Rs 200000.00 was reversed till September 2018 and Balance Rs 150000.00 could not be reversed. Reversal has been made after reducing subsequent credits in Table 4(A)(5) i.e. “All Other ITC” then reporting in GSTR-9 can be made as follows:
| Particulars | Amount | Treatment in Annual Return |
| ITC claimed in GSTR-3B | Rs 500000 | Table 6B |
| ITC Reversed from April to Sep 18 | Rs 200000 | Table 13 |
| Balance ITC to be reversed | Rs 150000 | Table 7H |
Reporting in Table 8
| Particulars | Amount | Treatment in Annual Return |
| ITC claimed in GSTR-3B | Rs 500000 | Table 8B |
| ITC Reversed from April to Sep 18 | Rs 200000 | Not to be reflected in Table 8 |
| Balance ITC to be reversed | Rs 150000 | Not to be reflected in Table 8 |
Situation 8: Amount shown in GSTR-3B under “All other ITC” as net of Reversal
Mr A had an input of Rs 150000.00 and had to reverse credit of Rs 10000.00 (non-payment of consideration for 180 days). He inadvertently reflected net credit of Rs 140000.00 in GSTR-3B in Column 4(A)(5). How same should be reflected in GSTR-9.
Reporting Made in GSTR-3B
| Particulars | Amount |
| ITC as per Books of Accounts | Rs 150000 |
| Reversal to be made | Rs 10000 |
| Reporting in GSTR-3B in Table 4(A)(5) | Rs 140000 |
Ideal Reporting in GSTR-3B
| Particulars | Amount |
| Reporting in GSTR-3B in Table 4(A)(5) | Rs 150000 |
| Reversal in Table 4B(2) | Rs 10000 |
Reporting in Table 6 and 7 in GST Annual Return
| Particulars | Amount | Treatment in Annual Return |
| ITC as per Books of Accounts | Rs 150000 | Table 6B |
| ITC to be Reversed | Rs 10000 | Table 7A |
Case Study on Reporting of Tax Paid under RCM and Credit Availed
Situation 9: RCM Liability Short Paid till September 2018 and balance paid with Annual Return
Mr A had a liability to pay RCM of Rs 100000.00 Out of the said liability, he paid Rs 50000 till March 2018, Rs 25000 till April to September 2018 and Rs 25000 liability was paid through Annual Return.
| Particulars | Amount | Treatment in Annual Return (Outward Liability) | Treatment in Annual Return (ITC Claim) |
| RCM Paid and availed till March 2018 | 50000 | Table 4G | Table 6C/6D |
| RCM Paid and availed from April 18 to September 2018 | 25000 | Table 10 | Table 13 |
| RCM Liability Paid in Annual Return | 25000 | Table 4G with DRC 03 | Lapsed |
Situation 10: RCM Liability Paid till March 2018 but availed till September 2018
Mr A had a liability to pay RCM of Rs 100000.00. He paid entire amount till March 2018 but claimed credit of Rs 50000 till March 2018 and rest Rs 50000 was claimed till April to September 2018.
| Particulars | Amount | Treatment in Annual Return (Outward Liability) | Treatment in Annual Return (ITC Claim) |
| RCM Paid till March 2018 | 100000 | Table 4G | NA |
| RCM availed from July 2017 to March 2018 | 50000 | NA | Table 6C/6D |
| RCM availed from April to September 2018 | 50000 | NA | Table 13 |
Situation 11: RCM Liability Paid in July 2017 but differential tax paid and credit availed in March 2018
Mr A had a liability to pay RCM of Rs 100000.00 in July 2017. He paid entire amount in July 2017 and claimed credit of Rs 100000. He came to know that he had deposited short tax of Rs 50000.00 i.e. deposited tax @ 12% instead of 18%. He deposited the additional tax and claimed credit in March 2018.
| Particulars | Amount | Treatment in Annual Return (Outward Liability) | Treatment in Annual Return (ITC Claim) |
| RCM Paid in July 2017 | 100000 | Table 4G | Table 6C/6D |
| Additional RCM on the above transaction paid in March 2018 | 50000 | Table 4K | Table 6C/6D |
Situation 12: RCM Liability Paid till March 2018 but credit reversed due to wrong availment of Credit till March 2018
Mr A had a liability to pay RCM of Rs 100000.00 in July 2017. He paid entire amount in July 2017 and claimed credit of Rs 100000. Thereafter he came to know that he had ineligible credit of Rs 50000 and reversed the same in March 2018.
| Particulars | Amount | Treatment in Annual Return (Outward Liability) | Treatment in Annual Return (ITC Claim) |
| RCM Paid in July 2017 | 100000 | Table 4G | Table 6C/6D |
| Reversal of Ineligible Credit | 50000 | NA | Table 7E with DRC-03 |
Situation 13: RCM Liability Paid till March 2018 but credit reversed due to wrong availment in September 2018
Mr A had a liability to pay RCM of Rs 100000.00 in July 2017. He paid entire amount in July 2017 and claimed credit of Rs 100000. Thereafter he came to know that he had ineligible credit of Rs 50000 and reversed the same in September 2018.
| Particulars | Amount | Treatment in Annual Return (Outward Liability) | Treatment in Annual Return (ITC Claim) |
| RCM Paid in July 2017 | 100000 | Table 4G | Table 6C/6D |
| Reversal of Ineligible Credit | 50000 | – | Table 12 |
Situation 14: RCM Liability Paid till March 2018 but credit reversed due to wrong availment of Credit in Annual Return
Mr A had a liability to pay RCM of Rs 100000.00 in July 2017. He paid entire amount in July 2017 and claimed credit of Rs 100000. Thereafter he came to know that he had ineligible credit of Rs 50000 and reversed the same in Annual Return.
| Particulars | Amount | Treatment in Annual Return (Outward Liability) | Treatment in Annual Return (ITC Claim) |
| RCM Paid in July 2017 | 100000 | Table 4G | Table 6C/6D |
| Reversal of Ineligible Credit | 50000 | – | Table 7E with DRC-03 |
Case Study on Reporting of TRAN-1 CREDIT availed and Reversed
Situation 15: TRAN-1 Credit Claimed and Part Credit Reversed till March 2018
Mr A had claimed TRAN-1 Credit of Rs 150000.00 against TRAN-1 filed on 26th October 2017. Against the said credit, Mr A reversed credit of Rs 50000.00 vide GSTR-3B for the month of March 2018.
| Particulars | Amount | Table |
| TRAN-1 Credit claimed | Rs 150000 | Table 6K |
| TRAN-1 CREDIT Reversed till March 2018 | Rs 50000 | Table 7F |
Situation 16: TRAN-1 Credit Claimed and Part Reversed till September 2018
Mr A had claimed TRAN-1 Credit of Rs 150000.00 against TRAN-1 filed on 26th October 2017. Against the said credit, Mr A reversed credit of Rs 50000.00 vide GSTR-3B for the month of September 2018.
| Particulars | Amount | Table |
| TRAN-1 Credit claimed | Rs 150000 | Table 6K |
| TRAN-1 CREDIT Reversed till September 2018 | Rs 50000 | Table 12 |
Situation 17: TRAN-1 Credit Claimed and Part Reversed in Annual Return
Mr A had claimed TRAN-1 Credit of Rs 150000.00 against TRAN-1 filed on 26th October 2017. Against the said credit, Mr A reversed credit of Rs 50000.00 in Annual Return.
| Particulars | Amount | Table |
| TRAN-1 Credit claimed | Rs 150000 | Table 6K |
| TRAN-1 CREDIT Reversed with Annual Return | Rs 50000 | Table 7F with DRC-03 |
However, it is advised that in view of the Circular No. 58/32/2018 dated 4th September 2018 as amended vide Circular No. 88/07/2019 Dated 1st February 2019, Reversal of Excess Credit through GSTR-3B/GSTR-9 is no longer available and it has to be through DRC-03 selecting Section 73/74 of CGST Act, 2017.
Related Topic:
10 Case Studies under GST
“It may be noted that all such liabilities may be discharged by the taxpayers, either voluntarily in FORM GST DRC-03 or may be recovered vide order uploaded in FORM GST DRC-07, and payment against the said order shall be made in FORM GST DRC-03. It is further clarified that the alternative method of reversing the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B would no longer be available to taxpayers. The applicable interest and penalty shall apply in respect of all such amounts, which shall also be paid in FORM GST DRC-03.”
Situation 18: TRAN-1 Credit Claimed and TRAN-1 Revised till 27th December 2017
Mr A had claimed TRAN-1 Credit of Rs 150000.00 against TRAN-1 filed on 26th October 2017. Against the said credit, Mr A filed revised TRAN-1 on 25th December 2017 availing a net credit of Rs 100000.00.
| Particulars | Amount | Table |
| TRAN-1 Credit claimed | Rs 100000 | Table 6K |
Situation 19: Manual TRAN-1 Credit Claimed in Return filed for the month of March 2018
Mr A had claimed Manual TRAN-1 Credit of Rs 100000.00 in pursuance of High Court Order in the return filed for the month of March 2018.
| Particulars | Amount | Table |
| TRAN-1 Credit claimed | Rs 100000 | Table 6K |
Situation 20: Manual TRAN-1 Credit Claimed in Return filed for the month of April 2018
Mr A had claimed Manual TRAN-1 Credit of Rs 100000.00 in pursuance of High Court Order in the return filed for the month of April 2018.
| Particulars | Amount | Table |
| TRAN-1 Credit claimed | Rs 100000 | Not Relevant as it would form part of FY 2018-19. |
Case Study on Reporting of ITC Claimed in wrong Head and Credit reversed and reclaimed
Situation 21: ITC Claimed in Wrong Head but reversed and reclaimed till March 2018
Mr A had paid Rs 100000.00 in IGST but inadvertently credit was claimed as Rs 100000 each in both CGST and SGST. He reversed the credit under CGST and SGST till March 2018 through Column 4(B)(2) of GST-3B and claimed correct credit in IGST.
| Particulars | Amount | ITC Claimed-Table | ITC Reversed Table |
| CGST and SGST Credit | 200000 | Table 6B | NA |
| CGST and SGST Credit reversed | 200000 | NA | Table 7H |
| IGST Credit claimed till March 2018 | 100000 | Table 6B | NA |
Situation 22: ITC Claimed in Wrong Head but reversed and reclaimed in September 2018
Mr A had paid Rs 100000.00 in IGST but inadvertently credit was claimed as Rs 100000 each in both CGST and SGST in March 2018. He reversed the credit under CGST and SGST till September 2018 through Column 4(B)(2) of GST-3B and claimed correct credit in IGST.
| Particulars | Amount | ITC Claimed-Table | ITC Reversed Table |
| CGST and SGST Credit | 200000 | Table 6B | NA |
| CGST and SGST Credit reversed | 200000 | NA | Table 12 |
| IGST Credit claimed till September 2018 | 100000 | Table 13 | NA |
Situation 23: ITC Claimed in Wrong Head but reversed with Annual Return
Mr A had paid Rs 100000.00 in IGST but inadvertently credit was claimed as Rs 100000 in both CGST and SGST in March 2018. He reversed the credit under CGST and SGST in Annual Return.
| Particulars | Amount | ITC Claimed-Table | ITC Reversed Table |
| CGST and SGST Credit | 200000 | Table 6B | NA |
| CGST and SGST Credit reversed | 200000 | NA | Table 7H with DRC-03 |
| IGST Credit remaining claimed | 100000 | Lapsed | NA |
