Ajit Agrawal asked 4 years ago
GSTR 9 Table 12 query
Claimed excess ITC in FY 18-19. How can I pay the difference now? Is it mandatory to pay through DRC-03 or it can be paid through ECL by showing the reversal amount in table 12 of gstr-9 and equally doing reversal of itc in 3B of September 2020?
Answer the question
Shubham Bansal answered 4 years ago
Hi,
You should reverse this through DRC-03 only to avoid any mismatch between the Financial years. Also you can use Credit Ledger Balance(subject to certain conditions and restrictions) to pay your liability through DRC-03 but interest to be paid through Cash Ledger only.
Ajit Agrawal
replied 4 years ago Thanks for replying. What are those conditions. Please enlighten.
Shubham Bansal
replied 4 years ago That you have to ensure that credit as on date belongs to such previous period for which reversal is being done. You cannot use credit available as of now to offset you past period liability.
It may be possible that you have utilised your previous credit for paying your liability in any further return and ITC available as of now belongs only to the current purchases, which is not to be utilised now for paying your previous liability.
Ajit Agrawal
replied 4 years ago What if we file gstr-9 with negative figures in itc table? Will there be a problem.
Shubham Bansal
replied 4 years ago There is no problem as such if you file with negative figures for FY 18-19 but you should satisfy that four conditions mentioned in 16(2) of CGST Act, 2017 for taking that excess credit and should be ready with the documents explaining difference.
Ajit Agrawal
replied 4 years ago That means we can expect notice from department.
Shubham Bansal
replied 4 years ago Yes Sir, Notice is expected in this case
Since Department also wanted to know the reason of claiming your excess ITC.
