GST
ITC claimed under the wrong tax head
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Facts
DRC-01C compares heads separately. If GSTR-2B shows IGST credit but you claimed CGST and SGST, the CGST and SGST heads will show an excess even if the total is right.
Provisions and law
- Rule 88D, CGST Rules 2017Intimation DRC-01C when ITC in GSTR-3B exceeds GSTR-2B beyond a limit; reply in 7 days
- Sec 16(2), CGST Act 2017ITC needs a tax invoice, receipt of goods or services, tax paid by the supplier and a filed return
Analysis
Say GSTR-2B shows IGST of ₹90,000 and you claimed CGST ₹45,000 and SGST ₹45,000. The total matches but the heads do not, so the system flags an excess in CGST and SGST. Explain in Part B and correct the head in the next GSTR-3B by reversing the wrong head and claiming the right one. Check whether the supplier charged the wrong tax type, which is a separate problem to fix with him.
Conclusion
- Compare credit by head in GSTR-2B and GSTR-3B
- Explain the head error in Part B
- Reverse the wrong head and claim the right one in the next GSTR-3B
- If the supplier charged the wrong tax type, ask him to correct the invoice
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