Find
GSTR-3B cannot be revised, so wrongly claimed ITC is reversed in a later GSTR-3B, Table 4(B). If the wrong credit was used to pay tax, interest under Sec 50(3) at 18 percent is payable from the date of use.
GST
Wrong ITC claimed in a filed GSTR-3B
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Provisions
Sec 50(3), CGST Act 2017; Rule 88B, CGST Rules 2017; Sec 17(5), CGST Act 2017
Analysis
Suppose you claimed ₹60,000 credit on a car purchase, which is blocked under Sec 17(5). Reverse ₹60,000 in the next GSTR-3B. If your credit ledger balance fell below ₹60,000 at any point after the claim, the credit was utilised and interest is due on the utilised amount for that period. If the balance always stayed above ₹60,000, no interest arises.
Close
- Identify the wrong credit and the month it was claimed
- Check daily credit ledger balances to see if it was utilised
- Reverse it in Table 4(B) of the next GSTR-3B
- Pay interest on any utilised part in cash
- Record the working for a possible notice
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