Technical Glitches in Reversal of ITC and our Suggestion

1. Many assesses are facing peculiar issue at the time of reversal of input tax credit.

2. Where an assessee has wrongly carried forward cenvat credit as CGST credit in GST TRAN-01 or has availed excess of only CGST credit in GSTR-3B and is now willing to reverse the same either suo moto or on the direction of the department through FORM GSTR-3B, the system is simultaneously reversing the same amount for SGST also, thus, enforcing the assessee to reverse SGST of equal amount. Similar error occurs in vice versa situation i.e. on reversal of SGST credit, the system is simultaneously reversing the same amount for CGST credit also.

3. It is to be noted that due to this restriction assesses are not able to reverse the credit either suo moto or on the direction of the department.

4. We appreciate the efforts made by the GST council and the government for resolving issues that the assessees are facing in the GST regime. We hope that a resolution is also provided for above said technical glitch on the common portal.

Our Suggestion:

5. In such a situation, it is advisable to write an intimation letter to the department informing about the said issue to avoid any interest and penalty.

-Pawan Arora, Joint Partner.

GST Law India is a blog on GST and allied commercial laws managed by members of the law firm ALA Legal.

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