Mandatory furnishing of correct and proper information of ineligible Input Tax Credit and reversal thereof in Form GSTR-3B

That CBIC circular no. 170/02/2022- GST has highlighted incorrect reporting of ineligible Input Tax Credit by Taxpayers. In this context, it has been observed that large portion of unclaimed IGST ITC has led to loss of revenue for State of Maharashtra.

In this respect you are hereby advised that entire ITC available be first claimed in Table 4A of GSTR3B, then all form of ineligible ITC be reversed in Table 4B of GSTR3B. Even the ITC ineligible under Section 17(5) be also reversed in Table 4B for proper calculation of net ITC.

It is further advised that ITC pertaining to financial year 2021-22, which is remained to be claimed, can be claimed in GSTR3B of any tax period to be filed till 30th November, 2022. For this purpose, you are advised to first show entire ineligible ITC of FY 21-22 in Table 4A of GSTR3B of GSTR-3B, which can be filed till 30th November, 2022 and then reverse the entire ineligible ITC in Table 4B. As the details of ineligible ITC are being provided in Table 4B, no further details are required to be provided in Table 4D.

Kindly ensure compliance