Question 47:

WE have file our first GSTR 3B return on 28/08/2017 in the same we have to take CGST/SGST ITC of Rs.17.59 Lacks however we have made typing error and before filling the return we have corrected the same but system has taken earlier figure of 1,74,76,984/. Due to that our credit was exceeded by around 1.57 carores. At the same time we have noticed mistake and sent email to GSTIN and ask for solution for correcting said mistake. Again in October 2017 we have received mail from department (FWD the same by separate mail) and we have replied (copy of mail is attached herewith). Our replay to department based on the clarification received from GST department that whatever mistake your have made will be corrected at the time of filling GSTR 2 / 3 Return. We have Correctly filed GSTR 2 return and waiting for filling GSTR 3. Now after last GST Council meeting whole idea looks risky. Even if we reverse credit today we need to pay heavy interest for nothing as we never have intension to take such credit and department has not provided platform to correct said error/mistake. You are requested to advise us for reverse the same or wait till GSTR 3 mechanism

Answer

As per law Input Tax credit when availed in excess shall be added back to the output tax liability in the succeeding GSTR-3B. and can be paid through cash payment or through ITC along with interest but interest shall always be paid in cash.
In your case as you have correctly filed GSTR-2 then the credit will be reflected correctly when the same becomes active on portal. For now you are suggested to reverse the credit in succeeding GSTR-3B.

It is a technical issue that amount is wrongly informed which can be checked from GSTR-2 but the Departmental Officer may issue show cause notice for recovery of interest. He is also right because he will read Law as it is without interpretation. You should wait for show cause notice and go for litigation if the same is issued. GST is a new law and there is a scope of judgement in your favour. It is a case of natural justice. (reply dt. 05/28/2018)