Question

We are mentioned greater amount of ITC in GSTR-3B ,but as per books account is less ,how can rectify? its related of months of august-2018..Please suggest for save interest.

Answer

Facts of the case:
Higher amount of ITC was wrongfully claimed in GSTR 3B and now reversal to correct amount is needed.

Law Applicable:
(i) Time limit rectification in return, as per section 39 CGST, is;
" due date for furnishing of return for the month of September or actual date of furnishing of relevant annual return, whichever is earlier"

(ii) Reversal of ITC (other than by rule 42 and 43) is done under entry number 4(B)(2) of GSTR 3B.

(iii) As per section 50(3) CGST ;
"A taxable person who makes an undue or excess claim of input tax credit shall pay interest on such undue or excess claim at rate not exceeding twenty-four per cent"

Interpretation:
Since the error was in return for the month of August 2018 therefore the time limit for correction is still open. Reversal of ITC must be done under column 4(B)(2) of GSTR 3B. Interest @ 24% must be levied on ITC which was wrongfully claimed.

Conclusion:
The only way to reduce the interest liability is to reverse the excess ITC as soon as possible in GSTR 3B.  (Reply dt.01/05/2019)