Question 40:
1. As per rule 42 of CGST Rules do we need to calculate for ITC reversal on both monthly (rule42(1)) and annual basis (rule 42(2)).?

2. In case we have to reverse the credit, we will add liability in GSTR 3B but the tax liabilities wont match with the GSTR1. Similarly, in case of annual amount being less, we will have to add to the credit but the same wont be matching with invoice coming against my portal. will it create problem in my assessment?

Answer
1. Yes, as per Rule 42 you should reverse the credit firstly on provisionally basis for each tax period and thereafter final ITC shall be determined for the financial year as per the said rule but should be before the due date for filing the return for the month of September following the end of the financial year to which such credit relates.

2. In GSTR-3B format in tile no 4( "eligible ITC" sub field (B)(1) ITC reversed on account of rule 42 and 43) will be separately shown. Thus there is no question of mismatching.
when the ITC is increased on final basis in GSTR- 3B but the details is also separately shown in GSTR-2(when the same is active) so there is also no question of mismatching. (reply dt. 05/24/2018)