Handling Ineligible ITC in GSTR-3B 📄

Here’s what to do....

In this video, we clear up a common confusion many taxpayers have in filing #GSTR3B - What to do when an #IneligibleCredit appears in 2B.

Should you reject it in IMS?
✖ Not really!

Should you ignore it?
✖ Oh NO!

Reduce it while availing ITC in Table 4(A)?
✖ Not at all!

Watch this now to understand the right disclosure method for ITC blocked u/s 17(5), aligning with circular 170 and how to handle it in GSTR-3B using Table 4(A)(5) and 4(B)(1).

Now why is it IMPORTANT? For the big batch of past period #GSTlitigations, ever attempted to explain to convince any officer that ineligible credit is not reversed, rather never availed in the first place..? Anyone who has gone through the pain knows what needs to be done now!

While a wrong disclosure may not necessarily have legal implication as long as ineligible credit is unavailed, it could pose practical challenges in future for one to prove that such credits are indeed not availed and are duly reversed upon availment.

A simple step to prevent unwarranted disputes in future!

Afterall, a good tax compliance is not just about being compliant, but to put in place best practices to avoid disputes in future.

Share with us your experiences and similar simple hacks!

Stay compliant. Stay informed.

#GSTwithSaradha
GGSH & Co

#GSTR2B #InputTaxCredit #GSTSimplified #ITCReversal # GSTCompliance #GSTIndia #KnowYourGST #CGST #SGST #GSTreturns #GSTR