Latest Query & Reply

I had filed Trans 1 of my client. Taken Excise credit in CGST.

But now client is saying that they have some arrangement with company and now my client want to reverse some amount of credit taken in Trans 1.

Previous year adjustments were allowed only upto September 2018 return. Client has informed me about this in the month of October 2018.

Now in this case how should I deal with this and report in Audit Report of Financial year 2017-18?


As you mentioned in the query that adjustment pertaining to the financial year 2017-18 is allowed upto September months return, thus you can take the following measure to resolve this issue—

First of all check the figures of books of accounts, if such figures of books of accounts are according to TRAN-1, in other words if accounting entry has not been passed, as there is no mismatch and auditor do not have to comment on this issue.

Whereas if books of accounts are not maintained according to TRAN-1, the auditor will give remark in Reason for un-reconciled difference in ITC.

Further as the company wants to reverse ITC claimed earlier in TRAN-1, for the safer side the company should reduce such amount of ITC from the amount of ITC available in the next GSTR-3B return. By doing this department will get payment, and the taxpayer will face lesser complication when department will raise any query or explanation.