ITC Rules – Manner of Reversal
- Remaining credit available for business purpose and for taxable and zero rated supplies “C3 = C2 – (D1+D2)”;
- C3 to be computed separately for CGST, SGST, UTGST and IGST;
- D1 and D2 shall be added to output tax liability provided invoice wise segregation has been made;
- Credit calculated on provisional basis shall be computed finally before due date of filing returns for the month of September following the end of the FY to which credit relates;
- In case amount calculated exceeds the provisional calculation the differential amount shall be added to the output tax liability and interest from the month of April of next FY till the date of payment to be paid;
- In case amount finally calculated is short of the provisional calculation, the differential amount shall be taken as credit in the month of September.