Reclaim of reversal :

Once claim of ITC on an invoice has been auto-reversed, the recipient cannot claim it again unless the supplier uploads that invoice in his return. After auto-reversal, if at any stage, but before 30th September of the next financial year, the supplier uploads the invoice for corresponding outward supply, the invoice shall automatically appear in the return of the recipient and the recipient shall be eligible to claim ITC on that invoice. The interest paid by him on auto-reversal shall also be credited back to his cash ledger. If any taxpayer claims ITC on an invoice that has been auto-reversed in the past without the corresponding supplier uploading that invoice, such ITC shall be auto-reversed in the next month itself and a higher interest shall be payable on such auto-reversal.

The above process outlines the process for invoices and the same process would apply for debit notes as well. Debit notes are in the nature of increase in value of supply and therefore increase the tax payable for supplies and increase the ITC available with the recipient which, in effect, is same as that in case of invoices. Therefore, wherever there is a mismatch, in both cases, the ITC of recipient is subjected to auto reversal.