What is Goods and Services Tax reversal?
GST reversal refers to the repayment of Input Tax Credit (ITC) when eligibility conditions are not met, such as using inputs for exempt supplies. If ITC is wrongly claimed or utilized for ineligible purposes, businesses must reverse the credit to comply with GST laws. This ensures proper tax compliance and avoids penalties. Stay compliant with GST registration in Chennai to manage ITC correctly and prevent unnecessary reversals. Proper record-keeping and adherence to GST rules help businesses maintain seamless tax operations.