The Central Board of Indirect taxes & Customs (the “Board”) vide Circular No Circular No. 58/32/2018-GST dated September 04, 2018 has specified the alternative mechanism of recovery process of arrears in case of wrongly availed CENVAT credit under the existing law and CENVAT credit wrongly carried forward as transitional credit in the GST regime.
It had earlier clarified that recovery of arrears arising under the existing law shall be made as central tax liability to be paid through the utilization of the amount available in the electronic credit ledger or electronic cash ledger of the registered person. However, noting the unavailability of functionality to record this liability in the electronic liability register on the common portal, the Board has clarified that, “as an alternative method, taxpayers may reverse the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B”. It also clarified that “the applicable interest and penalty shall apply on all such reversals which shall be paid through entry in column 9 of Table 6.1 of FORM GSTR-3B”
Read more at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_No.58.pdf;jsessionid=AB306D26D2C0B01701068A9D26FAC261