GST--Returns

GSTR 3B v GSTR 2A for Financial Year 2017-18 and 2018-19

CA. Akash Phophalia 

GST law was introduced with effect from 1-7-2017 and thereafter it had swung all the taxpayers in its wave of changes introduced through various notifications, circulars and frequent amendments. In the initial years, several mistakes took place in regard to filing of GSTR-1, claim of input tax credit, comparison of input tax credit claimed in GSTR-3B with GSTR-2A, non-reflection of invoices in GSTR-2A and so on. This issue has been taken care of in 48th GST Council meeting and accordingly a Circular has been issued on 27-12-2022 clarifying the manner to deal with difference Input tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed inform GSTR-2A for financial year 2018-19. In this article, the author discusses the said circular in details.

1. Issue covered

In the above said circular, the CBIC aims at covering the issue of non-reflection of invoices in GSTR-2A thereby resulting in difference in input tax credit claimed in GSTR-3B and input tax credit reflecting in GSTR-2A. Owing to such difference in GSTR-2A and GSTR-3B several proceedings were initiated in the form of issue of show cause notice in form DRC-01 or DRC-01A, issue of ASMT-10, GST audit by departmental officers and so on. Some of the proceedings were completed and several proceedings are ongoing. Out of many completed proceedings, some are appealed against.

2. Relevant legal provisions