Procedure for Handling Difference in ITC as per GSTR3B and GSTR2ACA. Satyadev Purohit

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers GST--Input Tax Credit Procedure for Handling Difference in ITC as per GSTR-3B and GSTR-2A CA. Satyadev Purohit In pursuance of the recommendation of the GST council in 48th Meeting, the CBIC has come out with a detailed clarification vide Circular No. 183/15/2022-GST, dt. 27-12-2022 to deal with difference in Input Tax Credit (ITC) claimed in FORM GSTR-3B as compared to that reflected in FORM GSTR-2A for FY 2017-18 and 2018-19. The learned author seeks to make an overview of the said clarification. 1. Introduction During the initial period of implementation of GST, during the financial year 2017-18 and 2018-19, the taxpayers have been claiming input tax credit (ITC) in their GSTR-3B on the basis of tax invoices issued by the supplier, irrespective of whether the details of such tax invoices could not be declared by the supplier in his GSTR-1. This practice has led to certain deficiencies or discrepancies in FORM GSTR-2A of their recipients. The discrepancies between the amount of ITC availed by the registered persons in their returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A are being noticed by the tax officers during proceedings such as scrutiny/audit/investigation etc. and notices are being issued in Form ASMT-10 asking the taxpayers to pay difference amount of tax or reverse the input tax credit not flowing from FORM GSTR-2A of the registered person, along with interest. It may be noted that Form GSTR-2A was not available to the taxpayers on the common portal during the initial stages of implementation of GST. Also, the restrictions regarding availment of ITC by the registered persons upto certain specified limit beyond the ITC available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "CGST Rules") only with effect from 09-10-2019. However, the availability of ITC was subjected to restrictions and conditions specified in Section 16 of CGST Act from 1st July, 2017 itself. In order to ensure uniformity in the proceeding for dealing with the case of difference of ITC claimed in Form GSTR-3B with that available in Form GSTR-2A of the recipient, the CBIC has come out with a clarification being Circular No. 183/15/2022-GST, dt. 27-12-2022. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

Procedure for Handling Difference in ITC as per GSTR-3B and GSTR-2A

CA. Satyadev Purohit

In pursuance of the recommendation of the GST council in 48th Meeting, the CBIC has come out with a detailed clarification vide Circular No. 183/15/2022-GST, dt. 27-12-2022 to deal with difference in Input Tax Credit (ITC) claimed in FORM GSTR-3B as compared to that reflected in FORM GSTR-2A for FY 2017-18 and 2018-19. The learned author seeks to make an overview of the said clarification.

1. Introduction

During the initial period of implementation of GST, during the financial year 2017-18 and 2018-19, the taxpayers have been claiming input tax credit (ITC) in their GSTR-3B on the basis of tax invoices issued by the supplier, irrespective of whether the details of such tax invoices could not be declared by the supplier in his GSTR-1.

This practice has led to certain deficiencies or discrepancies in FORM GSTR-2A of their recipients.

The discrepancies between the amount of ITC availed by the registered persons in their returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A are being noticed by the tax officers during proceedings such as scrutiny/audit/investigation etc. and notices are being issued in Form ASMT-10 asking the taxpayers to pay difference amount of tax or reverse the input tax credit not flowing from FORM GSTR-2A of the registered person, along with interest.

It may be noted that Form GSTR-2A was not available to the taxpayers on the common portal during the initial stages of implementation of GST. Also, the restrictions regarding availment of ITC by the registered persons upto certain specified limit beyond the ITC available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "CGST Rules") only with effect from 09-10-2019. However, the availability of ITC was subjected to restrictions and conditions specified in Section 16 of CGST Act from 1st July, 2017 itself.

In order to ensure uniformity in the proceeding for dealing with the case of difference of ITC claimed in Form GSTR-3B with that available in Form GSTR-2A of the recipient, the CBIC has come out with a clarification being Circular No. 183/15/2022-GST, dt. 27-12-2022.