Overview of Form GST DRC01C—CA. Satyadev Purohit

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The Tax Publishers GST--Recovery of Excess ITC Overview of Form GST DRC-01C CA. Satyadev Purohit The learned author seeks to make an overview of Form GST DRC-01C as inserted by the Central Government vide Notification No. 38/2023-Central Tax, dt. 4-8-2023, by which rule 88D has been issued under the CGST Rules providing for manner of dealing with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return. 1. Form GSTR-2B and its impact From August, 2020 and onwards, Form GSTR-2B has been introduced under the GST law that contains auto-generated details of input tax credit that would auto-populated in Form GSTR-3B of a taxpayer. A taxpayer can avail ITC only on the basis of the amount reflected in Form GSTR-2B. GSTR-2B is an auto-drafted ITC statement which is generated for every normal taxpayer on the basis of the information furnished by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). The statement indicates availability and non-availability of input tax credit to the taxpayer against each document filed by his suppliers. The process of GSTR-2B generation starts after ending of IFF, GSTR-5 and GSTR-6 due date on 13^th midnight and, therefore, GSTR-2B can be made available to the taxpayer in the afternoon of 14th of the month. Further, GSTR-2B is a static statement and is made available for each month on the 14^th day of the succeeding month. For example, for the month of July 2020, the statement was generated and made available to the registered person on 14th August 2020. Details of all the documents in GSTR-2B is made available online as well as through download facility. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Recovery of Excess ITC

Overview of Form GST DRC-01C

CA. Satyadev Purohit

The learned author seeks to make an overview of Form GST DRC-01C as inserted by the Central Government vide Notification No. 38/2023-Central Tax, dt. 4-8-2023, by which rule 88D has been issued under the CGST Rules providing for manner of dealing with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return.

1. Form GSTR-2B and its impact

From August, 2020 and onwards, Form GSTR-2B has been introduced under the GST law that contains auto-generated details of input tax credit that would auto-populated in Form GSTR-3B of a taxpayer. A taxpayer can avail ITC only on the basis of the amount reflected in Form GSTR-2B.

GSTR-2B is an auto-drafted ITC statement which is generated for every normal taxpayer on the basis of the information furnished by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). The statement indicates availability and non-availability of input tax credit to the taxpayer against each document filed by his suppliers.

The process of GSTR-2B generation starts after ending of IFF, GSTR-5 and GSTR-6 due date on 13^th midnight and, therefore, GSTR-2B can be made available to the taxpayer in the afternoon of 14th of the month.

Further, GSTR-2B is a static statement and is made available for each month on the 14^th day of the succeeding month. For example, for the month of July 2020, the statement was generated and made available to the registered person on 14th August 2020. Details of all the documents in GSTR-2B is made available online as well as through download facility.