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Clarification on ITC Discrepancies in GST

The document discusses clarifying the manner of dealing with discrepancies between the amount of input tax credit (ITC) availed by registered persons in FORM GSTR-3B and the amount available in FORM GSTR-2A during financial years 2017-18 and 2018-19. It provides clarification for scenarios where the supplier failed to file GSTR-1, filed GSTR-1 but failed to report a supply, or wrongly reported a business-to-business supply as business-to-consumer. In these cases, the discrepancy in ITC should be handled using the procedure in paragraph 4 of the document.

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76 views1 page

Clarification on ITC Discrepancies in GST

The document discusses clarifying the manner of dealing with discrepancies between the amount of input tax credit (ITC) availed by registered persons in FORM GSTR-3B and the amount available in FORM GSTR-2A during financial years 2017-18 and 2018-19. It provides clarification for scenarios where the supplier failed to file GSTR-1, filed GSTR-1 but failed to report a supply, or wrongly reported a business-to-business supply as business-to-consumer. In these cases, the discrepancy in ITC should be handled using the procedure in paragraph 4 of the document.

Uploaded by

goelshubham92
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

ITC available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and

Services Tax Rules Rules only with effect from 9th


October 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 view of this, various
representations have been received from the trade as well as the tax authorities, seeking
clarification regarding the manner of dealing with such discrepancies between the amount of
ITC availed by the registered persons in their FORM GSTR-3B and the amount as available in
their FORM GSTR-2A during FY 2017-18 and FY 2018-19.

3. In order to ensure uniformity in the implementation of the provisions of the law across
the field formations, the Board, in exercise of its powers conferred under section 168(1) of the
CGST Act, hereby clarifies as follows:

S. No. Scenario Clarification

a. Where the supplier has failed to file In such cases, the difference in ITC claimed by
FORM GSTR-1 for a tax period but the registered person in his return in FORM
has filed the return in FORM GSTR-3B and that available in FORM GSTR-2A
GSTR-3B for said tax period, due may be handled by following the procedure
to which the supplies made in the provided in para 4 below.
said tax period do not get reflected
in FORM GSTR-2A of the
recipients.

b. Where the supplier has filed FORM In such cases, the difference in ITC claimed by
GSTR-1 as well as return in FORM the registered person in his return in FORM
GSTR-3B for a tax period, but has GSTR-3B and that available in FORM GSTR-2A
failed to report a particular supply may be handled by following the procedure
in FORM GSTR-1, due to which provided in para 4 below.
the said supply does not get
reflected in FORM GSTR-2A of
the recipient.

c. Where supplies were made to a In such cases, the difference in ITC claimed by
registered person and invoice is the registered person in his return in FORM
issued as per Rule 46 of CGST GSTR-3B and that available in FORM GSTR-2A
Rules containing GSTIN of the may be handled by following the procedure
recipient, but supplier has wrongly provided in para 4 below.
reported the said supply as B2C

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