TMI BlogClarification to deal with difference in Input Tax Credit (ITC) availed in Form GSTR-3B as compared to that detailed in Form GSTR-2A for FY 2017-18 and 2018-19.X X X X Extracts X X X X X X X X Extracts X X X X ..... the initial period of implementation of GST, during the financial years 2017-18 and 2018-19, in many cases, the suppliers have failed to furnish the correct details of outward supplies in their Form GSTR-1, which has led to certain deficiencies or discrepancies in Form GSTR-2A of their recipients. However, the concerned recipients may have availed input tax credit on the said supplies in their returns in Form GSTR-3B. 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., due to such credit not flowing to Form GSTR-2A of the said registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion a. Where the supplier has failed to file Form GSTR-1 for a tax period but has filed the return in Form GSTR-3B for said tax period, due to which the supplies made in the said tax period do not get reflected in Form GSTR-2A of the recipients. In such cases, the difference in ITC claimed by the registered person in his return in Form GSTR-3B and that available in Form GSTR-2A may be handled by following the procedure provided in para 4 below. b. Where the supplier has filed Form GSTR-1 as well as return in Form GSTR-3B for a tax period, but has failed to report a particular supply in Form GSTR-1, due to which the said supply does not get reflected in Form GSTR-2A of the recipient. In such cases, the difference in ITC claimed by the regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered person, whose GSTIN has been mentioned wrongly, and such action will be pursued as an independent action. 4. The proper officer shall first seek the details from the registered person regarding all the invoices on which ITC has been availed by the registered person in his Form GSTR 3B but which are not reflecting in his Form GSTR 2A. He shall then ascertain fulfilment of the following conditions of section 16 of the RGST Act in respect of the input-tax credit availed on such invoices by the said registered person : (i) that he is in possession of a tax invoice or debit note issued by the supplier or such other tax paying documents ; (ii) that he has received the goods or services or both ; (iii) that he has made payment for the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between the ITC claimed in Form GSTR-3B and that available in Form GSTR 2A of the registered person in respect of a supplier for the said financial year is up to Rs. 5 lakh, the proper officer shall ask the claimant to produce a certificate from the concerned supplier to the effect that said supplies have actually been made by him to the said registered person and the tax on said supplies has been paid by the said supplier in his return in Form GSTR 3B. 4.2 However, it may be noted that for the period FY 2017-18, as per proviso to section 16(4) of the RGST Act, the aforesaid relaxations shall not be applicable to the claim of ITC made in the Form GSTR-3B return filed after the due date of furnishing return for the month of September, 2018 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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