How to deal with difference in ITC availed in Form GSTR-3B Vs. Form GSTR-2A

CBIC Clarification 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 vide Circular-No -183/15/2022-GST. 

Hello readers —

Today I will discuss how to deal with ITC not reflected in GSTR-2A –for F.Y 2017-18 & 2018-19 in simplified manner-

Different scenarios where ITC not reflected in GSTR-2A for F.Y 2017-18 & 2018-19- 

1. Supplier has failed to file FORM –GSTR-1 but has filed FORM –GSTR-3B- 

Let’s understand with example-

During the initial stages of implementation of GST- GSTR-3B can be filed even if GSTR-1 not filed as GST PORTAL allowed the same – but ITC REFLECTED in GSTR-2A only when GSTR-1 filed.

Mr X filed GSTR-3B and regularly pay taxes but not uploaded GSTR-1 for F.Y 2017-18 /2018-19 so no ITC reflected in GSTR-2A. 

2. Supplier has filed both  FORM –GSTR-1 & FORM –GSTR-3B but failed to report a particular invoice in FORM GSTR-1 due to which ITC not reflected in GSTR-2A related to that particular invoice- 

Let’s understand with example- 

Mr X filed GSTR-3B and GSTR-1 also but failed to report a particular invoice related to Mr Y in GSTR-1 so ITC related to that particular invoice not reflected in GSTR-2A of Mr Y.

3. Supplier has filed both  FORM –GSTR-1 & FORM –GSTR-3B but particular supply has been reported as B TO C instead of B TO B supply due to which ITC not reflected in GSTR-2A 

Let’s understand with example-

Mr X filed GSTR-3B and GSTR-1 also but Mr Y was registered supplier but reported as unregistered supplier…so ITC not reflected in GSTR-2A

4. Supplier has filed both  FORM –GSTR-1 & FORM –GSTR-3B but wrong GSTN mentioned in FORM GSTR-1

Let’s understand with example-

Mr X filed GSTR-3B and GSTR-1 also but WRONG GSTN mentioned in GSTR-1 of Mr Y then ITC will not be reflected in GSTR-2A of Mr Y.

Clarification regarding above- ITC can be availed by recipient even if not reflecting in GSTR-2A only if –

Following conditions of Section 16 of CGST Act in respect of the input tax credit availed on such invoices by the said registered person: 

i. Recipient is in possession of a tax invoice or debit note issued by supplier or such other tax paying documents.

ii. Recipient has received the goods or services or both.

iii. Recipient has made payment for the amount towards value of supply along with tax. 

Now further check whether reversal of ITC required u/s 17 or 18 of CGST act 2017

• Further in order to verify whether tax on supply has been paid by the supplier ,following action may be taken by the proper officer-

a. In case difference between ITC claimed in GSTR-3B vs GSTR-2A exceeds Rs 5 lacs ,the proper officer shall ask the registered person to produce a certificate from CA or CMA with UDIN ,certifying that supplies have been actually made by supplier to registered person and tax on such supplies has been paid in GSTR-3B.

b. In case difference between ITC claimed in GSTR-3B vs GSTR-2A is up to Rs 5 lacs , the proper officer shall ask registered recipient to produce a certificate from concerned supplier that said supplies have been actually been made by him and tax on such supplies has been paid in GSTR-3B.

• Points to remember-

• • The aforesaid relaxations shall not be applicable to claim ITC made in the Form GSTR-3B return in case supplier has not furnished the details of supply in Form GSTR-1 till the due date of furnishing FORM GSTR-1 for the month of March 2019.
  • Above clarifications are applicable only on specific scenarios stated above and also bonafide errors committed during F.Y 2017-18 and F.Y 2018-19.
  • Further, these guidelines also applied on actual facts and circumstances of case and also apply only to on-going proceedings in scrutiny/audit etc for F.Y 2017-18 and F.Y 2018-19 and not to completed proceedings.

Queries /doubts related to above mailed at [email protected].