Commissioner CBIC issued a Circular No. 183/15/2022-GST dated 27 th December, 2022 in which clarifications produced with respect to difference in ITC availed in Form GSTR 3B and GSTR 2A. This applicable for the financial years 2017-18 & 2018-19. It was a fact that Form GSTR 2A not made available to tax payers on the common portal during the initial stage of implementation of GST. This was mismatching between GSTR1 & 2A and restrictions regarding availment of ITC where provided under Rule 36(4) of CGST Rule 2017. But it was made with effective from 9th October 2019 onwards. Further restrictions also specified in Section 16 of CGST Act from 1st July 2017 itself. However, after considering the various representations from trade and tax authorities pertaining to the above is match this Circular now, give a uniformity in the implementation of provisions of law in exercise of powers confirmed u/s 168(1) of CGST Act. There are four different scenarios to be considered as below:
(1) Supplier failed to file GSTR 1 for a tax period but filed GSTR 3B
(2) Supplier filed Form GSTR 1 and Form GSTR 3B but failed to report a particular supply in GSTR 1, so that it is not get reflected in GSTR 2A
of the recipient.
(3) While filing GSTR 1 supplier wrongly reported the supply as B2C instead of B2B supply, so that Form GSTR 2A will not be get
reflected the same.
(4) Where supplier filed GSTR 1 and GSTR 3B for a period but, declared supply with wrong GSTIN of the recipient in Form GSTR 1. In the all above four situations this Circular made a clarifications as below:
Proper officer shall verify the eligibility of ITC between GSTR 3B and GSTR 2A and also shall make ensure the following conditions satisfied u/s 16of CGST Act.
(a) That he is in possession of tax invoice, debit note or such other tax paying documents.
(b) He has received the goods or services or both
(c) He has made payments of amount towards the value of supply along with tax payable. Moreover, officer shall check whether any reversal
of ITC is required to be made in accordance with Section 17 or 18 of CGST Act and also complied with Section 16(4) ( specific period with in which ITC availed). In addition to this while verifying the conditions in Section 16(2)( c) officer may be taken the following action.
(i) If difference between ITC claimed in Form GSTR 3B and GSTR 2A of the registered person in respect of a supplier for the said
financial year exceeds five lakhs officer shall ask them to produce a certificate from the Chartered Accountant or Cost Accountant certifying that supplies in respect of said invoices actually made by the supplier and tax on such supplies has been paid by him in the return of GSTR 3B. Besides such certificates issued by Chartered Accountants or CMA shall contain UDIN.
(ii) In case where difference between ITC claimed in GSTR 3B and 2A for the said financial year is less than or equal to five lakhs a certificate from the concerned supplier only need to submit. That is self-certification will be sufficient. The most important conditions for the financial year 2017-18 is that such taxpayer has to file return GSTR 3B, GSTR 1 on or before the due date of filing monthly return of March 2019. It means Section 16(4) proviso has to comply with. Therefore, if a tax payer not done as stated above such supplies are not eligible for this benefit of the Circular.
This circular will apply only to ongoing proceedings on scrutiny audit, investigation etc., only for the financial year 2017-18, 2018- 19 and not to the completed proceedings. However this circular will apply where any adjudication or appeal proceedings are still pending.
In short several notices issued by GST authorities regarding the mismatching and discrepancies in the scrutiny of return shall now come to an end after this above circular.
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