Relief on Mismatched ITC till FY-2019-2020

Uncover relief on mismatched Input Tax Credit (ITC) issues from FY 2017-2018 to 2019-2020. Explore the impact of GST Department’s press release and circular, providing insights into ITC claim challenges and reconciliation litigations. Gain clarity on the Karnataka High Court judgment favoring taxpayers and the subsequent implications for addressing ITC mismatches.

Introductions:-

Dear Friends and Professional, this article is going to clarify and solve your ITC mismatch litigations during the period from 2017-2018 to 2019-2020. In this article I am going to explain about the mismatch of ITC between your purchase register and GSTR-2A. From commencement of GST in our country to till date, it has been observed that the ITC claim  on purchase is a challenge and brings reconciliation litigations time to time. Now it is seen that the GST Department is serving frequent notice to the assesses for clarification of mismatch ITC. Regarding this mismatch ITC, there is a relief given by GST Department by issuing press release as well circular to mitigate the ITC mismatch issues.

Relief on Mismatched ITC

Keeping in view of identical errors and technical glitched during the period of FY-2017-2018 and FY-2018-2019, the Department had issued a press release, Dt. 18-10-2018, stating that GSTR-2A is only a facilitator, and it will not impact on availing of ITC. The Tax Payers can avail ITC on self-assessment basis in consonance with the provisions of section 16 of GST Act. As per the press release, the Department will show lenience in raising demand differences between GSTR3B and GSTR-2A for the period pertaining to FY-2017-2018 to FY-2018-2019.

Keeping in view of difficulties faced by the tax payers, the Department had taken decision in 48th GST Council, held on dated 17-12-2022. Pursuant to the decision, the Department also issued circular on vide Circular No. 183/15/2022-GST, dated 27-12-2022.

In this Circular, it is clarified that the tax payer can avail ITC as per purchase register, having valid GST invoice. The ITC difference between GSTR-3B and GSTR-2A, the Department will show leniency and relaxation to assesses.

Relief on Mismatched ITC till FY-2019-2020

That challenging to the circular No. 183/15/2022-GST, dated 27-12-2022, a writ petition No. 16175 was filed before the High Court of Karnataka, Bengaluru, regarding the mismatch of ITC between in GSTR-3B and GSTR-2A.

On dated 6th January, 2023, The Honorable Karnataka High Court pronounced the judgment in favor of the Tax payer. In this writ petition, it is pronounced that the petitioner will get relief till FY-2019-2020, and the honorable court directed to the respondent to proceed further in accordance with law and in terms of the circular dated 27.12.2022.

Conclusion:-

In this article , it is to inform you all the tax payers that if you are facing such mismatch of ITC between GSTR-3B and GSTR-2A, then you can follow the GST Circular and High Court order for ready reference. If you are receiving the notice from GST officer, regarding clarification of mismatch of ITC in the period of FY-2017-2018, FY-2018-2019 and FY-2019-2020. Here it is to inform you that the GST officer can call you for reconciliation of ITC which is claimed in your GSTR-3B, for that you have to ready the GST Invoices for the said periods and comply with the notice.