CIRCULAR NO. 183/15/2022-GST DATED 27-12-2022, CLARIFICATION ON ITC MISMATCH FOR FY 2017-18 AND 2018-19

CIRCULAR NO. 183/15/2022-GST DATED 27-12-2022

SUB : CLARIFICATION ON DEALING WITH MIS-MATCH OF ITC BETWEEN 3B AND 2A FOR FY 2017-18 & 2018-19

[ अगर 3B और 2A में ITC में Difference है तो GST Officer को क्या Process follow करना है ]

MAIN REASONS OF ITC MISMATCH ( ITC में अंतर क मुख्य कारण )
Sr. No. Case Effect
1 Supplier not filed his GSTR-1 but Filed GSTR-3B Purchase (ITC) NOT reflected in 2A of Buyer.
2 Supplier filed his GSTR-1 and GSTR-3B but NOT a particular Invoice. Purchase (ITC) NOT reflected in 2A of Buyer.
3 Supplier filed his GSTR-1 but wrongly shown B2B invoice as B2C invoice. Purchase (ITC) NOT reflected in 2A of Buyer.
4 Supplier filed his GSTR-1 and GSTR-3B but reported wrong GSTIN. Purchase (ITC) NOT reflected in 2A of Buyer.
DESCREPENCIES IN GST PORTAL (GST Portal की कमियाँ या बार-बार होने वाली नौटंकी)
Sr. No. Case Effect
1 GSTR-2A not available during FY 2017-18 and FY 2018-19. No facility to check if Supplier has shown our Invoice, So, claimed ITC as per Invoices.
2 Simple conditions for availing ITC were applicable during FY 2017-18 & 2018-19. ITC claimed as per rules applicable during that period.
3 Rule 36(4) effective from 09-10-2019. ITC restriction was not there, so, claimed ITC as per Invoices.
Simple Conditions as per Sec-16 for availing ITC during FY 2017-18 & 2018-19
A buyer was allowed to  avail ITC, if :
1 He has Purchase Invoice or Debit Note issued by Supplier.
2 He has received the Goods or Service or Both.
3 He has paid the amount of the invoice or Debit Note  (Taxable Amount + Tax) to the Supplier.
4 He has reversed blocked ITC / Ineligible ITC as per Sec-17 & 18.
5 ITC has been claimed within last date as per Sec-16(4).
VERIFICATION PROCESS TO BE FOLLOWED BY GST OFFICER
GST OFFICER shall ask for the details of all the invoices which are NOT being reflacted in GSTR-2A of the BUYER but ITC has been availed by the BUYER in GSTR-3B.
THEN, the GST Officer will ascertain that the simple conditions under Sec-16 has been fulfilled or not.
If all the above 5 conditions under Sec-16 are fulfilled by the BUYER, the GST Officer will INITIATE ONE MORE IMPORTANT CHECK :

“Has the condition under Sec-16(2)(c) been fulfilled or not”

Sec-16(2)(c) talks about PAYMENT OF TAX BY THE SUPPLIER against the invoices (ITC of which is being claimed by the BUYER).
Relief of excess ITC taken in GSTR-3B of the BUYER will only provided if the SUPPLIER has paid taxes.
(For the Invoices, ITC of which are being claimed by the BUYER).
To VERIFY that the SUPPLIER has paid his taxes, the following action may be taken by the GST OFFICER :
IF ITC Difference is more than Rs. 5 Lakhs for a FY IF ITC Difference is upto Rs. 5 Lakhs for a FY
A certificate from the SUPPLIER issued by a CA or CMA  certifying that the SUPPLIER has actually made Supplies and paid his taxes in GSTR-3B as against the Invoice (ITC of which has been claimed by the BUYER and the Certificate shall contain UDIN. Certificate shall be produced by the BUYER before the GST OFFICER. A certificate from and issued by the SUPPLIER certifying that the SUPPLIER has actually made Supplies and paid his taxes in GSTR-3B as against the Invoice (ITC of which has been claimed by the BUYER. Certificate shall be produced by the BUYER before the GST OFFICER.
Note :
1 These clarifications are case specific (These are not provisions of Law) and are applicable only to the BONAFIDE ERRORS committed by the BUYER.
2 These instructions to the GST Officers will apply only to the ongoing proceedings in scrutiny/audit/ investigation, etc. for FY 2017-18 and 2018-19 and not to the completed proceedings. However, these instructions will apply in those cases for FY 2017-18 and 2018-19 where any adjudication or appeal proceedings are still pending.
3 Last date to claim ITC for FY 2017-18 as per Sec-16 was 31-03-2019.
cir-183-15-2022-cgst

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