ITC for GSTR-3B to be taken from GSTR-2B or GSTR-2A

ITC for GSTR-3B to be taken from GSTR-2B or GSTR-2A

Often I have come across this question, should I take ITC for GSTR-3B from GSTR-2B or GSTR-2A.

In this article, I have tried to provide an answer to this question.

Now the issue of taking Taking Input Tax Credit from GSTR-2B or GSTR-2A arises because of rule 36(4) of CGST Rule 2017. So let’s first try to read and understand what this rule says:

Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using the invoice furnishing facility shall not exceed 5 percent of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility:

An important point to be noted after a careful reading of this article is:

ITC in respect of Invoices that have not been uploaded by Supplier as per sub-section (1) of section 37 shall be restricted to 5% of the ITC of the Invoices that have been uploaded by the supplier.

Uploading invoices in Section 37, sub-section (1) means showing the invoice as B2B supply in GSTR-1.

Invoices uploaded as B2B supply in GSTR-1 are reflected in GSTR-2A and GSTR-2B.

The Due Date of filing GSTR-1 is the 10th day of the month succeeding the said tax period. The same has been extended to 11th succeeding the month.

As per my understanding, rule 36(4) is linked to section 37(1).

Now readers may kindly also note that GSTR-2B is a static return, which is generated for the invoices which are uploaded up to the due date of filing GSTR-1 as per section 37(1).

The same is not the case with GSTR-2A, which is a dynamic return and it changes as and when GSTR-1 is filed.

After taking notings of all these things, one should prefer taking Input from GSTR-2B if we do not want to go in the litigation in future.

Disclaimer: Dear readers, this is not professional advice and just a general opinion. Your views and circumstances may be different and accordingly, the advice may change. Please consult your Chartered Accountant, before coming out with a conclusion.

The post ITC for GSTR-3B to be taken from GSTR-2B or GSTR-2A appeared first on Studycafe.

from Studycafe https://ift.tt/391KQ80