Facts: In FY- 2018-19 - We had claimed ITC in excess for some months and in short in some months. We failed to verify Form 2A during this period. However, we verified the data later and in February 2019 refunded the excess ITC claimed till June 2018 with interest and claimed the unclaimed ITC (unclaimed for few months till June 2018) and in March 2019 refunded the excess ITC claimed till January 2019 with interest and claimed the unclaimed ITC (unclaimed for few months till january 2019) -
Problem The ITC claimed and available table on the GST Portal today shows for the fy 2018-19
20 July 2024
It seems there is a discrepancy in the ITC (Input Tax Credit) claimed versus the credit available in GSTR 2A for FY 2018-19. Here’s a step-by-step approach to understand and rectify this situation:
### Understanding the Discrepancy:
1. **ITC Claimed (GSTR 3B):** - GSTR 3B is a summary return where you declare your tax liabilities and ITC claims for each month. - You claimed ITC based on your purchases as reported in GSTR 3B.
2. **Credit Available (GSTR 2A):** - GSTR 2A is a dynamic statement containing details of all inward supplies (purchases) as uploaded by your suppliers. - It reflects the ITC available to you based on the invoices uploaded by your suppliers.
3. **Cumulative Shortfall/Excess:** - The figures "-61,388.78" and "-61,389.78" indicate a cumulative shortfall in ITC as per your GSTR 3B compared to GSTR 2A. This suggests that based on your claims in GSTR 3B, the ITC available in GSTR 2A is less by these amounts.
4. **Notification Received:** - You received a notification stating that the ITC claimed in GSTR 3B exceeds Rs.1.48 lakh compared to the credit available in GSTR 2A. This indicates a significant difference that needs rectification.
### Steps to Rectify:
1. **Verify GSTR 2A Data:** - Ensure all your suppliers have uploaded their invoices correctly on the GST portal. - Verify that all your eligible inward supplies are reflected in your GSTR 2A accurately.
2. **Rectify Discrepancies:** - Identify the invoices or periods where there are discrepancies between your GSTR 3B and GSTR 2A. - If you have missed claiming ITC for certain invoices or periods, you can amend your GSTR 3B (if within the allowed time limits) to correct these errors.
3. **Reconciliation:** - Reconcile your books of accounts with your GSTR 3B and GSTR 2A data. - Ensure that the figures for ITC claimed and available match after reconciliation.
4. **Rectification Steps:** - If there is an excess ITC claimed (as indicated by the notification), you may need to reverse this excess claim. - Alternatively, if there are unclaimed credits in GSTR 2A that were missed in GSTR 3B, you can adjust them accordingly in your subsequent filings.
5. **Consult with a Tax Professional:** - Given the complexities involved, it’s advisable to consult with a tax professional or GST expert who can assist in reconciling your GST data and ensuring compliance.
### Conclusion:
To rectify the cumulative shortfall/excess figure and make it zero for FY 2018-19, you need to carefully reconcile your ITC claimed in GSTR 3B with the credit available in GSTR 2A. Address any discrepancies by amending your returns or adjusting subsequent filings as necessary. Timely action and accurate reconciliation will help in closing the FY 18-19 smoothly in terms of GST compliance.
If you need further assistance in handling specific issues or understanding GST procedures, consulting with a tax advisor would be beneficial.
CAclubindia
