Clarification on "How to Deal with ITC Mismatch Notices (GSTR-3B Vs 2A) for FY 2017-18 & 2018-19" pursuant to 48th GST Council Meeting
48th GST Council meeting was held on 17th Dec 2022 via virtual modes. In the said meeting, it was decided to provide a solution/relief in case of a difference in Input Tax Credit (ITC) availed in FORM GSTR-3B Vs GSTR 2A for FY 2017-18 and 2018-19. Accordingly, the government has issued Circular No 183/15/2022 GST dated 27th Dec 2022 to provide procedure and clarification in this regard. This is a welcome circular and will help to address genuine hardship faced by taxpayers even though the tax is paid by the supplier and received notices in the below cases:
a) Tax paid by supplier but a mistake in GSTIN
b) Tax paid by supplier but shown in 82C
c) Tax paid by supplier but not reported in GSTR 1
d) Tax paid by supplier but GSTR 1 is not filed
In this article, we will discuss on said circular and the relief provided.
CLARIFICATION TO DEAL WITH DIFFERENCE IN ITC AVAILED IN GSTR-3B AS COMPARED WITH GSTR-2A FOR FY 2017-18 AND 2018-19 [183/15/2022-GST DT 27TH DEC 2017]
• Government has issued a welcome circular to provide relief for ITC mismatch in the initial year of GST implementation. This circular is applicable only for ITC difference of FY 2017-18 and FY 2018-19. It deals with below four scenarios:
a) GSTR 1 not filed case
Where the supplier has filed GSTR 3B but not filed GSTR 1, due to which the supplies made in the said tax period do not get reflected in FORM GSTR-2A of the recipients.
b) Failed to report invoice in GSTR 1
Where the supplier has filed GSTR-1 and GSTR-3B, but has failed to report a particular supply in GSTR-1, due to which the said supply does not get reflected in FORM GSTR-2A of the recipient.
c) Reported in B2C
Where the supplier has filed GSTR-1 and GSTR-3B, but supplier has wrongly reported the said supply as B2C supply, instead of B2B supply, in his FORM GSTR-1, due to which the said supply does not get reflected in FORM GSTR-2A of the said registered person
d) Wrong GSTIN
Where the supplier has filed GSTR-1 and GSTR-3B, but he has declared the supply with wrong GSTIN of the recipient in FORM GSTR-1.
• In above cases, proper officer will allow ITC claim, subject to compliance of other provisions of CGST Act 2017 (Sec 16, Sec 17 etc), as per below procedure:
| In case where differential ITC (CGST + SGST or IGST) claim [GSTR-3B minus GSTR-2A) exceeds by Rs 5 lakhs in case of particular supplier | Proper officer shall ask the registered person to produce a certificate for the concerned supplier from CA or CMA, certifying that supplies in respect of the said invoices of supplier have actually been made by the supplier to the said registered person and the tax on such supplies has been paid by the said supplier in his return in FORM GSTR 3B. Certificate issued by CA or CMA shall contain UDIN. |
| In case where differential ITC (CGST + SGST or IGST) claim (GSTR-3B minus GSTR-2A] is upto Rs S lakhs in case of particular supplier | Proper officer shall ask the claimant to produce a certificate from the concerned supplier to the effect that said supplies have actually been made by him to the said registered person and the tax on said supplies has been paid by the said supplier in his return in FORM GSTR 3B. |
This relaxation/beneficial procedure is not applicable to
- Completed proceeding of FY 2017-18/ FY 2018-19. [It is applicable only to ongoing proceedings in scrutiny/audit/ investigation / adjudication / appeal, etc. for FY 2017-18 and 2018-19]
- The claim of ITC made in the FORM GSTR-38 return filed after the due date of Sep, 2018 till the due date March, 2019, if supplier had not furnished details of the said supply in his FORM GSTR-1 till the due date of furnishing FORM GSTR 1 for the month of March, 2019.
[Views are strictly Personal. This document is only for general guidance only]
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