Affluence Advisory
Quick Summary
The captioned rule deals with differences in ITC availed as per GSTR-3B and credit reflecting in GSTR-2B of a particular period/periods. Brief background Before insertion of Rule 36(4) of CGST Rules, i.e. for the period upto 9 October 2019, input tax credit was availed by taxpayer on self-decl
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Rule 88D is designed to address situations where the Input Tax Credit (ITC) availed in GSTR-3B exceeds the credit reflected in GSTR-2B for a specific period. It mandates a process for taxpayers to reconcile these differences.
If an intimation is issued under Rule 88D, the taxpayer must either pay the excess ITC amount along with interest via DRC-03 or provide a detailed explanation for the difference in Part B of Form DRC-01C within seven days.
Failure to either pay the excess ITC or provide a satisfactory explanation within the stipulated time can lead to the issuance of a notice under Section 73 or 74 of the CGST Act, demanding the differential amount.
Yes, if a taxpayer fails to address the intimation under Rule 88D by paying the excess ITC or providing a reply, they will be restricted from filing their GSTR-1 for the subsequent tax period, as per the new clause (e) in Rule 59(6).
Initially, ITC was availed on a self-declaration basis. From October 2019, it became mandatory to match ITC with GSTR-2A, with a 20% buffer for unmatched invoices, which was later reduced to 10% and then 5%. From January 2022, Section 16(2)(aa) restricted ITC availment to GSTR-2B reflecting invoices, and Rule 88D further formalised the process for managing discrepancies.
CAclubindia
