3B Computation query

This query is : Resolved

CA Parul Saxena (Querist)
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15 January 2021 Date of R1 for quarterly filer was 13th Jan...so input is appearing in 2B of Dec 2020 so while filing 3B whether i should consider this input in Dec aur Jan return?
In short i am asking to calculate limit of rule 36(4) i should take this input or not?

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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06 July 2024 For the purpose of calculating the eligible input tax credit (ITC) under Rule 36(4) of the GST rules, you should consider the following:

1. **Quarterly Filers and Rule 36(4):** As a quarterly filer, you are required to reconcile and declare the ITC in your GSTR-3B return for each quarter. Rule 36(4) restricts the ITC that can be claimed in GSTR-3B to 105% of the eligible ITC available in your GSTR-2B of the previous month.

2. **Treatment of Input Tax Credit (ITC):**
- **Input appearing in 2B of Dec 2020:** If inputs are appearing in your GSTR-2B for December 2020, and your R1 (return for the first quarter) filing date was 13th January, this input would typically be considered for your January return under regular circumstances, not December.
- **Timing of ITC in 3B:** When filing your GSTR-3B for January, you should consider the ITC available in your GSTR-2B of December 2020. This is because Rule 36(4) ties the ITC claim in GSTR-3B to the preceding month's GSTR-2B.

3. **Calculation Limitation:** Rule 36(4) limits the ITC that can be claimed in GSTR-3B to 105% of the ITC available in GSTR-2B of the previous month. Therefore, for your January GSTR-3B, you should calculate your ITC eligibility based on the GSTR-2B of December 2020.

In summary, for your January GSTR-3B filing as a quarterly filer, you should consider the inputs appearing in your GSTR-2B of December 2020 to calculate the ITC limit under Rule 36(4). This is because the inputs appearing in the GSTR-2B of December are relevant for your subsequent month's filing, which in this case is January.