PROVISIONAL CREDIT BALANCE

This query is : Resolved

Priyanka Roy (Querist)
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20 April 2024 SOME OF MY ITC SHOW IN PROVISIONAL LEDGER...WHY IT IS HAPPENED BECAUSE I CHECKED ALL MY SUPPLIERS ARE ALLREADY FILLED THEIR RETURN...PLEASE SUGGEST

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 If some of your Input Tax Credit (ITC) is showing in the provisional ledger even though your suppliers have already filed their returns, there could be a few reasons for this:

### Reasons for ITC in Provisional Ledger:

1. **Mismatch in GSTR-2A and GSTR-3B**:
- The provisional credit reflects ITC based on GSTR-2A data (auto-populated from your suppliers' GSTR-1 filings) but is subject to reconciliation with your own GSTR-3B returns.
- If there is a delay or mismatch in your GSTR-3B filings compared to your suppliers' GSTR-1 filings, the system might temporarily reflect the ITC in the provisional ledger until reconciliation is complete.

2. **Mismatch in Invoices or Data**:
- There could be discrepancies in the invoices uploaded by your suppliers or the data entered in your GSTR-3B returns.
- Ensure that all invoices have been correctly uploaded and matched with GSTR-2A data to avoid any discrepancies in ITC claims.

3. **Reconciliation Delays**:
- Sometimes, the reconciliation process between GSTR-2A (supplier's data) and GSTR-3B (your data) may take time, especially if there are large volumes of transactions or technical issues.
- The ITC remains provisional until the reconciliation process is complete and any discrepancies are resolved.

### Steps to Resolve:

To resolve the issue of ITC showing in the provisional ledger:

- **Verify GSTR-2A and GSTR-3B**: Ensure that all invoices from your suppliers are correctly reflecting in your GSTR-2A and that you have correctly reported them in your GSTR-3B returns.

- **Reconcile Data**: Conduct regular reconciliations between GSTR-2A and GSTR-3B to identify and rectify any mismatches promptly.

- **Communicate with Suppliers**: Coordinate with your suppliers to ensure they have filed accurate and timely GSTR-1 returns. Any delays or inaccuracies on their part could impact your ITC claims.

- **Consult with a Tax Professional**: If the issue persists or if you are unsure about the reconciliation process, seek guidance from a tax professional or consultant who can assist in resolving the discrepancies and optimizing your ITC claims.

### Conclusion:

The provisional ledger is meant to provide you with an estimate of eligible ITC based on GSTR-2A data, but the final ITC eligibility is determined after reconciliation with your own GSTR-3B filings. Ensure all filings are accurate and up-to-date to avoid any delays or issues with claiming Input Tax Credit. If the problem persists, consulting with a tax expert or reaching out to the GST helpdesk for assistance would be advisable.