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Availed ITC before Supplier Filed GSTR-1

sujit naha (accountant) (346 Points)

13 October 2020

1) We Availed ITC on Mar' 2020 as per GST Invoice date 15/03/20

2) But Supplier Said Invoice Uploaded at GSTR-1 on June'2020

Question: Can Availed ITC will be Rejected ? ... What is the Rule in such cases??

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14536 Points)
Replied 13 October 2020

As per section 16(2) of the CGST act 2017

1) You must have GST Tax Invoice of with correct GSTN of Supplier

2) You must received goods or services

3) supplier must deposit Tax amount with GOVT account collected from you

4) you must file return

and reflected in GSTR2A you can claim ITC , However ITC should not be under block credit under section 17(5) of the CGST act 2017 .

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Shivam RC (Student) (23683 Points)
Replied 13 October 2020

As per the Provision of Section 16(2) of the CGST Act 2017, Input Tax Credit (ITC) can be claimed only when the following "FOUR CONDITIONS" are satisfied :

(a). Possession of a Tax Invoice.
(b). Received the Goods or Services or both.
(c). Supplier must have deposited the taxes to the Government exchequer, and
(d). Recipient should have filed the Return.

If you satisfy the above mentioned four conditions, then you can claim ITC. No one can stop you. If your supplier have filed GSTR-3B and paid the taxes in the month of March 2020 itself, then there is no issue. You can check the status of filing returns of the supplier in the GST common portal. GSTR-1 ( auto populated in GSTR-2A of the Recipient ) is not the only determing factor for claiming ITC.

Moreover there will not be any big issue since the Government allowed to claim full ITC on the basis of ITC as reflected in Books of Accounts during the period "February 2020 to August 2020" and the Provision of Rule 36(4) of the CGST Rules 2017 ( capping of 10% of ITC on Invoices not uploaded by the supplier in his GSTR-1 ) would be applied cumulatively for the said period in the return in FORM GSTR-3B for the tax period of September, 2020 vide Notification No. 30/2020 - Central Tax, dated 03/04/2020.

So don't worry Sir. While checking the Cumulative effect of ITC for the period February 2020 to August 2020 in the month of September 2020, the Invoice details will get reflected since your Supplier have already uploaded the Invoice in his GSTR-1 in the month of June 2020. So your availed ITC cannot be "rejected".

Hope you understood...

Regards.

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