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GSTR 2A & GSTR 2B??

sakthi (Business consultant ) (137 Points)

24 February 2021

Hi Friends,

Regarding ITC claim, what report i have to check with my books of account whether GSTR2A (or) GSTR2B?? Some of the suppliers bills are not showing in 2B but available in 2A and i am unable to take credit in filing 3B BUT suppliers are sharing screen shots of return filing proof with the respective bills... Even i am having hard copies of suppliers bill and suppliers screen shots of GSTR1 proof, I am unable to take ITC in GSTR3B. What to do for this case??

Secondly while doing ITC reconciliation which report i have to check whether GSTR2A (or) GSTR2B??

Pl clarify the above 2 points.

Thanks in advance

sakthi

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12 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 24 February 2021

It is advisable that you check from GSTR-2B although you can choose either of them because as of now it is not specified which form to use for reconciliations. But with GSTR-2B you will have better control in reconciliations.

Take ITC as per GSTR-2B to avoid unnecessary litigation. Keep track of differences in reconciliations and remind your erring suppliers to file their returns on time

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sakthi (Business consultant ) (137 Points)
Replied 01 March 2021

Dear Zafar,

Thank you so much for your reply. Right now i am taking 2B details only for reconciliation and filing 3B, but some of the supplier bills are not reflecting in 2B and in the meantime it is showing in 2A and supplier also showing the proof of filing. For last month i have taken the ITC as per the screen shot & hard copies of the bills. Is it advisable? and can we clarify to department if they issue the SCN?

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 01 March 2021

You can take but then next time you will have to filter out those invoices from 2B as they will show in 2B in next month. A manual intervention have more chances of committing mistakes.

sakthi (Business consultant ) (137 Points)
Replied 12 March 2021

Thank you so much Zafar.

sakthi (Business consultant ) (137 Points)
Replied 12 March 2021

I have a doubt in GST audit FY 18-19. As per our auditor they have derived the list of In-eligible input credit due to following reasons,

1) GSTIN handwritten (is it the valid reason for in-eligble??)

2) GST have filed B2C instead of B2B (The supplier have shared the proof of GST filing & payment) - How to handle this kind of problem?

3) Supplier has not filed due to mistake - But accepted to file now. Is it possible? If so how they will show 18-19 bill to current date?

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 March 2021

1) "GSTIN is handwritten on the invoice" is not a valid reason to treat such ITC as ineligible. ITC can be availed if the supplier has filed his GSTR1 mentioning transaction of sale with you. You can check whether this transaction appears in GSTR2A or not. If yes, you can avail input tax credit. 2) If the supplier has filed his return showing B2B transaction as B2C, ITC in such case, cannot be availed by the buyer, even if the supplier shares proof of payment of tax. In order to get this credit, the supplier has to amend this transaction as B2B. But since time limit, to amend GSTR1 as well as, to avail ITC, for FY18-19 is already over, I don't think this would be an ideal solution. 3) Further, as the supplier has accepted the mistake and also agreed to correct the same (not sure, how exactly it would be done), just accept it. If s/he later says, it cannot be done, ask her/him to refund the tax component.

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CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 12 March 2021

Handwritten gstin is valid.

In the other two cases take certificate from your supplier to the effect and claim itc.

Since the department can deny such itc although not legally valid also take assurance from the supplier if possible that the supplier will make good the loss in case of any interest, penalty and tax charged.

sakthi (Business consultant ) (137 Points)
Replied 12 March 2021

Ok noted Zafar..Thank you so much

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 12 March 2021

ITS better that you take only the ITC reflecting in GSTR 2B for the current month claim.

If ITC is reflecting in GSTR 2A but not reflecting in GSTR 2B then it will reflect in the next month GSTR 2B.

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sakthi (Business consultant ) (137 Points)
Replied 15 March 2021

Thank you Ms. Poornima. Noted your points but some one has suggested me that avail ITC if the supplier have filed B2C instead of B2B by getting declaration from supplier. Is it workable?

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 15 March 2021

I think that's another favorable option but again the discrepancy, if at all, is noticed by the dept, you will have to reverse the same and pay interest. You probably can get confirmation from the vendor (to protect your interests) to pay such dues, if situation so arises. Also check if the auditor has any objection to availing credit on the basis of the such letters from vendors.

sakthi (Business consultant ) (137 Points)
Replied 15 March 2021

Yes our GST auditor is objecting. Can you pl share the letter format if you have to get the declaration from supplier. I have a proof of GST workings and payment challan in which they have mentioned our GSTIN in their workings. It would be better if i get letter from supplier. I think will take a chance and we will c later if any object has come from dept. Give me your advice. Pl