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Previous Month ITC to Claim in Next Month

sujit naha (accountant) (350 Points)

30 September 2024

For Example :

Month : April -- ITC 1000 /- -- Showing In GSTR2B > But Not Claimed

Can we Claim above mentioned ITC in May ( Not Showing in GSTR2B ) ?

Question: If Yes , then How to Declare in May - GSTR3B - that this ITC is

already Appeared in GSTR2B in April

Please reply ... best regards

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4 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5138 Points)
Replied 01 October 2024

ITC (Input Tax Credit) can be claimed in May even if it's not showing in GSTR2B, but you need to follow the rules: 1. Verify the eligibility of ITC as per Section 16 of the CGST Act. 2. Ensure the ITC was not claimed earlier. 3. Declare the ITC in Table 4(A) of GSTR3B (May). 4. In Table 4(A), mention the details of the invoice (date, number, and value). 5. In the "Notes" column, mention "ITC claimed as per Section 16(4) - Not appearing in GSTR2B". 6. Keep a record of the ITC claimed and the corresponding invoice details. Remember, GSTR2B is only a tool to help you identify available ITC. You can claim ITC even if it's not appearing in GSTR2B, but you need to follow the rules and maintain proper documentation.

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sujit naha (accountant) (350 Points)
Replied 02 October 2024

Sir, Many Many thanks for your kind support

But there is no option in GSTR3B - 4A to submit any Text descripttions

i.e. Invoice No., Date , etc. Also there is No Notes Column which you suggested

Sir please reply how to do that as per your suggestion

best regards

Sujit Naha

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5138 Points)
Replied 02 October 2024

You are correct that there is no option to submit text descripttions in Table 4A of GSTR3B. In that case, you can follow these steps: 1. Claim the ITC in Table 4(A) of GSTR3B (May). 2. In the "Notes" column, you can enter a brief descripttion like "ITC claimed as per Sec 16(4)" or "ITC not appearing in GSTR2B". 3. Maintain a separate record or document that provides detailed explanations and supporting documents for the ITC claimed. This will help in case of any future audits or queries. Remember to consult a GST expert or chartered accountant for specific guidance on your situation. They can help you ensure you're meeting all the requirements and following the correct procedures.

Khushbu Bansal (student) (48 Points)
Replied 03 October 2024

Yes, you can claim the ITC (Input Tax Credit) in May, even if it was reflected in your GSTR-2B for April but not claimed in that month. As per GST law, the ITC can be claimed in a subsequent month provided it is within the time limits prescribed for availing ITC, i.e., within the September return of the next financial year or the date of filing the annual return, whichever is earlier.

Steps to Declare ITC in GSTR-3B for May:

Identify the missed ITC:
Since the ITC appeared in your GSTR-2B in April but was not claimed, you need to adjust this in your GSTR-3B for May.
Declare ITC in GSTR-3B for May:
- In Table 4 (Eligible ITC) of GSTR-3B for May, you can claim this credit.
- The ITC should be added under the appropriate Input or Input Services heading in Table 4(A)(5) (i.e., "All other ITC").
- Mention that this ITC appeared in GSTR-2B of April but is being claimed in May.
Keep proper documentation:
Since the ITC pertains to April's GSTR-2B, ensure you maintain documentation showing that it was reflected in GSTR-2B but was claimed in the subsequent month. This will help during reconciliation or GST audits.

Sample Entry in GSTR-3B (May):

Go to Table 4(A) (ITC Available) in GSTR-3B:
- 4(A)(5) All Other ITC: Add ₹1,000 (April ITC amount).
This will ensure that the ITC is accounted for in May and you can still utilize the tax credit.