Since introduction of auto drafted ITC statement in form GSTR 2B the taxpayers were under dilemma as to whether to avail ITC as per GSTR 2A or GSTR 2B.
In this regards the Central Board of Indirect Taxes and Customs (CBIC), via its Twitter handle has today clarified that Input Tax Credit ( ITC ) can be availed based on details available in FORM GSTR-2B.
The CBIC was responding to an inquiry from one Mr. Rahul Modi, who asked whether the Goods and Service Tax Network (GSTN), whether ITC needs to be claimed as per 2A or 2B.
“Many clients are filing their GSTR 1 after 12th of the months which gets reflected in 2A but not in 2B which shows difference in ITC with auto populated data,” he added.
The GSTN responded that it was a policy-related issue and has been forwarded to the Government.
“Input tax credit is required to be availed based on details available in FORM GSTR-2B, which is a static ITC statement generated for each month,” the Board tweeted.
The text of tweet is given below:
It may be noted here that Form GSTR-2B is a static statement and is generated each month by 14th of next month. Thus tax payers should avail ITC in respect of eligible credit reflected in GSTR-2B plus 5% of such eligible credits in case some invoices are not reflected in GSTR-2B , as per Rule 36(4) of the CGST Rules,2017.
It is pertinent to mention here that auto-population of system computed details in Form GSTR-3B, has been enabled on the GST portal for taxpayers (filing their Form GSTR-1 on monthly basis), from November 2020 Tax Period onwards. The same will be done based on the following:
- Liabilities in tables-3.1 & 3.2 of Form GSTR-3B (except Table-3.1 (d) pertaining to inward supplies liable to reverse charge), are computed by the system on the basis of details of outward supplies as filed in Form GSTR-1 for the tax period
- Input Tax Credit (ITC) details and details of inward supplies liable to reverse charge, to be reported in Tables-4 and 3.1 (d) respectively, are computed as per system generated Form GSTR-2B for the tax period
Values are auto-populated in GSTR-3B for the assistance of taxpayers. However, taxpayers have to ensure the correctness of the values being reported and filed in GSTR-3B in all respects. Consequently, the auto-populated values can be edited by the taxpayers, if required. The system will prompt the taxpayers with an alert in cases where the variance of the edited values from the auto-populated values is higher than a particular threshold. However, the taxpayers may continue their filing with the edited values, and system will not restrict the same. However as discussed earlier the tax payers should ensure to follow Rule 36(4) of the CGST Rules, 2017, while availing the ITC.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
