CLARIFICATION TO DEAL WITH DIFFERENCE IN INPUT TAX CREDIT (ITC) AVAILED

The CBIC has issued a clarification on how to deal with the difference in Input Tax Credit (ITC) availed by taxpayers in their GSTR-3B returns and the ITC available as per GSTR-2A.

The clarification states that taxpayers can claim the ITC available as per GSTR-2A, even if it is higher than the ITC availed in GSTR-3B.

However, if the ITC available as per GSTR-2A is lower than the ITC availed in GSTR-3B, taxpayers cannot claim the difference as ITC.

Taxpayers must reconcile the ITC availed in GSTR-3B with the ITC available as per GSTR-2A on a monthly basis.

If there is any difference between the two, taxpayers must take corrective action in the next month's return.

The clarification also states that taxpayers must ensure that the suppliers from whom they have received goods or services have filed their GSTR-1 and GSTR-3B returns.

If the suppliers have not filed their returns, taxpayers cannot claim the ITC on the goods or services received from them.