GST UPDATE ON COMPARISON OF CREDIT WITH GSTR 2A- PART 4

While continuing this series of updates in relation to complexities in disclosure requirements of annual return, this update discusses the reconciliation portion of credit availed in GSTR 3B with GSTR 2A. Table 8A in the annual return relates to comparison of ITC availed by the assesee in GSTR 3B with the credit available as per the invoices uploaded by the suppliers in GSTR 1, duly reflected in GSTR 2A.
Clause D of SI. No. 8 is the difference between credit uploaded by the suppliers as captured in GSTR 2A vis-à-vis credit availed by the tax payers on their own account in GSTR 3B. However, it is pertinent to note that according to the format, the difference can only be positive value. As Table 8 primarily seeks to bifurcate the difference between the GSTR 2A and GSTR 3B credit availed into –
• ITC available but not availed(Clause E of SI. No. 8)
• ITC available but ineligible(Clause F of SI. No. 9)
• Total ITC which has lapsed
The clause ought to generally declare a positive value as the format asks for further classifying the positive difference derived into availed and ineligible credit.
However, this clause may derive a negative value due to the fact that ITC has been availed by the recipient but the supplier has failed to upload the invoices in his GSTR 1 leading to absence of credit in GSTR 2A. The probable reasons for negative difference can be excess availment of credit on same invoice, supplier not filed the GSTR 1, availment of ineligible credit etc.
A negative value would be point of concern as the department may ask for the reversal of excess credit availed while matching with the GSTR 2A. On the other part, a positive figure would not be a cause of concern. But it will only require the assessee to take further action as to bifurcate between credit available but not availed and credit available but ineligible.
However, it is just a presumption that the difference ideally should be a positive value. A clear picture would be reflected only when the return would be available on the online portal by the Government.

This is solely for the educational purpose.
You can reach us at www.capradeepjain.com, at our facebook page on
https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21

Comments

GST UPDATE ON COMPARISON OF CREDIT WITH GSTR 2A- PART 4

Post a Comment

Query