GST ITC in 3B as per bills but not reflecting in 2A

[Balakrishnan Ramalingam]

Dear sirs,

My client have received notice demanding ITC excess claim in 3B vis a vis 2A. Claim of ITC in 3B is genuine based on original invoices from vendors. Some other dealers in past receiving such notices just represented that they have valid bills and dept accepted. Now it seems dept. refusing to accept and demanding huge amounts of such differences between 3B and 2A.

What is the actual provisions as per GST Law to claim ITC. Please support your advises with circulars, notifications, press release etc., to represent before the Dept.

Thanks

R.Balakrishnan FCA

AI Summary

Client Challenges Excess ITC Claim in GST Due to Vendor Errors; Advocates Stress Vendor Compliance and Reconciliation A client received a notice for claiming excess Input Tax Credit (ITC) in GST Form 3B compared to Form 2A. The ITC claim is based on original invoices, but discrepancies arise when vendors fail to update their GSTR 1, affecting 2A. Contributors suggest ensuring vendors update their GSTR 1 and argue that ITC should not be denied due to vendor errors. They highlight the burden of proof lies with the claimant, and suggest resolving mismatches by reconciling figures and ensuring no revenue loss. Case laws and procedural lapses might offer some defense, but rectification is crucial.