ITC Eligibility and Classification in GSTR 3B

[Pradeep Singhi]

In case of Bulider, Credit is reflected in GSTR 2A after occupancy certificate.

1) Whether ITC is eligible for the invoices received after occupancy certificate?

2) If we don't want to take the ITC than how credit reflected in GSTR 2A to be shown in GSTR 3B?

[Shilpi Jain]

It has to be seen whether the procurement has happened after OC or the entry in 2A has appeared after the OC date.

The date of entry in 2A is not relevant if the procurement has happened and the invoice is dated prior to OC. In such case, the ITC will have to be proportioned and availed to the extent of the carpet area of the units sold on which GST is liable.

If the procurement is made after OC, assuming OC is received after 01.04.2019, it would advisable to reverse the credit proportionately as discussed above.

[Mr Patel]

No input credit is allowed if project is started after 01/04/2019

If you have excised old scheme option then you can utilize the input credit according above explanation.

[Pradeep Singhi]

In GSTR-3B, if we don't want to take the ITC than how it is to be reflected in ITC section.

Whether,

1. It is to be shown in All other ITC (Table 4(A)(5)) & then to be reversed in ITC reversed-Others (Table 4(B)(2)) ? OR

2. It is to be shown as ineligible ITC as per section 17(5)(Table 4(D)(1)) ? OR

3. It is to be shown in All other ITC (Table 4(A)(5)) & then to be reversed in other ITC reversed (Table 4(B)(2)) & also to be shown as ineligible ITC as per section 17(5)(Table 4(D)(1)) ?

[Ganeshan Kalyani]

Point no.1 to be followed.

AI Summary

Input tax credit eligibility requires proportionate reversal and specific GSTR-3B reporting when credit appears after occupancy certificate. ITC eligibility depends on whether procurement and invoice date are before or after the occupancy certificate: invoices dated before OC but appearing after in GSTR 2A require apportionment and availing only for carpet area of taxable units; procurements after OC require proportionate reversal. Where ITC shown in GSTR 2A is not availed, report it in All other ITC (Table 4(A)(5)) and reverse it in ITC Reversed - Others (Table 4(B)(2)). Transitional scheme options may affect availability.