Non reversal of excess credit taken in 3B vis 2A

[RAKESH SHARMA]

Sir

Recently GST audit for 2017-18 was conducted by the department and they have raised a demand of approx 10 lac under CGST and SGST due to excess credit availed in 3B vis-a-vis 2A.

We reconciled the same and found in 90% case, we have eligible invoices with us but the supplier has not filed its return to include these invoices with the result differences arose.

In 10% cases, we found that we have claimed ITC merely on presumption bases on bank charges/process charges of banks on which GST is generally charged by the bank but the bank has not filed returns to include the above transactions.

What is the remedy for us. Can we fight with the department to claim ITC on which we have eligible invoices as per GST law to the extent of 90% amount?

Please suggest

AI Summary

GST Audit Dispute: Claiming ITC Valid if Conditions Under Section 16 CGST Act Met, Despite Supplier Defaults A GST audit for 2017-18 led to a demand of approximately 10 lakh under CGST and SGST due to excess credit claimed in GSTR-3B compared to GSTR-2A. The discrepancy arose because 90% of the invoices were eligible but not filed by suppliers, while 10% were claimed presumptively on bank charges not filed by banks. Responses suggest that ITC can be claimed if conditions under Section 16 of the CGST Act are met, and restrictions based on supplier invoice uploads were only applicable post-09.10.2019. Legal precedents support claiming ITC despite supplier defaults.