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

[Mahadev R]

It is not mandatory to have entries in GSTR-2A to claim ITC. If you have fullfilled all conditions of Section 16 of CGST Act, ITC can be claimed. In case of bank charges also, proper invoice / challan having basic contents such as the amount of tax charged, description of goods or services, total value of supply of goods or services or both, GSTIN of the supplier and recipient
and place of supply in case of inter-State supply should be there to claim ITC.

[KASTURI SETHI]

Bharti Telemedia Ltd. Vs. Union Of India & Ors. (Delhi High Court)

Input Tax credit (GST) Can not be denied to recipient for default on part of the supplier- Delhi High Court issued notice to UNION OF INDIA. Date of judgement 29.5.19. Next date of person hearing was 18.9.19.

[Ganeshan Kalyani]

Yes, you can justify your claim of ITC producing invoice copy, entry in your books, payment made etc.

[Rachit Agarwal]

Restriction on the availment of the credit of input based on the Invoices uploaded by the supplier has been imposed vide Rule 36(4) of CGST Rules 2017 Inserted vide Notification No. 49/2019 – Central Tax dated 09-10-2019.

The same could not be made applicable retrospective.

In view of the same, restriction on availing credit of input tax could not be imposed for not uploading the invoices by the supplier resulting in non reflection of Invoices in GSTR 2A prior to 09.10.2019

AI Summary

Input tax credit entitlement depends on meeting ITC eligibility criteria, not solely on invoice reflection in supplier returns. Entitlement to input tax credit depends on satisfying statutory eligibility criteria-possession of proper invoices, receipt of supplies, tax charged and requisite documentary and payment evidence-and is not solely contingent on invoice reflection in suppliers' returns; restrictions linked to supplier uploading of invoices operate prospectively and cannot be applied retrospectively to deny prior claims.