Regarding Exporter refund Under GST

[Jasbir Uppal]

Dear professionals,

If the supplier has not uploaded the invoices in GSTR-1 and the credit is not populated in the GSTR-2A of the Buyer. But the Buyer claimed ITC in GSTR 3B on the purchase invoices without getting credit in GSTR-2A. In case of exporter refund how to curtail the refund with the amount reflected in GSTR 2A is less than ITC claimed in GSTR 3B. due to following reasons

If the registered persons having aggregate turnover of up to ₹ 1.5 crore in the financial year or the current financial year opting to file FORM GSTR-1 on quarterly basis.

Rule 37(3)CGST Rules A registered person, who has availed of input tax credit on any inward supply of goods or services not paid the tax within the period of one hundred and eighty days from the date of the issue of the invoice:

In the light of The CGST department has issued Circular No.135/05/2020 dated 31st March, 2020 applicants to upload the details of invoices reflecting in their FORM GSTR-2A. is justifiable to curtail the refund.

Regards

J S Uppal

[Venkataprasad Pasupuleti]

Firstly there is no active statutory provision requiring the ITC matching. The rule 36(4) can be challenged on this lacuna.

Secondly, Rule 36(4) also gives adhoc extra 10% ITC than the reflected in GSTR -2A & does not require invoice level matching whereas latest circular refered by you do not consider this and simply says that refund of ITC on invoices not reflected in GSTR-2A would not be given. Hence the clarification is not in accordance with the law and non EST in law.

Also note that the matching requirement is relevant for the ITC refund for the period October 2019 and not relevant for the period prior to that.

[Jasbir Uppal]

Dear :Venkataprasad Pasupuleti,

Thanks for your reply but my query is still prevailing because the department is stubborn on the Circular No 135/05/2020 dated 31st March, 2020 in which ITC that will allowed only of the invoices which are been reflected in GSTR 2A with regard to exporters.

Prior to this notification the situation that was prevailing the difference in GSTR 2A and ITC to be claimed was allowed after the copies of unmatched invoices were provided.

Pl give your valuable feedback.

Regards

J S Uppal

AI Summary

Input tax credit matching limits exporter refund eligibility where invoices do not appear in GSTR 2A, curtailing refunds. Restrictions on export refund eligibility arise where claimed Input Tax Credit in GSTR 3B exceeds the credit reflected in GSTR 2A because suppliers did not upload invoices. Administrative guidance conditions refunds on GSTR 2A visibility, while existing procedural rules provide an ad hoc ITC allowance and do not mandate invoice level matching for all periods, creating conflict over refund curtailment unless reconciliation mechanisms are met.