ineligible ITC availed - how to show in GSTR 9

[S Rajendran]

Sir

Query No: 1

I have purchased services from Spices Board, Kerala ( Interstate purchase ) on 04.02.2019 Taxable value ₹ 10000 IGST 18% ₹ 1800.

I have shown my purchases as below:

As per Books Taxable value GST 18% IGST CGST SGST

04.02.2019 10000 1800 0 0

But the supplier Spices Board, uploaded in the GST portal as per GSTR 2A

As per GSTR-2A Taxable value GST 18% IGST CGST SGST

10000 0 900 900

I have availed the said ITC in GSTR 3B as per my books with IGST ₹ 1800.

I request you to advise me how to fix this issue and where to show this amount in GSTR 9.

Query No: 2

I have purchased services from AVG Logistics ( local purchase ) on 22.10.2018

Taxable value ₹ 17528 GST 18% IGST – nil CGST ₹ 1577.52 SGST ₹ 1577.52.

But the Supplier AVG Logistics is not a registered dealer.

I have shown my purchases as below:

As per Books Taxable value GST 18% IGST CGST SGST

22.10.2018 15728 0 1577.22 1577.22

On verification, as the supplier AVG Logistics has not uploaded his invoice in the GST portal GSTR 2A .

As per GSTR 2A Taxable value GST 18% IGST CGST SGST

00 0 00 00 00

I have availed the said ITC in GSTR 3B as per my books with CGST ₹ 1577.22 and SGST ₹ 1577.22 .

I request you to advise me how to fix this issue and where to show this amount in GSTR 9 and how to pay this amount with interest in GSTR 9.

Query No: 3

I have received packing materials from DFS Agri Foods Pvt Ltd ( interstate ) via Delivery chalan No. 1 dated 05.10.2018 Taxable value ₹ 337725 IGST 18% 60790.50 CGST nil SGST nil .( this is not a purchase )

I have wrongly shown it as my purchases as below:

As per Books Taxable value GST 18% IGST CGST SGST

05.10.2018 337725 60790.50 0 0

On verification, as the supplier has not uploaded his invoice in the GST portal GSTR 2A .

So I reversed the said IGST ₹ 60790.50 in the month of March 2019 in Table 4. Eligible ITC

( B) vide GSTR 3B.

As per GSTR 3B Taxable value GST 18% IGST CGST SGST

4( B ) ITC reversed 00 00 60790.50 00 00

I request you to advise me how to fix this issue and where to show this ITC reversed amount in GSTR 9.

Thanking you

Yours faithfully

S Rajendran

[Kashish Gupta]

Dear Sir

Reply to query 1:

1. Correct the head wise availment of credits in return to be filed for current month. Reverse the credit from IGST and avail it under head "CGST" and "SGST".
2. In GSTR-9 for FY 2018-19, the amount will auto-populate in table 8A while the credit claimed is under other heads. So, the amount will appear as a difference. Let it appear like this only and as a supporting clarification, the invoice wise details may be uploaded along with Form GSTR-9C.

[Kashish Gupta]

Reply to Query No. 2

1. Since the invoice is not appearing in Form GSTR-2A because supplier has not taken registeration under GST law, he is forgely recovering the money in the name of tax.
2. Since the credit was claimed during the year, this amount will appear as difference in Form GSTR-9 and you may pay the same by way of filing Form DRC-03.

AI Summary

Ineligible input tax credit: correct headwise availment; reconciliation differences appear in annual return and require recovery payment. Mismatched headwise availment and credits for purchases from unregistered suppliers create ineligible input tax credit that must be corrected in the current-month return by reversing credit from the incorrect head and re-availing under correct heads; such differences will auto-populate and appear as reconciliation variances in the annual return, which should be supported by invoice-level details. Credits claimed from unregistered suppliers will also appear as differences and should be discharged through the applicable recovery procedure; reversals already made in monthly returns must be reflected in the annual return reconciliation.