Input Tax Credit 2A & 2B

[VIGNESH]

Sir while filing GSTR 3B, purchase bill are not reflecting in GSTR 2B but reflecting in 2A (returns are filed late by vendor) can i claim ITC as per 2A ,will the department raise notice for delay in reflecting and ask to pay interest

[VIGNESH]

my client had filed returns under IFFand unfortunately he had good sales and he was not able to upload invoices more than 50.00 lakhs in his returns , what to be done by the vendors who have purchased from my client, my client has paid the full tax and shown the bills in the subsequent month whithout changing the date of bill or value,will there be any consequences, how to overcome!

[Ganeshan Kalyani]

In my view, you can take input tax credit based on 2A. 2A being a dynamic report , to have a report which can constitute a particular month's ITC 2B was introduced. Though department may consider 2B to compare your ITC , you can explain you claim based on 2A.

Also, buyer should not be deprived of ITC because of external factors like technical problem leading to delay in filing of return or delay is filing by counter party for which buyer is not responsible.

[KASTURI SETHI]

After in agreement with Sh.Ganeshan Kalyani Ji, I further add as follows :

ITC cannot be denied if you conform to the following conditions/parameters/basic requirements :-

1. Tax paid invoice in original .

2. Physically receipt of goods or services.

3. Used the said goods or services in the course of business or furtherance of business (taxable not exempted).

4. Full payment to the supplier within stipulated period.

5. Proper entry of the goods/services and payment made in the books of accounts.

6. Availment of ITC is not hit by time bar limit under Sections 16 and 18 of CGST Act

7. Inputs/capital goods/services are not hit by Section 17 (5) of CGST Act.

If you fulfill the above conditions, technical lapses committed unknowingly on common portal cannot be a hurdle in availing ITC. There are case laws of various courts on this issue in the assessee's favour. Everybody wants to avoid unnecessary litigation. Everybody wants to avoid interest and penalty. The compliance on common portal is also legal requirement which cannot be ignored. We cannot forget that the basis of compliance on common portal is the fulfillment of above seven conditions which are primary requirements..

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

AI Summary

Input Tax Credit entitlement may be claimed when invoices appear in GSTR 2A despite GSTR 2B mismatch, subject to statutory conditions. A buyer may claim input tax credit based on invoices reflected in GSTR 2A despite a GSTR 2B mismatch if the buyer satisfies substantive entitlement conditions: original tax paid invoice, physical receipt of goods or services, use in business (not exempt), payment to supplier within the stipulated period, proper accounting entries, absence of time bar or statutory disallowance, and non application of blocked credit rules. Portal or supplier filing delays can be explained, though portal compliance should be regularised to avoid scrutiny, interest and penalty.