Matching ITC with GSTR-2B even though GSTR-3B lately

[Naviin Guptaa]

Dear All,

My client is filing GSTR-3B after 6 months of due date along with interest and late fee, just wanted to clarify whether in this case also we need to match ITC with the data available in 2B of that month or we can go head and claim as ITC based on 2A (reflecting in 2B of that month and later months)?

In my opinion, as we have paid the taxes along interest and late fee, tax payer cannot be penalized for the act of supplier late filing.

Thanks in advance.

[KASTURI SETHI]

Sh.Navin Gupta Ji,

Excellent as well as novel idea. I agree with your rationale in toto but an assessee is statutorily bound to follow time limitations.

The constitutional validity has to be challenged and if succeeded, it will pave the way for all other assessees also . First of all, make a representation to the Chairperson, GST Council on this issue explaining above rationale.

When interest and late fee both have gone into Govt's kitty, why the assessee should suffer loss of ITC just because of late filing of return, especially, in the event of tax-paid character is present, invoice is genuine, usage is genuine and not hit by Section 17(5) of CGST Act.

Must try. It will consume a lot of time but relief is expected. If you do not fight for your substantive right now, you are defeated today itself. Why to accept defeat without fighting for your rights ?

[Naviin Guptaa]

Dear Kasturi Ji,

I always follow you comments/advises, appreciate your contribution.

Thank you so much for your comment and guidance to take this forward.

[KASTURI SETHI]

Dear Navin Gupta Ji,

What are correct spellings of your name ? Navin Gupta or Naviin Guptaa ?

It is nice to know that you read and like my views.

I am of the view that one should always be creative and should not follow 'beaten path'.

I mean to say 'newness' 'off-beat' and 'original ideas' while interpreting any law. Not to follow any case law and a legend blindly.

[Naviin Guptaa]

Dear Kasturi Ji,

My name is Naviin Guptaa (formally Naveen Kumar Gupta).

Sir, totally agreed sir. I appreciate law maker for making law but sometime due to general business scenrio it fails to meet the intension of the law maker.

I appreciate if you help me to take this forward. Will drop you an email for the same.

[ABHISHEK TRIPATHI]

Kasturi Sir is a well of knowledge

[SANJEEV JADHAV]

Dear Kasturi Sir,

Your suggestions and guides are always helpful and fruitful to us, which brings confidence in our mind. Really it is a road map for us to proceed further.

[KASTURI SETHI]

Sh.Abhishek Tripathi Ji and Sh.Sanjiv Jadhav Ji

Dear Sirs, I am thankful to both of you for your inspirational, motivational and morale boosting words expressed for me.

Regards,

[Shilpi Jain]

You could also go through the article at link below in this regard

https://www.taxtmi.com/article/detailed?id=9746

[Shilpi Jain]

Whether to take credit as per 2 OR 2B, You can refer to this article

https://www.taxtmi.com/article/detailed?id=9732

[KASTURI SETHI]

There is a case law of Bombay High Court in the case of Rashmikant Kundalia & another Vs.UOI & other reported as 2015 (2) TMI 412 - BOMBAY HIGH COURT pertaining to Income Tax Act, 1961 (Section 234 E) which allows a deductor to file his TDS statement beyond the statutory prescribed time limit after making payment of prescribed fee, held that the late filing of TDS return/statements is regularised once the taxa payer pays the prescribed fees.

 

[Shilpi Jain]

Ideally if you go through the provision of rule 36(4), it states that credit cannot be availed if invoices not uploaded by supplier. So as long as at the time of availing credit the details are available in GSTR-2B credit should be eligible.

[Shilpi Jain]

If you patiently go through the 2 articles shared by me you could find more reasons why credit can be availed. The circulars issued by department are absurd w.r.t. compliance with rule 36(4).

I will not be surprised if the courts will quash these circulars

[Naviin Guptaa]

Dear Shila Ji, Kasturi Ji,

Thanks for your valuable feedback/suggestions.

AI Summary

Input Tax Credit entitlement depends on invoices reflected in GSTR-2B when claiming, despite supplier's late filing. Whether a recipient may claim input tax credit despite filing GSTR-3B late was debated; contributors argued that payment of tax with interest and late fee should not bar credit where supplier-uploaded invoice details appear in the recipient's automated statement. Practical guidance emphasised that credit eligibility depends on the presence of invoice details in the automated statement at the time of claim, compliance with rule based restrictions and genuineness of invoice and use, and that administrative or judicial challenge may be pursued against time bar limitations and inconsistent departmental circulars.