ITC From Input Service Distributor

[ABHISHEK Kumar]

I have received ITC from Input Service distributor in July 2020 which is appearing in GSTR-2A & GSTR-2B of July 2020.

The input received from ISD is not appearing in table 8 of GSTR-9 (Annual Return) of FY 2020-21 due to which there is difference in table 8A and table 8B (ITC claimed and ITC availed). My query is :

1. Whether ITC received from ISD appear in table 8 of annual return or not ?

[KASTURI SETHI]

It should appear in Column 8 A and B, it being auto populated. You should lodge complain with Grievance Redressal Cell.

[ABHISHEK Kumar]

Thank You Sir.

[Shilpi Jain]

Also note that if the provisions of law are fulfilled for you to avail the credit, then amount not appearing in the said table may just be another technical issue. Further, it had been mentioned earlier in one of the press-releases that the table 8is just for information purposes like an MIS and should not be required to reverse credit.

[KASTURI SETHI]

Yes. Reversal is not required but procedural/technical lapse has to be avoided. In order to avoid unnecessary litigation, matter should be brought to the notice of Grievance Redressal Cell. The problem will be solved without any harm to the assessee. It appears to be technical snag in the functioning of software.

AI Summary

Input tax credit from Input Service Distributor may be absent from annual return table due to technical issues; lodge grievance. Input tax credit from an Input Service Distributor that appears in GSTR-2A/2B should be auto-populated into Table 8 (columns 8A and 8B) of the annual return; absence from that table is typically a technical or procedural software issue. If statutory conditions for availing the credit are met, the taxpayer need not reverse the credit solely because it is not shown in Table 8; the recommended remedy is to bring the matter to the Grievance Redressal Cell for correction.