GST INPUT IN 3B

[DK AGGARWAL]

Respected Sir/Madam

There is a news that GST Registration to be cancelled if ITC taken in GSTR-3B varies more than 10% with GSTR 2B.

Please advise if it’s on monthly basis or it will be considered on total input as on 31st March.

Our import input is not shown in 2B whereas it’s available in 2A. Can we claim input in 3B as per 2A.We have raised tickets of each entry of BE also few days back in Nov21 and Dec21, but it is not shown in 2B.

We are afraid if news above is correct and if we claim Input on the basis of 2A, we may be in trouble.

There is a news that GST Registration to be cancelled if ITC taken in GSTR 3B varies more than 10% with GSTR 2B.

Please advise if it’s on monthly basis or it will be considered on total input as on 31st March.

Our import input is not shown in 2B whereas it’s available in 2A. Can we claim input in 3B as per 2A.We have raised tickets of each entry of BE also few days back in Nov21 and Dec21, but it is not shown/reflected in 2B.

We are afraid if news above is correct and if we claim Input on the basis of 2A, we may be in trouble.

Kindly guide asap

D K Aggarwal

[Punit Agarwal]

Hi,

Rule 36(4) covers Invoices or Debit notes which are not uploaded by the Supplier. It doesn't cover Goods imported. So IMHO, I would recommend taking input as per Books in relation to Input arising out of import.

[Shilpi Jain]

Yes. ITC appearing in 2B is not legally required for import of goods as perm 16(2)(aa). Also difference between 2B and 3B could lead to suspension of registration as per rule 21/21A. However in my view this should be done in extreme cases of fraud, bogus billing or entities, etc only.

So in case of any such discrepancy make an intimation to the department.

We will have to wait and see what the department will finally do or be instructed to do.

[Ganeshan Kalyani]

Yes, the mechanism to deal with the difference in 3B and 2B shall be announced by Govt. The opportunity of being heard will be given by issuing notice to the taxpayer. If satisfactory reply is given the notice may be withdrawn else the step to cancel the registration as prescribed in the law may be initiated. As stated by Ms. Shilpi Ji the strict action is for the defaulter and in the process all taxpayers is required to face notices.

AI Summary

Concerns Raised Over GST Registration Cancellation Due to ITC Discrepancies; Rule 36(4) Does Not Apply to Imports (4) A participant in a discussion forum expressed concern about potential cancellation of GST registration if the Input Tax Credit (ITC) claimed in GSTR-3B exceeds that in GSTR-2B by more than 10%. They noted discrepancies in import inputs not appearing in GSTR-2B but present in GSTR-2A and sought advice on whether to claim based on GSTR-2A. Respondents clarified that Rule 36(4) does not apply to imported goods and advised claiming input based on books. They highlighted that discrepancies could lead to registration suspension, primarily in cases of fraud, and emphasized the importance of notifying the department about such issues.