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 If satisfactory reply is given the notice may be withdrawn else the step to cancel the registration as prescribed in the law may be initiated.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

Input tax credit reconciliation: import ITC may be claimed in returns despite 2B non reflection; discrepancies can trigger notices. Rule 36(4) excludes import of goods from its scope; imports need not appear in GSTR 2B to claim ITC under section 16(2)(aa). Import-related ITC may be claimed in GSTR 3B based on books and import documents, while material differences between GSTR 3B and GSTR 2B can trigger suspension or cancellation proceedings under rule 21/21A subject to notice and an opportunity to be heard; taxpayers should document discrepancies, raise supplier/system tickets, and notify the department.