Reversal of ITC as per GSTR 9

[Rajesh Kumar]

Sir/Madam

On going through the difference between GSTR-2A and GSTR-3B in GSTR-9, there is difference in negative which indicates that there was short ITC in 2A than claimed in 3B, however, today that difference is in positive I.e. ITC available in 2A is more than availed in 3B.

Now, was party to reverse the Excess ITC claimed as shown in GSTR-9 at the time of filing of R-9. If they did not do so, now they are required to reverse the same with interest thereon , however, the same is available today?

Department is insisting to reverse as per R-9 and stating that ITC was short as on Sept return filing date and available later is time barred as per Section 16(4). Is they right?

Second, ITC of 2018-19 availed between April to Sept of 2019-20 is required to minus from the calculation of ITC availed during 2019-20 as the same already calculated for 2018-19 as shown in R-9.

AI Summary

Debate on ITC Discrepancies: GSTR-2A vs. GSTR-3B, Section 16(4) Time Limits, and Justifying Credit Claims A discussion on a forum addresses discrepancies in Input Tax Credit (ITC) between GSTR-2A and GSTR-3B as reported in GSTR-9. The issue involves whether excess ITC claimed should be reversed, with the department insisting on reversal due to time constraints under Section 16(4). One response argues there is no legal requirement to reverse credit not appearing in GSTR-2A before 2022, while another highlights that GSTR-2A is merely a facilitation tool, not definitive for credit claims. The discussion emphasizes the need to justify discrepancies with supporting documents as per Section 16(4) requirements.