DISALLOWANCE OF ITC

[NAMAN DOKANIA]

Sir/Madam,

Can department disallow ITC availed in GSTR-3B and appearing in GSTR-2A, but not available in books of account? Becuase section 16, doesnot lays any condition for availment of ITC, if the same is availble or not available in books of account(s).

Please enlighten us.

AI Summary

Input tax credit eligibility depends on recorded receipt and business use; return entries alone are insufficient to secure credit.
ITC entitlement depends on factual receipt and use for business and requires recording of the inward supply in the recipient's books; mere reflection in GSTR 2A/3B without accounting entries does not by itself support claimability, and omissions may require accounting correction or trigger reversal and interest consequences where payment conditions are unmet.