Input tax credit

[Bharat Cholleti]

Dear sir,

Applicant availed Input tax credit as per the invoices which is not reflected in 2A, Now received notice for payment of difference tax between 3B and 2A, applicant remitted the payments to supplier through cheques only. kindly support with case laws in this matter. Section 16 2(aa) is only effective from 01-01-2022 As per Finance Act 2021.

AI Summary

GST Returns Discrepancy: B2C vs. B2B Reporting Affects ITC Eligibility; Section 16(2)(aa) Invoice Matching Post-2022 An applicant faced a discrepancy between GST returns 2A and 3B for 2018-2022, as suppliers reported transactions as B2C instead of B2B, affecting Input Tax Credit (ITC) eligibility. Respondents advised obtaining a CA certificate confirming the error and referencing a Maharashtra circular on return scrutiny. They noted that Section 16(2)(aa) of the Finance Act 2021, effective from January 2022, requires invoice matching for ITC, which wasn't applicable before this date. A similar circular by Karnataka or central authorities wasn't identified, but such circulars are generally applicable across states.