Section 16(2)(c)

[Rajesh Kumar]

Dear Expert,

A supplier of service is paying GST through GSTR-3B as half (approx.) of the liability declared in GSTR-1. Therefore, there is mismatch between GSTR-3B and GSTR-1.

Now. As per section 16(2)(c) which stipulates as under:-

c) subject to the provisions of section 41section 41 or section 43A, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply;

Now, Whether the ITC is not available to the receipients of services ?

At what extent they are required to reverse ITC I.e. half ( proportionate to the unpaid duty liability) or full ITC which was availed ?

AI Summary

Clarification Sought on ITC Reversal Under Section 16(2)(c) Due to GST Discrepancy in GSTR-1 and GSTR-3B A supplier is facing a discrepancy between the Goods and Services Tax (GST) payments declared in GSTR-3B and GSTR-1, with only half of the liability paid through GSTR-3B. The query seeks clarification under Section 16(2)(c) regarding the availability of Input Tax Credit (ITC) for service recipients and whether ITC should be reversed fully or proportionately to the unpaid tax liability. The response indicates that this issue is already under discussion in another forum thread, suggesting participants continue the conversation there to avoid redundancy.