CLAIM OF INPUT TAX CREDIT- GST RETURNS FILED BELATEDLY BY SUPPLIER

[ANIL KUMAR]

ITC was claimed by M/s. PNT for the purchases made in the month of March 2020 and however M/s. BIL the suppliers in the instance, did not filed their GSTR-3B and GSTR-1 returns belatedly in April 2021. These purchase invoices did not auto-populate in the GSTR-8A table of the GSTR-9 filed by M/s. PNT. Certificate is obtained from M/s. BIL confirming the payment of all due taxes and copies of filed returns GSTR-3B and GSTR-1 relating to all the said invoices to M/s. PNT are provided for evidence of compliance. However, the GST department is insisting reversal of the ITC related to these purchase invoices. M/s. PNT is opposing the same, since the amendment of Section 41(2) for reversal of input credit was made with effect from 1.10.2022 and not applicable to the instant transactions relating to March 2020. Also M/s. PNT is putting forward the Circular No. 183/193 whereby ITC can be allowed based on the total ITC claimed with respect to the Total ITC received as per GSTR-2A and the Circular No. 193 is applicable to the year 2019-20. All conditions as to receipt of goods, payment to supplier within 180 days are fulfilled. seeking comments on the approach to the issue.

AI Summary

Supplier's Delay in Filing Can't Penalize M/s. PNT for ITC Reversal; Section 41(2) and Circular No. 193 Cited. M/s. PNT claimed Input Tax Credit (ITC) for purchases in March 2020, but their supplier, M/s. BIL, filed GSTR-3B and GSTR-1 returns late in April 2021. Consequently, these invoices did not appear in M/s. PNT's GSTR-8A table of GSTR-9. Despite obtaining confirmation from M/s. BIL about tax payments, the GST department demands ITC reversal. M/s. PNT argues against this, citing Section 41(2) amendments effective from October 2022 and Circular No. 193, which allows ITC based on GSTR-2A for 2019-20. Forum participants support M/s. PNT, emphasizing the supplier's delay should not penalize them.