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

Input tax credit entitlement where recipient met claim time-limits despite supplier's belated return filing and reconciliations.
Dispute concerns entitlement to input tax credit claimed for March 2020 where supplier filed returns belatedly in April 2021. The recipient filed its own GSTR-3B timely and met receipt and payment conditions; supplier has certified tax payment and produced belated returns. The department seeks reversal citing return mismatches, while the recipient relies on the inapplicability of a later amendment and on circular guidance allowing reconciliation of claimed ITC against returns within prescribed tolerances.