DELAY IN REFLECTING IN GSTR-2A (FY 2019-20)

[NAMAN DOKANIA]

An assessee availed ITC in Dec 2019 to March 2020, whcih was not reflecting in GSTR-2A at the time of filing of GSTR-3B, but post filing of the same i.e in the month of May to August 2020, the same was appearing in GSTR-2A of FY 2019-20, i.e. the GSTR-1 & GSTR-3B was filed late by supplier. Department disallowed the credit as per Section 16(2)(c) of the CGST Act, 2017.

I asked the department to take interest for early availment of credit, but they are of the apprehension that ITC was not eligible to be taken in FY 2019-20, hence you are required to reverse it, and you were required to taken ITC in next FY i.e. 2020-21, which now the time has lapsed.

What is the recourse to it?

[Shilpi Jain]

The conditions mentioned in section 16 need not be fulfilled before taking credit. 

The requirement of payment of tax by supplier, the requirement of filling returns, etc. 

Hence a view can be taken that all conditions need not be such that they have to be fulfilled before taking credit.

Though this is a matter which will finally be settled in courts considering the way the department is functioning in today's Times.

[KASTURI SETHI]

In such a situation, SCN is certain. However, relief (justice)  is possible through litigation only. There is no other way-out. By the time SCN is adjudicated, you may come by some case law in your favour. 

[Shilpi Jain]

Pls have a look at the decision of Kerala HC in the case of M. Trade Links [2024 (6) TMI 288 - KERALA HIGH COURT] where time limit up to 30th Nov is applicable retrospectively from 2017-18. See if this can be of any use in your case.

AI Summary

Input tax credit timing: delayed supplier filings can trigger disallowance, requiring litigation or reliance on retrospective time-limit rulings. Delay in reflection of inward supplies in GSTR-2A due to late supplier filing may lead to denial of claimed input tax credit and directions to reverse or claim in a subsequent year; departmental practice often issues show cause notices, so litigation relying on retrospective time limit case law may be the practical recourse to contest disallowance where supplier delay caused non reflection.