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?

AI Summary

Taxpayer's ITC Denied Due to Timing; Section 16(2)(c) Cited, Litigation Suggested for Relief An assessee availed Input Tax Credit (ITC) from December 2019 to March 2020, which did not reflect in GSTR-2A at the time of filing GSTR-3B. It appeared later between May and August 2020 due to delayed filing by the supplier. The department disallowed the credit under Section 16(2)(c) of the CGST Act, 2017, and required reversal since the ITC should have been taken in the next fiscal year, 2020-21. Replies suggest that litigation is the only recourse, with potential relief through court decisions, such as a relevant Kerala High Court ruling.