Auto populated ITC in Annual Return colmn 8A

[Sudhir Kumar]

One of my client has been served a notice with the issue of excess availment of Input Tax Credit for the period 2018-19. The GSTR-2A of the tax-payer reflecting ITC of Rs.9407542/- while the 8A column of annual return GSTR-9 reflect an ITC of Rs. 10066878/-. The department has taken the ITC available in 2A for calculating differences in ITC availed and ITC available. While considering the ITC in 8A of GSTR-9 there is no differences found. How to reply to the show cause notice issued?

[Shilpi Jain]

Bring out this fact and mention that there is no excess availment.

Additionally, bring out grounds regarding GSTR-2A not relevant for availing of credit for 2018-19, the rule itself was existent from Oct '19. 

[KASTURI SETHI]

cnt has  to justify his  correct availment of ITC with the books of account maintained. The books of account are a statutory records and hence the department cannot deny ITC.

You can take shelter of the following High Court judgement. The period involved is prior to the introduction of GSTR-2A

MAKHAN LAL SARKAR Versus ASSISTANT COMMISSIONER OF REVENUE, STATE TAX - 2023 (9) TMI 1357 - CALCUTTA HIGH COURT

AI Summary

Discrepancy in 2018-19 ITC Claim: GSTR-2A Vs. GSTR-9; Justify with Statutory Books and Court Judgment A client received a notice regarding excess Input Tax Credit (ITC) claimed for 2018-19, with a discrepancy between the GSTR-2A and GSTR-9 forms. The GSTR-2A shows ITC of Rs. 9,407,542, while the GSTR-9 shows Rs. 10,066,878. Respondents advised highlighting that there was no excess availment and that GSTR-2A was not applicable for the 2018-19 period. It was suggested to justify the ITC claimed with statutory books of account and reference a relevant High Court judgment, as the rule involving GSTR-2A was introduced after the period in question.