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

Input Tax Credit entitlement: rely on statutory books to counter notices based on GSTR 2A discrepancies. When the Annual Return column 8A figures are relied upon there is no excess availment of Input Tax Credit; the taxpayer should demonstrate correct availment by producing statutory books of account and documentary evidence. For periods before the procedural prominence given to GSTR 2A, GSTR 2A is not determinative of entitlement, and reliance on it alone to deny ITC is inappropriate. The reply should stress the Annual Return position, furnish books of account, and note the inapplicability of later procedural rules, while citing supporting precedent.