ITC Claimed Bu Supplier Has showed In Annual Return Only

[NILESH PITALE]

Dear Expert

In One of Our Case of Fy 19.20 , We have Claimed Pending ITC of F Y 18.19 in the Return 3B of Sept 19, Our Supplier Did Not Reported Sales Bills in GSTR-1 & 3B of F Y 18.19 but Showed the Bills Turnover in Annual Returns of F y 18.19 and Paid the Taxes( Only) in 3B of Sept 19 that means Supplier Did Not showed Taxable value but showed Taxes only in 3B.

In such case can GST Officer Allowed the ITC, Please guide.

[Raam Srinivasan Swaminathan Kalpathi]

Please obtain a certificate from the supplier as provided in Circular 183 dt. 27-12-22.  ITC in your case cannot be denied by dept.

[Shilpi Jain]

Get the declaration or certificate from supplier and show to the officer who should allow the credit.

[KALLESHAMURTHY MURTHY K.N.]

Sir, 

As per the query, the tax was paid within the time frame and reflected in the Annual Return. So there is no reason for denial of ITC availed. It needs to explain the AA at the time of verification and or personal hearing in case of observation made in the notice.

AI Summary

Input Tax Credit: obtain supplier certificate and reconcile annual returns to substantiate credit when periodic returns omitted taxable value. If a recipient claims Input Tax Credit based on tax paid by the supplier and the supplier's Annual Return and 3B reflect turnover and tax paid despite earlier omission of taxable value in periodic returns, credit should not be denied solely for that omission. The recipient must obtain and produce a supplier certificate/declaration (per Circular 183 dt. 27-12-22) and explain the reconciliation at verification or personal hearing to substantiate the ITC.