TaxTMI 
TaxTMI 
Ground-2: Excess Availment of Input Tax Credit under IGST Act (GSTR-2A vs. GSTR-3B)-3
X X X X Extracts X X X X
X X X X Extracts X X X X
....round-2: Excess Availment of Input Tax Credit under IGST Act (GSTR-2A vs. GSTR-3B)-3<br> Query (Issue) Started By: - Shambhavi Nayak Dated:- 21-3-2026 Last Reply Date:- 1-4-2026 Goods and Services Tax - GST<br>Got 9 Replies<br>GST<br>On Reliance on GSTR-2B vs. Statutory Restrictions: The Taxpayer's defence relying on Form GSTR-2B is factually and legally untenable for the period in dispute. Wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ile they contend that they relied on Form GSTR-2B, the verification reveals that their claim includes ineligible prior-period credits. Consequently, the Taxpayer has neither strictly adhered to GSTR-2B (for the current period data) nor have they furnished any month-wise reconciliation to demonstrate that the excess ITC was within the statutory tolerance limit of 5% prescribed under Rule 36(4) for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the period up to December 2021. In the absence of such reconciliation, the excess claim remains unsubstantiated under any provision of the law. b. Factual Error: A scrutiny of the GSTR-2B of April-2021 reveals that the GSTR-2B figures relied upon by the Taxpayer include ITC amounting to Rs. 4,65,418.49 which pertains to the previous financial year (2020-21). The Taxpayer has failed to provide a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny documentary evidence to substantiate the transition or eligibility of this prior period credit in the current year. c. Legal Position: For the majority of FY 2021-22 (up to 31.12.2021), the availment of ITC was governed by Rule 36(4) of the CGST Rules, 2017. This rule explicitly restricted ITC on missing invoices to a maximum of 5% of the eligible credit found in GSTR-2A. The Taxpayer cannot....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... bypass this statutory cap by selectively relying on GSTR-2B figures that contain ineligible prior-period data. d. Submission of Books vs GSTR-2A: Reply By KASTURI SETHI: The Reply: Sh.Nayak Ji. What is the purpose of this post ? Will you please specify ? Reply By Shambhavi Nayak: The Reply: Actually the query is of 7500 word bigger so couldn't post in a single query posted as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1,2,,& 3 Is there any option to attach pdf file or any email id so that i can in brief post the query. Reply By Sadanand Bulbule: The Reply: Query should be in one or two lines. Experts can undertand the intrinsic remedy. Reply By Shambhavi Nayak: The Reply: Query is during GST audit the officer has passed an order for ITC claim in GSTR 3B exceeding GSTR 2A auto populated figures for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the year 21-22. IGST excess Claimed for the extent of Rs. 217518. His point is upto December 2021 we couldn't avail more than 5% on Auto populated GSTR 2A We had excess amount in CGST and SGST. What stand we have to take while filling Appeal before JC Appeal Reply By Sadanand Bulbule: The Reply: It is a settled position of law through various High Courts that ITC cannot be den....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ied merely on the basis of mismatch with GSTR-2A without establishing ineligibility under Section 16 of the CGST Act, 2017 or without initiating action against the supplier. The impugned order, being based solely on such mismatch and that too on a tax head-wise comparison under Rule 36(4), is contrary to these settled principles. So you have enough effective grounds to defend your case before t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he FAA and take the support of pleathora of judicial rulings on this issue. The Hon'ble Supreme Court in its judgement rendered in the case of E-Com Gill Coffee Trading Pvt Ltd Vs. Commissioner of Commercial Taxes, Karnataka - 2023 (3) TMI 533 - Supreme Court is of strong help to justify the entitlement of ITC which is in consonance with Section 16 of the CGST Act, 2017. Besides ther....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e were huge reliefs given by the Government of India for the taxpayers in view of the COVID-19. Explore them. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Foremost, I would urge the RTP to drill down the ITC availed to the identified suppliers who have not filed their respective GSTR-1 Returns. Only upon identifying the individual suppliers can one take any stand. Re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ply By Shilpi Jain: The Reply: Requires analysis of more facts and the allegation of the officer. Would not do justice this way to answer this question here Reply By Shilpi Jain: The Reply: Though you can note that there are high court decisions which has read down the provision 16(2)(c) of the CGST Act in case of a bona fide purchaser i.e. in case you are a bona fide person then credit sho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uld not be denied to you merely because the supplier has not paid GST. Reply By Shilpi Jain: The Reply: One of them is this Input tax credit cannot be denied to bona fide recipients merely because the supplier failed to remit tax. 12. Case-Laws - HC : Section 16(2)(c) of the CGST/KGST Act and Rule 36(4) of the CGST/KGST Rules were read down, not struck down, so that input tax credit is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....not denied to a bona fide recipient who has satisfied the other statutory conditions merely because the supplier failed to remit tax to the Government. The High Court accepted that a purchaser cannot be required to ensure the supplier's tax payment, as that would impose an impossible burden and penalise the recipient for another's default. The provisions were therefore confined to non-bona....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... fide, collusive or fraudulent transactions, and ITC remains available to genuine recipients affected only by supplier default.<br> Discussion Forum - Knowledge Sharing ....