TaxTMI 
TaxTMI 
Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to 31.12.2021
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....9 to 31.12.2021 - Regarding. Ref: Circular No. 193/05/2023-GST, dated 17.07.2023, issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs. ***** In the reference cited, the Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi, has issued Circular No 193/05/2023-GST, dated 17.07.2023 on the recommendations of the GST Council. Hence, following pari-materia circular is issued. 2. Attention is invited to Circular No. 1/2023-TNGST dated 04.01.2023, vide which clarification was issued for dealing with the difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A f....
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....of the TNGST Act, ITC can be availed only up to the extent communicated in FORM GSTR-2B. 4.1 As discussed above, rule 36(4) of TNGST Rules allowed additional credit to the tune of 20%, 10% and 5%, as the case may be, during the period from 09.10.2019 to 31.12.2019, 01.01.2020 to 31.12.2020 and 01.01.2021 to 31.12.2021 respectively, subject to certain terms and conditions, in respect of invoices/supplies that were not reported by the concerned suppliers in their FORM GSTR-1 or IFF, leading to discrepancies between the amount of ITC availed by the registered persons in their returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A. It may, however, be noted that such availment of input tax credit was subject to the provisi....
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....ii) In respect of period from 09.10.2019 to 31.12.2019, rule 36(4) of TNGST Rules permitted availment of Input tax credit by a registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section 37, in FORM GSTR-1 or using IFF to the extent not exceeding 20 per cent of the eligible credit available in respect of invoices or debit notes, the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using IFF. Accordingly, the guidelines provided by Circular No. 1/2023-TNGST dated 04.01.2023 shall be applicable for verification of the condition of clause (c) of sub- section (2) of Section 16 of TNGST Act for th....
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.... subject to production of the requisite certificates as per Circular No. 1/2023-TNGST dated 04.01.2023. (iii) Similarly, for the period from 01.01.2020 to 31.12.2020, when rule 36(4) of TNGST Rules allowed additional credit to the tune of 10% in excess of that reported by the suppliers in their FORM GSTR-1 or IFF, the guidelines provided by Circular No. 1/2023-TNGST dated 04.01.2023 shall be applicable, for verification of the condition of clause (c) of sub-section (2) of Section 16 of TNGST Act for the said period, subject to the condition that availment of Input tax credit by the registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section ....
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....1 or using IFF and is communicated to the said registered person in FORM GSTR-2B. 7. Further, it may be noted that proviso to rule 36(4) of TNGST Rules was inserted vide G.O. (Ms) No.77, Commercial Taxes and Registration (B1) Department dated 13.4.2020 published in Tamil Nadu Extra ordinary Gazette Notification No. SRO A-17(b)/2020, dated 13.04.2020 [Issue No.157] and Erratum issued vide G.O. (Ms) No.122, Commercial Taxes and Registration (B1) Department dated 31.07.2020, published in Tamil Nadu Government Extra ordinary Gazette Notification No. SRO A/26(a-2)/2020, dated 31.07.2020 [Issue No.309], to provide that the condition of rule 36(4) shall be applicable cumulatively for the period February to August, 2020 and ITC shall be adjusted....