The Government of Uttar Pradesh has issued a clarification to deal with the difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19. This clarification was issued on January 02, 2023.
The difference in ITC claimed by the registered person in GSTR-3B and that available in form GSTR-2A in the following scenarios have been stated:
Scenario 1: In a tax period, where the supplier has failed to file FORM GSTR-1 but has filed the return in FORM GSTR-3B, due to which the supplies made in the tax period do not get reflected in FORM GSTR-2A of the recipients.
Scenario 2: Where the supplier has filed FORM GSTR-1 as well as return in FORM GSTR-3B for a tax period but has failed to report a particular supply in FORM GSTR-1, due to which the said supply does not get reflected in FORM GSTR-2A of the recipient.
Scenario 3: Where supplies were made to a registered person and an invoice is issued as per Rule 46 of CGST Rules containing GSTIN of the recipient, but the supplier has wrongly reported the said supply as B2C supply, instead of B2B supply, in his FORM GSTR-1, due to which the said supply does not get reflected in FORM GSTR-2A of the said registered person.
Scenario 4: Where the supplier has filed FORM GSTR-1 as well as return in FORM GSTR-3B for a tax period, but he has declared the supply with the wrong GSTIN of the recipient in FORM GSTR-1.
In addition, the officer of the actual recipient shall intimate the concerned jurisdictional tax authority of the registered person, whose GSTIN has been mentioned wrongly, that ITC on those transactions is required to be disallowed if claimed by such recipients in their FORM GSTR-3B.
However, allowance of ITC to the actual recipient shall not depend on the completion of the action by the tax authority of such registered person, whose GSTIN has been mentioned wrongly, and such action will be pursued as an independent action.
The officer shall first seek the details from the registered person regarding all the invoices on which ITC has been availed by the registered person in his FORM GSTR 3B but which are not reflected in his FORM GSTR 2A. He shall also ascertain fulfillment of the prescribed conditions in respect of the input tax credit availed on such invoices by the said registered person.
Besides, the officer shall also check whether any reversal of input tax credit is required to be made and also whether the said input tax credit has been availed within the time period specified.