Excess availment of Input tax credit pertaining for the FY 2017-18 & FY 2018-19: An overview of the circular No.183/15/2022 Dt.27/12/2022:
One may note that the above instructions of circular No.183/15/2022 Dt.27/12/2022 will apply only to the ongoing proceedings in scrutiny/audit investigation, etc. for FY 2017-18 and 2018-19 and not to the completed proceedings.
However, above instructions will apply in those cases for FY 2017-18 and 2018-19 where any adjudication or appeal proceedings are still pending.
The impact of the circular has been summarized as under:
In order to verify the condition mentioned in proviso to section 16(2)c of CGST Act that tax on the said supply has been paid by the supplier, the following action may be taken .
a) Where difference between the ITC claimed in GSTR -3B exceeds the ITC available in GSTR 2A in a financial year exceeds Rs 5 lakh, certificate is required from CA or CMA certifying that supplies in respect of the said invoices of supplier have actually been made by the supplier to the said registered person and the tax on such supplies has been paid by the said supplier in his return in FORM GSTR 3B.
b) Where the difference is less than 5 Lakh, certificate from the concerned supplier is required certifying that the said supplies have actually been made by him to the said registered person and the tax on said supplies has been paid by the said supplier in his return in FORM GSTR 3B.
c)Where the supplier has filed GSTR-1 as well as return in GSTR-3B for a tax period, but he has declared the supply with wrong GSTIN of the recipient in GSTR-1he proper 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 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 subject to fulfillment of proviso to section 16, section17 or section18 of CGST Act.
The copy of the Circular is as under: