Resolving the issue of GST Credit Mismatch for FY 2017-18 and 2018-19 & unresolved issues
A point which is part of each and every audit or investigation conducted by the GST departments is regarding the credits claimed under GSTR-3B vs GSTR-2A.
Without prejudice to various challenges about the validity of such comparison and ineligibility of ITC, Circular 183 is sorting out this point for FY 2017-18 and 2018-19.
So, if your credit which is not available in GSTR-2A for ONE Financial Year is more than Rs. 5 lakh from ANY ONE SUPPLIER, just produce a CA certificate stating that the supply was actually made from the supplier to the taxpayer and the supplier has discharged the tax in Form GSTR-3B.
-If your credit is which is not available in GSTR-2A for ONE Financial Year is less than Rs. 5 lakh from ANY SUPPLIER, self certificate from that supplier as mentioned above would be enough.
There are some issues which is worth pondering still after the said circular, as under:
- What if the supplier has not paid tax related to that in FORM GSTR-3B but paid it through DRC-03 due to any genuine reason.
- How should a CA verify the details and give the certificate if the supplier is reluctant to share such business sensitive information.
- Condition again on the basis of proviso to Section 16(4) (Para 4.2 of the circular) will still hurt the genuine taxpayers.
- 120%, 110% of GSTR-2A credits (basically Rule 36(4) amended time to time) seem useless.
- Instructions will apply for cases of FY 2017-18 and 2018-19.
- 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.
The copy of the Circular No. 182 is as under:
[pdf-embedderurl=”https://thetaxtalk.com/wp-content/uploads/2022/12/Circular-No.-182.pdf” title=”Resolving the issue of GST Credit Mismatch for FY 2017-18 and 2018-19 & unresolved issues”]