INPUT TAX CREDIT AVAILMENT ADVISORY
The Goods and Services Tax Act,
2017 came into force in
The Supplier of Goods or Services or Both will issue Tax Invoice to the Recipient of Goods or Services or both and collect GST at the appropriate rates.
The Recipient of Goods or Services or Both is eligible to avail Input Tax Credit only if the Supplier of Goods or Services or Both if declared in FORM GSTR-1 before the stipulated date under B2B Invoice category. If the Supplier of Goods or Services or Both fails to disclose the same under B2B category or discloses under B2C category the Recipient of Goods or Services or Both is ineligible to avail the Input Tax Credit subject to condition that the Supplier has to file FORM GSTR-3B and pays the GST.
The Advisory for availing ITC is now available in the GST Portal as shown below:
Availability
of Input Tax Credit (ITC) for FY 2020-21
17/10/2021
1.As per
Section 16(4) of CGST Act, 2017, no taxpayer shall take input tax credit in
respect records (invoices and debit notes) for supply of goods or services (or
both) for Financial Year 2020-21 after the due date of furnishing the return
for the month of September 2021. The due date for the GSTR-3B for September
2021 is either 20th October 2021 for monthly filers and 22nd or 24th October
2021 depending on the State/UT of registration of the taxpayer. In view of the
same, the following may kindly be noted:
i.)Records (invoice or
debit notes) pertaining to Financial Year 2020-21 reported in GSTR-1 after due
date of GSTR-3B of September 2021 will not reflect as “ITC Available” in
GSTR-2B of the recipients. Such records will reflect in “ITC Not Available”
section of GSTR-2B and such ITC shall in turn not be auto-populated in GSTR-3B.
ii.) Records (invoice or
debit notes) pertaining to Financial Year 2020-21 reported in GSTR-1 after due
date of GSTR-3B of September 2021 will also not reflect as “ITC as per GSTR-2A”
in Table-8A of GSTR-9 of the recipients.
2.It is
requested that the taxpayers may take note of the above and ensure that their
records pertaining to Financial Year 2020-21 are reported on or before the due
date of their GSTR-3B for the month September 2021, or for the quarter of July
to September 2021 in case of quarterly GSTR-3B filers. Availment of ITC by the
recipients contrary to the legal provisions in GST may entail action by the tax
administrations in accordance with law.
Thanking You,
Team GSTN
Advisory
for taxpayers on Form GSTR-2B
18/10/2021
1. Form GSTR-2B is an auto-drafted ITC statement which is
generated for every normal taxpayer on the basis of the information furnished by
their suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable
person) and GSTR-6 (input service distributor). This statement indicates
availability and non-availability of input tax credit to the taxpayer against
each document filed by their suppliers and is made available to the taxpayers
in the afternoon of 14th of every month.
2. Please click on below links to access additional content
related to Form GSTR-2B:
1)https://tutorial.gst.gov.in/downloads/news/updated
advisory_gstr_2b_12_10_2021.pdf – for detailed advisory
2)https://tutorial.gst.gov.in/userguide/returns/index.htm#t=Manual_gstr2b.htm –for
User Manual
3)https://tutorial.gst.gov.in/userguide/returns/index.htm#t=FAQ_gstr2b.htm –
for FAQs
Thanking You,
Team GSTN
FORM GSTR-2B
- Advisory
Q.1 What is GSTR-2B?
GSTR-2B is an auto-drafted ITC statement which is generated for every normal taxpayer on the basis
of the information furnished by his suppliers in
their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). The
statement indicates availability and non-
availability of input tax
credit
to
the taxpayer against each document filed by his suppliers.
Q.2 When
it
is generated and made available to
taxpayer?
It may be noted that process
of GSTR-2B generation starts after ending of IFF, GSTR-5
and GSTR-6 due date on 13th midnight and therefore GSTR-2B can be made available to the taxpayer in the afternoon of
14th of the month. Further, GSTR-2B is a static statement and is made available for each month on the 14th day of the succeeding month. For example, for the month of July 2020, the statement was generated and
made
available
to the
registered
person on 14th August 2020. Details
of all the documents in GSTR-2B is made available online as well as through
download
facility.
Q.3 What are the
inputs
of
GSTR-2B?
• All the B2B information/documents filed by suppliers in
their monthly or quarterly GSTR-1, IFF
and GSTR-5 filed
by NRTP taxpayers.
• Information filed
by ISD taxpayers in their GSTR-6.
• Information
of
ITC of IGST paid
on import of goods filed in
ICEGATE.
Q.4 What is
the cut-off dates for GSTR-2B generation?
Cut-off dates for GSTR-2B generation are on the
basis
of due dates of GSTR-1, GSTR-5 and GSTR-6 as
illustrated below.
• For monthly GSTR-1 filers, any GSTR-1 filed between the due date of furnishing for previous month (M-1) to the due date of
furnishing of GSTR-1 for the current month (M). For
example, GSTR-2B generated for
the month of Jan, 2021 contains the details of all the documents
filed by suppliers in their monthly GSTR-1 from 00:00 hours
on 12th Jan, 2020 to 23:59 hours on 11th Feb
2020.
• For quarterly GSTR-1/IFF, GSTR-5 and 6 filers, any IFF/GSTR-1/5 and GSTR-6 filed between the due date for previous month (M-1) to the due date of furnishing for the current month (M). For example,
GSTR-2B generated
for
the month
of Jan, 2021 contains the
details of all the documents
filed by suppliers in their quarterly GSTR-1/IFF, GSTR-5 and 6 from 00:00 hours on 14th Jan, 2021 to 23:59 hours on
13th Feb 2021.
• The documents furnished by the supplier in any GSTR-1/IFF, GSTR-5 and 6 would reflect in the
next open GSTR-2B of the recipient irrespective of the date of issuance of the concerned document.
For example,
if
a supplier furnishes a document INV-1 dt. 15.05.2020 in the FORM GSTR-1 for the month of July, 2020
filed on 11th August 2020, the details of INV-1,
dt. 15.05.2020 will get reflected in GSTR-2B of July 2020 (generated on 12th August 2020) and not in
the
GSTR-2B of
May, 2020.
Q.5 What should
be done if IGST of imports is
not
featuring in GSTR-2B?
GSTR-2B also
contains information on import of goods from the ICEGATE system including inward
supplies of goods received from Special Economic Zones Units / Developers. This is made available from
GSTR-2B of August 2020. In case any Bill of entry is not being reflected in your GSTR-2B, then you can
fetch the
missing records from ICEGATE by a self-service functionality provided by GSTN. A detailed
advisory is already
issued in
this
respect which can be accessed
at https://www.gst.gov.in/newsandupdates/read/505
Q.6 What about reverse charge entries?
It may be noted
that reverse charge credit on import of services is not a part of this statement and will be continued to
be entered by
taxpayers in Table 4(A)(2) of FORM GSTR-3B. However, reverse charge on
import of goods is auto populated from ICEGATE.
Q.7
Where does ITC available and not-available
summary
shown?
• ITC Available Summary is captured in Table-3 of GSTR-2B which shows the ITC available as on the
date
of generation of FORM GSTR-2B.
It
is divided into
following parts:
A. Part A captures the summary of credit that may be availed in relevant tables of FORM
GSTR-3B.
B. Part B captures the summary of credit that shall be reversed in relevant table of FORM GSTR-3B.
• ITC not-available summary is captured
in Table 4 of GSTR-2B which shows the summary of ITC not
available as on the date of generation of FORM GSTR-2B, under the specific scenarios detailed at Sr. No.
11 below. Credit reflected in
this table shall not be entered in
Table
4(A) of FORM
GSTR-3B.
•
Credit shown as “ITC Not available” in Table 4, Part A covers the following scenarios only: -
i. Invoice or debit note for supply of goods or services or both where the recipient is not entitled
to input tax credit as
per
the provisions of sub-section (4) of Section 16
of
CGST Act, 2017.
ii. Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State
while recipient is in another State.
However, there may be other scenarios for which Input Tax Credit may not be
available to the taxpayers
as per other legal provisions. Taxpayers are advised to exercise caution and self-assess & reverse such credit in their FORM
GSTR-3B.
Q.8
What does taxpayers need
to
ensure?
Taxpayers
are
advised to ensure that the
data generated in GSTR-2B is reconciled with
their own records
and books of accounts. Taxpayers shall ensure that
i.
No credit shall be availed twice for any
document under any
circumstances.
ii. Credit shall be reversed as per GST Act and Rules in their FORM GSTR-3B.
iii. Tax on reverse charge basis shall be paid.
• Detailed and
section
wise instructions are provided in GSTR-2B and taxpayers may view
the same.
Terms Used:
i. ITC – Input tax credit
ii. B2B – Business to Business
iii. ISD – Input service distributor
iv. IMPG – Import of goods
v. IMPGSEZ
– Import of goods or inward supply of goods from Special Economic Zones