GST
TRT-2025-
Date:-21-11-22
In:-
Issue Favourable to Tax Payer ?:-
Trade Circular date 21 November 2022
Key Pointers –
- After the recent amendments, Table 4(A) of FORM GSTR 3B pertaining to the particulars of the input tax credit available get auto populated from the auto drafted input tax credit statement in FORM GSTR 2B.
- The utilization of input tax credit towards output tax dues in Table 6 of FORM GSTR 3B also get auto populated from the available balance in the electronic credit ledger an also from the Table 4(C) - “Net ITC available” of the FORM GSTR 3B of the respective tax period.
- The Department have noticed that the taxpayers are deducting the amount of ineligible input tax credit directly by editing the total amount of input tax credit auto populated in Table 4(A) of FORM GSTR 3B. Also, in some cases the taxpayers are not declaring the “ineligible” input tax credits, under Table 4(B) of FORM GSTR 3B resulting in wrong utilization of ineligible credit.
- Such taxpayer shall be liable to reverse/pay such input tax credit along with interest @ 18% per annum from the date of utilization till the date of reversal/repayment and shall also be penalized.
The procedure to be followed for furnishing of information regarding input tax credit availed, reversal thereof and ineligible input tax credit in Table 4 of FORM GSTR-3B:
- Total ITC (eligible as well as ineligible) of the taxpayer will be auto-populated from statement in FORM GSTR 2B in different fields of Table 4A of FORM GSTR 3B
- The taxpayer shall not deduct the amount of ineligible input tax credit directly by editing the total amount of input tax credit auto populated in Table 4A of FORM GSTR 3B.
- Out of the amounts available in Table 4A of FORM GSTR 3B, if the taxpayer have any ineligible input tax credit which is to be reversed on account of Rule 38 or Rule or Rule 43 of the CGST and KGST Rules, 2017, as the case may be, the same shall be declared in Table 4 (B) (1) of FORM GSTR 3B.
- In addition to that, if the taxpayer has any input tax credit which is blocked as per Section 17(5) of the CGST and KSGST Act, 2017 the same shall also be declared in Table 4 (B) (1) of FORM GSTR 3B.
- The taxpayer shall report reversal of ITC which are not permanent in nature and can be reclaimed in future subject to fulfilment of specific conditions, such input tax credit may be reclaimed in the appropriate table in Table 4 (A) of FORM GSTR 3B on fulfilment of necessary conditions. It will shown in Table 4 (D) (1) of FORM GSTR 3B. Table 4 (B) (2) of FORM GSTR 3B may also be used by the taxpayer for reversal of any input tax credit availed in Table 4(A) of FORM GSTR 3B wrongly in any previous tax periods due to any inadvertent/clerical mistakes.
- Accordingly, the “Net ITC Available” in Table 4 (C) will be credited to the electronic credit ledger of the taxpayer and also in Table 6 of FORM GSTR 3B to set-off the output tax dues, if any.
- Input tax credit not available, on account of limitation of time period as specified in Section 16 (4) of the CGST Act or where the recipient of an intra-State supply is located in a different State / UT than that of place of supply, may be reported by the taxpayer in Table 4 D (2) of FORM GSTR 3B. Such details are available in Table 4 of FORM GSTR-2B.
- If any taxpayer has availed ineligible or blocked credits and in cases where the time limit prescribed under Section 39(9) of the Act for rectification by filing FORM GSTR 3B is over, they may reverse such input tax credit on his own ascertainment by filing FORM GST DRC-03.
Download Case Law
