ITC can’t avail on Same Invoice

ITC can't avail on Same Invoice

GSTN advises Taxpayers not to avail ITC on Same Invoice appearing twice in GSTR-2B

New clause “(aa)” to Section 16(2) has been inserted vide Section 109 of the Finance Act, 2021 which was made applicable w.e.f. 01.01.2022 vide Notification No. 39/2021- Central Tax dated 21.12.2021 Further,

consequent changes have been made in Rule 36(4) of CGST Rules, 2017 to align it with new clause (aa) of Section 16(2) of CGST Act, 2017.

Accordingly, w.e.f. 01.01.2022, a registered person shall be able to avail ITC in respect  of only those invoices or debit notes the details of which have been furnished by the supplier in their  GSTR-1/IFF and appearing in GSTR-2B

Key Points

1. Earlier Rule 36(4) mandated claimed of ITC based on gross reconciliation (not supplier-wise) but now document-wise reconciliation is required to be done

2. In case of quarterly vendors filing GSTR-1 on a quarterly basis, ITC will be available only when the same is furnished by the vendors in GSTR-1 or in IFF on a monthly basis.

3. As per strict interpretation of the above provisions, since registered suppliers where recipient is paying tax under RCM i.e. legal services, transportation services etc. are required to upload the details of Invoices/Debit Notes in GSTR-1 as per Section 37(1) of CGST Act, 2017, the restriction of claim of ITC will apply even in case of inward supplies liable to RCM received from registered suppliers

4. The restriction of ITC does not apply to import of goods from outside India including SEZ, import of services, ISD credit, RCM credit on supplies from unregistered persons

5. The matching of ITC should be done as per GSTR-2B and not GSTR-2A in terms of Rule 36(4).

6. Such amendment made effective w.e.f. 01.01.2022 shall apply to all the ITC taken on or after 01.01.2022, meaning thereby that such restriction would apply even if credit is taken on or after 01.2022 on invoices raised before 01.01.2022.

GSTN advises Taxpayers not to avail ITC on Same Invoice appearing twice in GSTR-2B

The Goods and Services Tax Network (GSTN) has advised the few taxpayers (recipients of supply) have reported that they have observed same invoice twice in GSTR 2B for the months of April and May, 2022.

The GSTN has advised the Taxpayers not to avail ITC on same invoice twice. The Department has said that, A solution to the issue would be implemented shortly.

Form GSTR-2B- Form GSTR-2B is a system-generated (auto-populated) statement reflecting input tax credit details.

The statement gets auto-generated on the 12th of the succeeding month. Form GSTR-2A gets auto-generated based on the details/ information furnished by supplier/ seller/ counterparty.


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