The Central Board of Indirect Taxes and Customs (CBIC) on July 17, 2023, issued a circular regarding the Clarification to deal with the difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period April 01, 2019, to December 31, 2021.
The following has been stated: -
•GSTR-3B is a monthly or quarterly self-declared return where taxpayers report their output and input tax liabilities, and avail ITC accordingly. On the other hand, GSTR-2A is an auto-populated return that contains details of the inward supplies reported by the supplier.
•The circular highlights that taxpayers have reported instances, where the ITC reflected in GSTR-TB, does not match the data available in GSTR-2A. To rectify this disparity, taxpayers are instructed to conduct a thorough reconciliation of their ITC data for the mentioned period. The circular emphasizes the importance of accurate reporting and compliance with GST regulations.
•Businesses and taxpayers are urged to reconcile their ITC data in GSTR-TB with that in GSTR-2A.
The detailed circular is attached in the document given below.
[Circular No. 193/05/2023-GST]
