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Circular No. 183/15/2022-GST
F. No. CBIC-20001/2/2022 - GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
New Delhi, Dated the 27
th
December, 2022
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarification to deal with difference in Input Tax Credit (ITC) availed in
FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and
2018-19 – reg.
Section 16 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as
“CGST Act”) provides for eligibility and conditions for availing Input Tax Credit (ITC).
During the initial period of implementation of GST, during the financial years 2017-18 and
2018-19, in many cases, the suppliers have failed to furnish the correct details of outward
supplies in their FORM GSTR-1, which has led to certain deficiencies or discrepancies in
FORM GSTR-2A of their recipients. However, the concerned recipients may have availed
input tax credit on the said supplies in their returns in FORM GSTR-3B. The discrepancies
between the amount of ITC availed by the registered persons in their returns in FORM GSTR-
3B and the amount as available in their FORM GSTR-2A are being noticed by the tax officers
during proceedings such as scrutiny/ audit/ investigation etc. due to such credit not flowing to
FORM GSTR-2A of the said registered persons. Such discrepancies are considered by the tax
officers as representing ineligible ITC availed by the registered persons, and are being flagged
seeking explanation from the registered persons for such discrepancies and/or for reversal of
such ineligible ITC.
2. It is mentioned that FORM GSTR-2A could not be made available to the taxpayers on
the common portal during the initial stages of implementation of GST. Further, restrictions
regarding availment of ITC by the registered persons upto certain specified limit beyond the
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ITC available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and
Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) only with effect from 9
th
October 2019. However, the availability of ITC was subjected to restrictions and conditions
specified in Section 16 of CGST Act from 1
st
July, 2017 itself. In view of this, various
representations have been received from the trade as well as the tax authorities, seeking
clarification regarding the manner of dealing with such discrepancies between the amount of
ITC availed by the registered persons in their FORM GSTR-3B and the amount as available in
their FORM GSTR-2A during FY 2017-18 and FY 2018-19.
3. In order to ensure uniformity in the implementation of the provisions of the law across
the field formations, the Board, in exercise of its powers conferred under section 168(1) of the
CGST Act, hereby clarifies as follows:
S. No. Scenario Clarification
a. Where the supplier has failed to file
FORM GSTR-1 for a tax period but
has filed the return in FORM
GSTR-3B for said tax period, due
to which the supplies made in the
said tax period do not get reflected
in FORM GSTR -2A of the
recipients.
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.
b. Where the supplier has filed FORM
GSTR-1 as well as return in FORM
GSTR-3B for a tax period, but has
failed to report a particular supply
in FORM GSTR-1, due to which
the said supply does not get
reflected in FORM GSTR-2A of
the recipient.
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.
c. Where supplies were made to a
registered person and invoice is
issued as per Rule 46 of CGST
Rules containing GSTIN of the
recipient, but supplier has wrongly
reported the said supply as B2C
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.
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4. The proper officer shall first seek the details from the registered person regarding all
the invoices on which ITC has been availed by the registered person in his FORM GSTR 3B
but which are not reflecting in his FORM GSTR 2A. He shall then ascertain fulfillment of the
following conditions of Section 16 of CGST Act in respect of the input tax credit availed on
such invoices by the said registered person:
i) that he is in possession of a tax invoice or debit note issued by the supplier or such
other tax paying documents;
ii) that he has received the goods or services or both;
iii) that he has made payment for the amount towards the value of supply, along with
tax payable thereon, to the supplier.
S. No. Scenario Clarification
supply, instead of B2B supply, in
his FORM GSTR-1, due to which
the said supply does not get
reflected in FORM GSTR-2A of
the said registered person.
d. Where the supplier has filed FORM
GSTR-1 as well as return in FORM
GSTR-3B for a tax period, but he
has declared the supply with wrong
GSTIN of the recipient in FORM
GSTR-1.
In such cases, the difference in ITC claimed by
the registered person in his return in FORM
GSTR-3B and that available in FORM GSTR-2A
may be handled by following the procedure
provided in para 4 below.
In addition, the proper officer of the actual
recipient shall intimate the concerned
jurisdictional tax authority of the registered
person, whose GSTIN has been mentioned
wrongly, that ITC on those transactions is
required to be disallowed, if claimed by such
recipients in their FORM GSTR-3B. However,
allowance of ITC to the actual recipient shall not
depend on the completion of the action by the tax
authority of such registered person, whose
GSTIN has been mentioned wrongly, and such
action will be pursued as an independent action.
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Besides, the proper officer shall also check whether any reversal of input tax credit is
required to be made in accordance with section 17 or section 18 of CGST Act and also whether
the said input tax credit has been availed within the time period specified under sub-section (4)
of section 16 of CGST Act.
4.1 In order to verify the condition of clause (c) of sub-section (2) of Section 16 of CGST
Act that tax on the said supply has been paid by the supplier, the following action may be taken
by the proper officer:
4.1.1 In case, where difference between the ITC claimed in FORM GSTR-3B and that
available in FORM GSTR 2A of the registered person in respect of a supplier for the said
financial year exceeds Rs 5 lakh, the proper officer shall ask the registered person to produce
a certificate for the concerned supplier from the Chartered Accountant (CA) or the Cost
Accountant (CMA), certifying that supplies in respect of the said invoices of supplier have
actually been made by the supplier to the said registered person and the tax on such supplies
has been paid by the said supplier in his return in FORM GSTR 3B. Certificate issued by CA
or CMA shall contain UDIN. UDIN of the certificate issued by CAs can be verified from ICAI
website https://udin.icai.org/search-udin and that issued by CMAs can be verified from ICMAI
website https://eicmai.in/udin/VerifyUDIN.aspx .
4.1.2 In cases, where difference between the ITC claimed in FORM GSTR-3B and that
available in FORM GSTR 2A of the registered person in respect of a supplier for the said
financial year is upto Rs 5 lakh, the proper officer shall ask the claimant to produce a certificate
from the concerned supplier to the effect that said supplies have actually been made by him to
the said registered person and the tax on said supplies has been paid by the said supplier in his
return in FORM GSTR 3B.
4.2 However, it may be noted that for the period FY 2017-18, as per proviso to section
16(4) of CGST Act, the aforesaid relaxations shall not be applicable to the claim of ITC made
in the FORM GSTR-3B return filed after the due date of furnishing return for the month of
September, 2018 till the due date of furnishing return for March, 2019, if supplier had not
furnished details of the said supply in his FORM GSTR-1 till the due date of furnishing
FORM GSTR 1 for the month of March, 2019.
5. It may also be noted that the clarifications given hereunder are case specific and are
applicable to the bonafide errors committed in reporting during FY 2017-18 and 2018-
19. Further, these guidelines are clarificatory in nature and may be applied as per the actual
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facts and circumstances of each case and shall not be used in the interpretation of the provisions
of law.
6. These instructions 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.
However, these instructions will apply in those cases for FY 2017-18 and 2018-19 where any
adjudication or appeal proceedings are still pending.
7. Difficulty, if any, in the implementation of the above instructions may please be brought
to the notice of the Board. Hindi version would follow.
Sanjay Mangal
Principal Commissioner (GST)
