Effective 1st January 2022, Section 16(2)(aa) has been inserted in CGST Act,2021 in CFST Act, 2017.
This clause (aa) reads as under-
[(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;]
Section 37 reads as
Every registered person, other than an Input Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed.
For the manner in which the details are to be furnished is given under rule 59 i.e. by furnishing the details of invoices/debit/credit notes on the GST portal.
Further, reference is required to be made to rule 36(4) which prescribes that the ITC shall be claimed by the recipient based on auto-populated details in GSTR2B.The rule is substituted with effect from 1st Jan, 2022 to read as-
"(4) No input tax credit shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under sub-section (1) of section 37 unless,-
(a) the details of such invoices or debit notes have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility; and
(b) the details of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under sub-rule (7) of rule 60.
From the above provisions, it is clear that the ITC w.e.f. 1st Jan 2022 can be claimed by the recipient only when the details of inward supply invoices are appearing in the GSTR2B of the recipient.
There is an important question as to whether the amended rule 36(4) will be applicable for the GSTR 3B of December 2021 or not. The business transactions of inward and outward supply of goods of December are entered in the books of accounts of taxpayer in the month of December. It is only reporting of such transactions in GSTR 3B which is being done in January 2022. When the transactions were done on December 21 then at that point of time old rule 36(4) was in force. Therefore, in our view, it would be in order if the ITC of December is availed by referring to GSTR 2A. We can not say that we are AVAILING the ITC in January so as to apply the amended provisions. ITC was availed in December 2021 only and is being reported in the month of January in GSTR 3B.
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