A business owner availed Input Tax Credit (ITC) based on a supplier's GSTR1 that was submitted but not filed for a specific quarter. Although the supplier later filed the return, this caused a discrepancy in the annual return. The question is whether the ITC can be retained or if it needs to be reversed with interest, especially since no GST notice has been received.
05 March 2021
One of my supplier has uploaded invoices in GSTR1(July-Sep 2019) and submitted but did not filed that return ,the same was showing in my GSTR2A and ITC of same was also availed by me at that time . Supplier have filed all later and previous GSTR3B and GSTR1 returns till date but missed filing for this quarter only . Due to this I was having ITC difference in column 8 of my annual return 2019-20. He finally filed SEP,2019 GSTR1 in MARCH,2021 after me filing annual return in Feb,2021. Will I be allowed to keep the ITC I have availed ? or do I have to reverse it along with interest ? I haven't received any notice from GST regarding the payment of difference in ITC yet.